In case you missed it, the 2021 All In Report features our latest data and analysis focused on female founders in the US VC ecosystem: Get it here
Our VC analysts are working on research that dives into Sequoia's recent single fund and RIA restructuring announcement. We'd love to speak with any lawyers with experience around fund structure documentation. If you're interested, please reach out! | | | | | |
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| When new security problems surface, startups rise to the challenge | | Enterprises are facing security risks that legacy software cannot protect against. Software applications have embedded backdoors for attackers to access. Network permissions are granted at dizzying rates. Data volumes are exponentially increasing in opaque cloud environments. As a result, the conventional methods of antivirus scans and increased firewall capacity fall short against sophisticated attackers. Our data shows how security priorities are changing in these shifting conditions. Historically, endpoint security and network security have led other segments in VC funding. This year, application security, identity & access management, and security operations have far exceeded VC investment in those categories.  | | Identity & access management startups have been very active. | Startups are growing quickly by giving security teams visibility over sprawling identity directories and cloud asset inventories. Incumbents must align their product portfolios with cloud application development and identity management, resulting in a trend of acquisitions in zero trust networking and cloud threat detection. Our Q3 research update focuses on security categories best served by startups and private companies. Web3 security, which refers to the protection of cryptocurrency transactions, requires new protections for an immature financial paradigm. Startups are bringing cloud architecture to data backups, a category in which legacy data backup software has proven insufficient to defend against modern ransomware attacks. Superior risk assessment software is also required to provide streaming intelligence on third-party risk and software supply chain risks. Our full analysis and data are available to clients only, but non-clients can read an executive summary. If you have a PitchBook log-in, get the research here. Don't hesitate to reach out to discuss any of these topics or companies further. | | | | | | | |
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Both PE and VC funds significantly outperformed the S&P 500 for the year ended March 31.
Yet a reversion could be possible as private market performance returns to its more normal state—historically less extreme than the public markets.
Our latest Global Fund Performance Report features full data on IRRs, cash multiples and more through Q1 (with preliminary data for Q2): - VC's paper gains have been spiking over recent quarters, meaning those elevated return metrics could be ephemeral if mark-ups aren't realized.
- Through Q1 2021, private cash flow distributions had already reached 31.4% of full-year 2020 distributions. Another record for cash returned to LPs could be in store.
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MOBILITY TECH: Venture investors have poured a staggering $74.5 billion into mobility tech startups in the first three quarters of 2021—already setting an all-time annual record.
And that doesn't include the combined $33.1 billion raised this year through SPAC mergers.
Indeed, demand isn't slowing for convenient and environmentally friendly ways to move people and things from place to place.
Our analysts have the latest data and also highlighted emerging opportunities in mobility tech: - eSTOL aircraft gain momentum as investors eye electric aircraft that take off and land horizontally over short distances.
- Building a sustainable EV supply chain has led to opportunities in recycling, reuse and alternative chemistries.
- Electric taxi startups could disrupt ridehailing incumbents amid a shift to e-mobility.
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Is VC's dealmaking pace sustainable?
What dark clouds, like valuation overhang, are looming on the horizon?
Which sectors are best positioned for the long term?
In our quarterly Venture Monitor webinar, we discussed key trends and pressing issues in the world of US venture capital with panelists from the NVCA, Silicon Valley Bank and Affinity: watch the replay - Nov. 9: PitchBook's lead fund strategies analyst, Hilary Wiek, will discuss the fundraising climate for emerging managers at ACG New York's LP/GP & Family Office Summit, with data and advice on how to navigate the process. Details here.
- Nov. 10: Our quantitative analysts Andy White and Alex Warfel will take part in a data-driven discussion on VC trends with UConn's Technology Commercialization Services team. Details here.
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Mobility tech analyst Asad Hussain weighs in on the upcoming blockbuster IPO for Rivian, which could value the electric truck company at over $60 billion:
"Between Rivian and Lucid, the market finally has credible candidates for 'the next Tesla.'
"Rivian's differentiation comes from its focus on the untapped premium electric trucks market, which should allow it to gain rapid market adoption.
"While getting to market is a major milestone for the company, Rivian faces major operational challenges as it seeks to ramp up production.
"That said, Rivian is better positioned to tackle these challenges than others thanks to its excellent financial position and relationship with Ford.
"Rivian's order flow and backing from Amazon are key validating signals for investors. We estimate this order flow could bring over $4.5 billion in revenue to Rivian.
"Beyond that, these orders are a validating signal for investors and set Rivian up well to supply electric delivery vans to other logistics companies.
"In the same way investors look to Tesla for the future of automotive, many investors look to Amazon for the future of logistics.
"Amazon's substantial order is an indication that Rivian will be a leader in providing delivery vans as commercial fleets electrify."
| | Asad Hussain
Senior Emerging Technology Analyst
Mobility Tech | | | | | | Climate tech analyst Svenja Telle weighs in on fusion energy company Helion Energy's $500 million round led by Sam Altman:
"Helion Energy's $500 million Series E marks the largest deal in clean energy ever and could be the beginning of a new era: abundant, clean energy from commercialized fusion technology.
"With growing demand for clean energy solutions and bullish climate investments, some of the top Silicon Valley tech investors poured $500 million dollars with an additional $1.7 billion of commitments into the holy grail of nuclear fusion energy technology.
"[The deal] is a milestone for climate technology as the company's success could deliver practically endless amounts of low-risk clean energy while producing far less operational radioactivity and toxic waste by-products.
"Even though this deal is the largest cleantech VC deal ever, we will see more deals of this size soon, as COP26 became a stage for the private sector to fully commit to investing trillions of dollars into clean technologies over the next 30 years."
| | Svenja Telle
Emerging Technology Analyst
Climate Tech | | | | | |
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Our insights and data featured in the press: - Why the electric car era is a threat to Uber and Lyft. [Axios]
- "While COP21 was very ambitious with the Paris agreement, we are now at a point where we need solutions, and startups are going to supply those solutions to the existing technology gap." [Yahoo Finance]
- Our All In Report was covered by numerous outlets, highlighting the important increase in women GPs, a surge in VC funding for female founders, and the industry's still-widening gender gap. [Institutional Investor, New York Times, Fortune, Protocol]
If you're a journalist interested in interviewing our analysts or requesting data, contact our PR team. | | | | | |
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Highlights from our other research published over the past couple of months:
Market updates Thematic research Emerging Technology Research (free previews) Coming next week (subject to change) - US VC Valuations Report
- ETR: Foodtech
- ETR: Enterprise Healthtech
- Venture Debt in Life Sciences
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| | Since yesterday, the PitchBook Platform added: | | 232 Deals | 559 People | 173 Companies | 19 Funds | | | | | | |
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