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The Daily Pitch: VC

February 2, 2022

Like our newsletter? The data comes from the PitchBook Platform — our data software for VC, PE and M&A

In today's Daily Pitch, you'll find:

VC and PE fund returns continued their stellar run through Q2 2021, as detailed in our new Global Fund Performance Report.

The secondaries market is seeing a resurgence in activity as more GPs hold onto their investments for longer by rolling them into new continuation funds.

SoftBank's Latin America fund has led a $200 million Series D for freight tech specialist Loadsmart, adding to a funding boom for supply chain startups.

Today's Top Stories

VC, PE fund returns continue to impress—what's next?

Private equity and venture capital funds, along with funds-of-funds, continued to post incredible returns through the end of June, as the world seemed to be through the worst of the pandemic.

Our latest Global Fund Performance Report tracks the data through Q2 2021 across the full range of private fund strategies, breaking down past trends and outlining future expectations in the face of shifting economic conditions. Key takeaways include:

Funds of $5 billion or more performed best among PE vehicles, buoyed by public market comps amid an abundance of massive IPOs.

VC returns displayed the benefits of a robust exit market, with rolling one-year IRRs surpassing 65% as of Q2 2021, marking the fifth consecutive quarter of increasing IRRs.

Real assets funds posted a 19% return over the 12 months ended in Q2 2021, driven by steady returns in infrastructure and a positive trend in oil and gas, though the latter remains volatile.

Private debt funds recorded their strongest performance since 2010, riding the wave of strong corporate earnings and continued bounce back from the pandemic.

read the report

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Loadsmart becomes freight tech's latest unicorn with $200M raise

(shaunl/Getty Images)

A strenuous time for the shipping industry has corresponded with a boom in large rounds for freight tech startups.

Loadsmart has raised a $200 million Series D led by SoftBank's Latin America fund, bringing the company's valuation to $1.3 billion. Chicago-based Loadsmart, which makes software for shippers to instantly book freight, was valued at $330 million in late 2020, according to PitchBook data.

Freight tech startups raised 31 mega-rounds in 2021, more than in the prior three years combined, PitchBook data shows.

Several of those supersized rounds went to trucking logistics companies like Loadsmart. In the past year, Uber Freight raised $550 million, Project44 landed $420 million and Flock Freight $215 million.

Related read: Supply Chain Tech Q3 2021 Emerging Tech Research report

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Continuation funds drive GP-led secondaries wave

(Viaframe/Getty Images)

The secondaries market is seeing a resurgence of activity as more GPs hold onto their investments for longer by rolling them into new continuation funds.

Historically, continuation funds were a means of moving unrealized portfolio investments out of a vehicle that was at the end of its life span. Often it implied that the fund was in some kind of distress and unable to return capital to LPs. This is no longer the case.

We spoke to several industry experts about why the strategy is gaining traction.

Recommended Reads

As retailers and logistics companies try to stockpile goods to hedge against supply chain problems, they're having to get creative with warehouse space. [The New York Times]

Who owns your address in augmented reality? Probably not you, as a growing number of startups and crypto initiatives have begun selling out AR spaces tied to real-world addresses. [Protocol]

As an errant SpaceX rocket booster heads toward smashing into the moon, here are some of the ways space agencies and companies are trying to deal with huge pieces of debris. [Wired]

Since yesterday, the PitchBook Platform added:

13

VC valuations

1804

People

510

Companies

42

Funds

See what our data software can do

Quick Takes


	The Daily Benchmark
	2015 Vintage Global PE Funds with more than $1B
	VC Deals
	Cruise lands $1.35B from SoftBank as it launches driverless rides in SF
	Chargebee brings in $250M
	Wayflyer hits $1.6B valuation
	Construction materials specialist RenoRun nabs $142M
	Jellyfish picks up $71M Series C
	QED leads $25M round for Tint
	VendorPM raises $6M
	Fundraising
	Seven Seven Six scores $500M+

The Daily Benchmark

2015 Vintage Global PE Funds with more than $1B

Median IRR

20.62%

Top Quartile IRR

28.56%

1.72x

Median TVPI

Select top performers

Brookfield Capital Partners IV

Oaktree Power Opportunities Fund IV

Thoma Bravo Discover Fund

*IRR: net of fees

54 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Cruise lands $1.35B from SoftBank as it launches driverless rides in SF

Self-driving technology company Cruise has raised $1.35 billion from Softbank's Vision Fund, following the company's announcement that it will begin operating driverless cars in San Francisco. SoftBank invested $900 million in Cruise in 2018 and committed to investing the additional $1.35 billion when the company opened its driverless cars to the public. Cruise has received backing from investors including General Motors, Honda and Quiet Capital.

View round

View 18 competitors »

Chargebee brings in $250M

Chargebee has raised $250 million at a $3.5 billion valuation in a round co-led by Tiger Global and Sequoia. The company is a provider of subscription-billing and revenue-management software; its customers include Freshworks, Study.com and Calendly. In April, Chargebee raised a $125 million Series G at a $1.4 billion valuation, according to PitchBook data.

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View 36 competitors »

Wayflyer hits $1.6B valuation

Wayflyer has raised a $150 million Series B co-led by DST Global and QED Investors. The funding values the Dublin-based company at $1.6 billion. Wayflyer is the developer of a revenue-based financing and growth platform for ecommerce businesses. Prosus, Madrone Capital Partners, Left Lane Capital and JP Morgan also participated in the funding.

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View 1 competitors »

Construction materials specialist RenoRun nabs $142M

RenoRun has raised a $142 million Series B co-led by Tiger Global and Sozo Ventures. Based in Montreal, the company operates an ecommerce platform for construction and building materials. RenoRun plans to use the funding to expand across North America.

Select Investors:

Fifth Wall, TriplePoint Capital

View round

View 5 competitors »

Jellyfish picks up $71M Series C

Jellyfish has raised $71 million in a round co-led by Accel, Insight Partners and Tiger Global. Based in Boston, the company offers an engineering management platform that helps companies such as Mastercard and Toast manage their teams and operations.

Additional Investor:

Wing Venture Capital

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View 39 competitors »

QED leads $25M round for Tint

Tint, a San Francisco-based developer of embedded insurance products that help tech companies protect their customers, has raised a $25 million Series A led by QED Investors. Nyca, Deciens, Y Combinator and Webb Investment Network also participated in the funding.

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View similar company »

VendorPM raises $6M

VendorPM has raised $6 million in seed financing led by Bessemer Venture Partners. Based in Toronto, the company operates a digital marketplace designed to help property managers connect with service vendors.

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View similar company »

Fundraising

Seven Seven Six scores $500M+

Seven Seven Six has raised over $500 million for its second fund. Founded by Alexis Ohanian, the early-stage VC firm invests primarily in software and technology companies.

View fund

View 42 investments »

Chart of the Day

"IT and healthcare were prevalent sectors for take-privates, with a consortium led by Nordic Capital and Insight Partners acquiring health data company Inovalon for $7.3 billion serving as an example. Notably, Thoma Bravo closed on its take-privates of Medallia and QAD in the fourth quarter, spending $8.4 billion for the pair."

Source: PitchBook's 2021 Annual US PE Breakdown