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The Daily Pitch: VC

April 5, 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:

A proliferation of micro-funds is demonstrating that bigger isn't always better when it comes to VC fundraising.

PitchBook is set to extend its private market reach with Morningstar's purchase of LCD from S&P.

Our precision agtech market map explores where investors are planting their money.

Today's Top Stories

Micro-funds proliferate as everything else in VC gets bigger

(PM Images/Getty Images)

One of the biggest trends in VC fundraising has been the rise of the mega-fund, as increasingly large vehicles come to dominate the storyline. US VC funds amassed more than $129 billion last year, and the total came predominantly from a record number of vehicles raising at least $500 million.

Yet micro-funds, meaning those of $50 million or less, have adapted to the changing landscape, setting their own records in 2021 and carving out new opportunities for LPs, firms and startups to access the venture market like never before. Our latest analyst note tracks the growth of these vehicles and what it might mean for deal sizes, investment strategies and returns.

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PitchBook extends private debt market reach with purchase of LCD from S&P

PitchBook founder and CEO John Gabbert (John Vicory)

PitchBook is poised to expand its footprint in the growing market for private-debt data and insights after parent company Morningstar agreed to acquire the Leveraged Commentary & Data unit of S&P Global.

The cash deal is valued at up to $650 million, including $50 million six months after closing if certain sales targets are reached.

The combination of LCD's private credit offerings and PitchBook's premier data and research would create a one-stop-shop for news and research on private finance.

Recommended Reads

As meetings pile up and remote work encourages hours to push beyond 5 p.m., the workday is becoming ever longer. [The Atlantic]

How Bolt founder Ryan Breslow is challenging the culture of Silicon Valley's tech and venture capitalist incumbents. [Forbes]

How Russia has avoided defaulting on its debt. [The New York Times]

Since yesterday, the PitchBook Platform added:

25

VC valuations

1714

People

584

Companies

30

Funds

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Quick Takes


	The Daily Benchmark
	2018 Vintage Global PE Funds between $500M-$1B
	People
	Sequoia taps Botha as Leone's successor
	Ron Fisher to step down from Vision Fund
	VC Deals
	Chinese fast-fashion company valued at $100B
	G Squared leads $100M round for LinkSquares
	Adaptive Phage Therapeutics extends Series B to $61M
	Labster picks up $47M for virtual labs
	Digital food pharmacy Season snags $34M
	Revelle lands $25M in venture debt
	Venatorx raises new funds
	Portfolio Companies
	VC-backed FinAccel acquires Bank Bisnis
	Exits & IPOs
	AMD set to purchase VC-backed Pensando
	Fundraising
	5AM Ventures reels in $750M
	Edison amasses $450M for Fund X
	Avoro Ventures wraps debut fund on $186M
	SeaX secures $60M for second vehicle

The Daily Benchmark

2018 Vintage Global PE Funds between $500M-$1B

Median IRR

15.30%

Top Quartile IRR

23.53%

1.28x

Median TVPI

Select top performers

Adams Street 2018 Global Fund

Crescent Capital Partners VI

Level Equity Growth Partners IV

*IRR: net of fees

82 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

People

Sequoia taps Botha as Leone's successor

Sequoia has named partner Roelof Botha as its new leader, as first reported by The Wall Street Journal. Botha, who has been with Sequoia since 2003, will take over in July when current global managing partner Doug Leone reaches the mandatory retirement age. Leone said in a statement he will remain a general partner at the firm.

View details

Ron Fisher to step down from Vision Fund

Ron Fisher is planning to step down as director and chairman of SoftBank Investment Advisers US on April 15, according to reports. Fisher is said to be remaining as a senior adviser to SoftBank CEO Masayoshi Son.

View details

VC Deals

Chinese fast-fashion company valued at $100B

Fast-fashion giant Shein has reached a valuation of $100 billion after raising $1 billion from investors including General Atlantic, Axios reported. The Chinese company offers clothing, beauty and home products. It has received prior backing from IDG, Sequoia and Tiger Global, according to Bloomberg, which initially reported that the company was raising new funds.

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G Squared leads $100M round for LinkSquares

LinkSquares has raised a $100 million Series C led by G Squared, with support from G2 Venture Partners and existing backers. The Boston-based startup, which provides an AI-based contract management platform for companies' in-house legal teams, is now valued at $800 million.

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Adaptive Phage Therapeutics extends Series B to $61M

Maryland-based Adaptive Phage Therapeutics, a clinical-stage biotech company developing therapies for multidrug-resistant infections, has raised $20 million in a Series B extension. The AMR Action Fund supported the financing, which brings the round's total to $61 million.

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Labster picks up $47M for virtual labs

Copenhagen-based Labster has raised $47 million from investors including Sofina Group and Pirate Impact. The startup, which offers virtual science laboratory simulations for universities and schools, has now raised $147 million in total funding.

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Digital food pharmacy Season snags $34M

Austin-based Season Health has raised $34 million in a Series A led by Andreessen Horowitz. The company, which launched earlier this year, helps patients with chronic diseases access healthy food through meal deliveries prescribed by their medical providers.

View details

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Revelle lands $25M in venture debt

Runway Growth Capital has provided $25 million in senior secured debt to medtech company Revelle Aesthetics, a developer of medical devices for the aesthetics industry. The proceeds will be used to support Avéli, Revelle's product designed to reduce cellulite.

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Venatorx raises new funds

Venatorx Pharmaceuticals has sold shares of its Series C preferred stock in a round led by the AMR Action Fund. The Pennsylvania-based company develops treatments for patients with multidrug-resistant bacterial infections and hard-to-treat viral infections.

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View 38 competitors »

Portfolio Companies

VC-backed FinAccel acquires Bank Bisnis

FinAccel has acquired a 75% stake in Indonesian financial services company Bank Bisnis Internasional. Singapore-based FinAccel, the parent of buy now, pay later platform Kredivo, paid roughly $200 million for the stake, Bloomberg reported. FinAccel is backed by investors including Square Peg Capital and Jungle Ventures.

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View 35 competitors »

Exits & IPOs

AMD set to purchase VC-backed Pensando

AMD, a publicly traded semiconductor manufacturer, has agreed to acquire Pensando, a California-based provider of distributed computing services, for $1.9 billion. Founded in 2017, the company has received prior backing from investors such as Lightspeed and JC2 Ventures.

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View 57 competitors »

Fundraising

5AM Ventures reels in $750M

5AM Ventures has raised $450 million for its seventh flagship vehicle, which will focus on early-stage life sciences startups. The firm has also collected $300 million for its second opportunities vehicle, which will target late-stage investments in its portfolio and elsewhere.

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View 89 investments »

Edison amasses $450M for Fund X

Edison Partners has closed its 10th flagship fund on $450 million. The vehicle will target investments in underserved US regions such as the Southeast and Rocky Mountains.

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View 225 investments »

Avoro Ventures wraps debut fund on $186M

Avoro Ventures has closed its inaugural namesake fund on $186 million in commitments. The firm is the venture arm of Avoro Capital Advisors, a New York-based investment manager that focuses mainly on the life sciences and biotech sectors.

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SeaX secures $60M for second vehicle

SeaX Ventures has closed its second fund with $60 million to help global startups expand in Southeast Asia. The vehicle will target investments in industries including blockchain, foodtech, AI and robotics.

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View 11 investments »