PitchBook News - US VC braces for a possible slowdown

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The Daily Pitch: VC

March 11, 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:

Our latest Quantitative Perspectives report dives into how the US venture industry may be able to weather headwinds in 2022.

Our insurtech market map explores how VC funding is growing to protect against cyber threats.

The media rights businesses of European soccer leagues continue to attract the attention of private equity investors.

Today's Top Stories

Quantitative Perspectives: US VC braces for possibility of slowdown

Despite the breakneck momentum of the past two years, 2022 has ushered in some potential headwinds for the venture capital industry. Depressed equity markets, a prominent theme of inflation and geopolitical turmoil are all contributing to uncertainty.

Our latest Quantitative Perspectives report dives deep into how the US venture industry may be able to weather these difficulties. The report also offers a closer look at public market movements, which have historically been a good indicator of venture activity.

Key takeaways:

Investors have left themselves vulnerable to valuation corrections by sacrificing protective deal terms in exchange for access to deal flow.

The prospect of increasing bond yields may reduce venture's allure to LPs, but that effect will likely be tempered if inflation persists.

VC investment outside of traditional funding hot spots accelerated during the pandemic as investment ticked up substantially in many states, including Vermont and Montana.

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Market Map: Insurtech VC funding grows to protect against cyber threats

(erhui1979/Getty Images)

Venture capital investment in insurtech is booming, with companies raising more than $14 billion in 2021—more than in the previous two years combined.

One of the biggest drivers in this growth has been cyber insurance, as the changing nature of digital attacks has left gaps in coverage, convincing many companies to pursue standalone policies.

Check out our insurtech market map to explore where else investors have placed their bets.

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Private equity firms vie for media rights of France's Ligue 1

(John Berry/Getty Images)

Media rights to European soccer leagues are an increasingly coveted prize for global private equity firms making a play for exposure in the international world of sports.

In one of the latest bids, firms including CVC Capital Partners, Silver Lake, Hellman & Friedman and Oaktree Capital are said to be vying for a minority stake in the new media rights unit of French soccer league Ligue 1.

Recommended Reads

Private equity firms were once niche players serving big clients. Now they're becoming the supermarkets of the financial industry. [The New York Times]

When AI tech vendors spotlight their work with defense industry customers, it's not always considered a badge of honor. But they still want the contracts. [Protocol]

Banks that committed to lend tens of billions of dollars for leveraged buyouts and acquisitions are in search of buyers amid slow bond and loan markets. [Bloomberg]

Since yesterday, the PitchBook Platform added:

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Quick Takes


	The Daily Benchmark
	2020 Vintage Global PE Funds
	VC Deals
	Roofstock lands $240M
	Capchase picks up $80M to finance startup founders
	RefleXion raises $80M
	Slingshot Aerospace locks in $25M
	Chipper secures seed financing
	Fundraising
	Makers Fund raises $500M for third fund
	Investors
	Bessemer earmarks $250M for crypto

The Daily Benchmark

2020 Vintage Global PE Funds

Median IRR

13.54%

Top Quartile IRR

43.90%

1.10x

Median TVPI

Select top performers

Dyal Capital Partners V

Hg Capital Saturn 2

General Catalyst Group X - Growth Venture

*IRR: net of fees

93 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Roofstock lands $240M

Roofstock has raised a $240 million Series E at a $1.94 billion valuation. SoftBank's Vision Fund 2 led the round for the Oakland, Calif.-based company, which offers a digital real estate investing platform.

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View 21 competitors »

Capchase picks up $80M to finance startup founders

Capchase has raised an $80 million Series B led by 01 Advisors. The Boston-based company's platform is designed to help recurring-revenue businesses access and automate non-dilutive financing.

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View 1 competitors »

RefleXion raises $80M

Oncology company RefleXion has raised $80 million from investors including Ascension Ventures, Catalio Capital Management and Sixty Degree Capital. RefleXion is developing a biology-guided radiotherapy system intended to treat multiple tumors in the same treatment session.

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View 16 competitors »

Slingshot Aerospace locks in $25M

Slingshot Aerospace has raised $25 million in Series A1 financing co-led by Draper Associates and ATX Ventures. Based in Austin, the company is a developer of space simulation and data analytics products to help design, manage and secure satellites.

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Chipper secures seed financing

Chipper has raised $5.6 million in a round co-led by Freestyle Capital, Propel Venture Partners and Slauson & Co. The Austin-based company is the developer of a fintech platform designed to help student loan borrowers manage debt repayment.

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Fundraising

Makers Fund raises $500M for third fund

Makers Fund has raised $500 million for its third investment vehicle. The early-stage VC firm focuses on startups in the entertainment sector; its portfolio includes game developer End Game and DreamCraft, which helps users publish and monetize games without writing code.

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View 61 investments »

Investors

Bessemer earmarks $250M for crypto

Bessemer Venture Partners has earmarked $250 million for investment in three sectors: consumer crypto, Web3 infrastructure and decentralized finance. The venture firm has also announced BessemerDAO, a discussion group for Web3 founders, investors and talent interested in crypto trends and resources.

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View 858 investments »

Chart of the Day

"Financial institutions including PE firms, hedge funds, pension funds, sovereign wealth funds, investment banks, and corporate VC (CVC) arms, among others— collectively known as nontraditional investors—have increased their presence in the VC ecosystem in the past five years. The influx of nontraditional capital in the European VC landscape has led to increased competition between investors, larger rounds, and swelling valuations."

Source: PitchBook's 2021 Annual European VC Valuations Report