| | In today's Daily Pitch, you'll find: - An analysis of why enterprises are investing more aggressively in DevOps, and details on emerging opportunities in the space.
- Primarily a late-stage investor, SoftBank has been a leader when it comes to seizing opportunities in Latin America—and is launching its second fund focused on the region.
| | | | | | | | | | Why the DevOps ecosystem keeps expanding | | The rapid pace of digital transformation has increased pressure on companies to improve front-end customer software and automate internal processes. And to harness the potential of the cloud, a growing cohort of DevOps startups are creating digital products to help enterprises build software and IT infrastructure.
Our latest installment of Emerging Tech Research includes analysis of why enterprises are investing more aggressively in DevOps, and details on emerging opportunities in the space. Key takeaways include: - Venture funding for global DevOps startups hit $4 billion in the second quarter of 2021—including a $1 billion Series C for MessageBird, which offers a cloud communication platform.
- Exit activity was relatively stable in terms of deal count, but deal value was dominated by the IPOs of robotic process automation specialist UiPath and Confluent, which provides a data and application integration platform.
- Our analysts believe the market for container management software is maturing, but faces rapid disruptions as new technologies emerge.
| | | | | | | | | | SoftBank doubles down on LatAm after first fund tops its expectations | |  | COO Marcelo Claure leads SoftBank's Latin America funds.
(Andreas Rentz/Getty Images) | | | SoftBank isn't known for identifying opportunities ahead of other venture capitalists. But its strategy in Latin America is a notable exception. - The Japanese conglomerate started investing in the region before other top-tier VCs recognized the massive opportunity it holds.
- After realizing a net IRR of 85% on its first LatAm fund, SoftBank has launched a second vehicle dedicated to the region.
- Valuation step-ups on notable SoftBank investments in Latin America range from 1.5x on Colombia's Rappi to 8.4x on Brazil-based VTEX, according to PitchBook data.
| | | | | | | | | | A message from the National Science Foundation | | | | | Internet-of-things satellite startup Swarm Technologies operates a ground station network and a global constellation of 120 "sandwich-sized" space satellites. SpaceX is in the process of acquiring the NSF-funded company.
Swarm Technologies (NSF-1758752) is one of hundreds of deep tech startups funded annually by the NSF, a governmental agency that accelerates discoveries into the marketplace.
Each startup can receive up to $2 million to support translational research and development. By annually investing roughly $200 million in startups, NSF helps teams navigate the earliest stages of technology translation. In the past five years, these companies have gone on to raise billions in follow-on capital, and the portfolio has had 100-plus exits.
Learn more about NSF funding at seedfund.nsf.gov. | | | | | | | | | | Advent, GIC team up in $5.6B bid to bag UK tea brands | |  | | (virusowy/Getty Images) | | | Advent International has joined with GIC in a £4 billion bid (about $5.6 billion) to buy PG Tips, Lipton and other tea brands from Unilever, Sky News reported. - The Anglo-Dutch consumer goods giant began exploring a sale of the business in early 2020. The unit is said to have previously attracted interest from PE suitors including Cinven and the Abu Dhabi Investment Authority, as well as The Carlyle Group, Clayton Dubilier & Rice and KKR.
- If a deal goes ahead, it won't be the first time Unilever has sold to PE. In 2017, for example, KKR acquired its margarine and spreads division for around $8 billion. It also wouldn't be the first time PE has invested in tea, with London-based Zetland Capital buying the UK's Typhoo in July.
- GIC, which has been an LP in at least four Advent funds, has a history of teaming up with the firm. Earlier this month, the pair made a joint offer to buy Swedish Orphan Biovitrum in a deal valuing the Stockholm-listed pharmaceuticals company at 69.4 billion Swedish kronor (around $8.1 billion).
| | | | | | | | | | A look at how startup founders are using record-high valuations to cash out of their companies earlier. [The Information]
Why even giant vessels can't solve the shipping crisis. [BBC]
Amazon has become ubiquitous in markets across the board. Its next target? Healthcare. [Financial Times] | | | | | | | | | | | Since yesterday, the PitchBook Platform added: | | 479 Deals | 1863 People | 498 Companies | 24 Funds | | | | | | | | | | | | | | | | | | | | 2018 Vintage European Real Assets Funds | | | | | | | | | | | A message from Masterworks | | | | Where to invest $100,000 right now according to experts | | Investors face a dilemma. The pandemic has disrupted markets. The S&P 500 is trading over 35 times P/E. Treasury yields are near zero.
Finding promising investments is harder than ever.
Bloomberg asked investment experts where they'd invest $100,000 today. They overwhelmingly recommended alternatives like art.
After all, billionaires always place their bets on art. Rockefeller, Bezos and Gates all collect art.
These numbers explain why: - Contemporary art prices appreciated 14% annually on average (1995-2020)
- Wealthy collectors allocate 10% to 30% of their portfolios to art
- Lowest correlation to public equities of any asset class
You can allocate to this asset class with Masterworks.io, the first company to securitize paintings by artists such as Monet, Banksy and Basquiat.
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*See important disclaimers | | | | | | | | | | | | Melio makes off with $250M Series D, triples valuation | | | | | | | | | Misfits Market scoops up $225M for grocery platform | | | Online grocery startup Misfits Market has closed a $225 million Series C1 round led by SoftBank's Vision Fund 2, with support from Accel. The new financing values the New Jersey-based company at $2 billion and will be used to help it expand throughout the US and increase its selection of items. Misfits Market delivers proteins, pantry staples, organic produce and other items in 43 states, with a focus on sustainability and eliminating food waste. | | | | | | | | Tiger Global leads $150M round for Xendit | | | Xendit, the developer of payments infrastructure designed to help businesses across Southeast Asia accept payments and manage operations, has raised a $150 million Series C led by Tiger Global. The Jakarta-based company is now valued at more than $1 billion. Accel, Amasia and Goat Capital also participated in the funding. | | | | | | | | Stord hits $1B+ valuation | | | | | | | | | Construction tech startup lands $80M | | | Versatile has raised an $80 million Series B led by Insight Partners. Founded in 2016, the California-based company is a developer of construction tech software that helps users analyze data in real time and provides them with visibility into production rates. Versatile was valued at $72 million in December, according to PitchBook data. | | | | | | | | Ribbon secures new funding | | | Ribbon has raised a $75 million Series C led by Greenspring Associates. The New York-based company provides a real estate platform that helps customers obtain a mortgage. Founded in 2017, Ribbon was valued at $160 million in 2019, according to PitchBook data. The company has also raised $75 million in additional working capital. | | | | | | | | | | | | | | | | | | | Apollo circles Tronox in $4B+ transaction | | | Apollo Global Management has offered to acquire Tronox, a pigment and chemical manufacturing company, in a take-private deal for $4.3 billion in cash, Reuters reported. Apollo offered $27 per share for the Connecticut-based company. | | | | | | | | Thoma Bravo set to acquire HCSS | | | Tech investor Thoma Bravo has agreed to purchase HCSS, a Texas-based supplier of estimating, operations and fleet management software to the construction sector. Founded 35 years ago, HCSS has provided services to over 3,500 companies in the US and Canada. | | | | | | | | Clearlake strikes deal for Mold-Rite | | | | | | | | | Siris seeks possible Radware takeover | | | Siris Capital is in talks to buy cybersecurity specialist Radware, CNBC reported. Radware, which went public in 1999, has a market cap of about $1.7 billion and specializes in detecting and stopped targeted server attacks. The company has headquarters in New Jersey and Tel Aviv. If Siris and Radware reach an agreement, it would add to an already record-setting year for private equity deals in cybersecurity. | | | | | | | | | | | | EngageSmart eyes $330+ in IPO | | | General Atlantic- and Summit Partners-backed payment acceptance and invoice presentment SaaS company EngageSmart will sell 14.6 million shares priced between $23 and $25 a share in its IPO. EngageSmart would raise roughly $350 million at the midpoint of the range. | | | | | | | | PE-backed Brilliant Earth looks to raise $250M in IPO | | | Mainsail Partners-backed Brilliant Earth has established plans to sell more than 16.6 million shares priced between $14 and $16 apiece in its upcoming IPO on the Nasdaq. The company, which sells ethically sourced jewelry, would raise around $250 million at the midpoint of that range, with MarketWatch reporting a valuation of up to $1.5 billion. Brilliant Earth posted $163 million in revenue for the first half of 2021. | | | | | | | | Advent's Sovos Brands sets IPO terms | | | Advent International-owned Sovos Brands plans to sell 23.3 million shares for between $14 and $16 apiece in its public debut on the Nasdaq. The company would raise nearly $350 million at the midpoint of that range. Sovos owns a variety of food and beverage brands, including Rao's Specialty Foods and Noosa. Advent International has backed Colorado-based Sovos since it helped launch the company 2017. | | | | | | | | Sportradar sees shares fall after market debut | | | Canada Pension Plan Investment Board-backed Sportradar, a Swiss provider of sports betting, entertainment products and services, saw its stock fall 7.2% in its first day of trading. The stock closed at $25.05 a share, valuing the company at $7.4 billion, The Wall Street Journal reported. Alongside the CPPIB, investors in Sportradar include TCV, Revolution, Michael Jordan and Mark Cuban. | | | | | | | | | | | | QED Investors nails down $1B+ for Fund VII | | | Virginia-based QED Investors has closed its seventh flagship vehicle with $1.05 billion in capital commitments, raising $550 million for early-stage deals and $500 million for growth-stage investments. Founded in 2007, QED typically backs financial services startups in the US, UK, Latin America and Southeast Asia. It has invested in companies including Klarna, Credit Karma, Creditas and Remitly. | | | | | | | | Amulet hauls in $650M for second fund | | | Connecticut-based Amulet Capital Partners has closed its second namesake fund at $650 million. The fund will focus on the healthcare sector and has already made two investments. With this fundraise, Amulet Capital now manages over $1.3 billion in investments. | | | | | | | | Finback closes debut fund at $350M | | | Private equity firm Finback Investment Partners, co-founded by former Florida Gov. Jeb Bush, has raised $350 million for its debut fund. The fund will focus on companies in the business services, information technology, education, healthcare, industrials, digital infrastructure and financial services industries. | | | | | | | | | | | | | | | | | | | | | | Who's in the newsletter today? | | People | | | | Investors | | | | Companies | | | | | | | | | |
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