| | | | | The Daily Pitch: VC, PE and M&A | December 15, 2021 ![]() | | 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: - With data from 2010 to Q3 2021, our new VC Dealmaking Indicator captures how startup- or investor-friendly the deal environment is across the various stages.
- The first three quarters of 2021 saw more VC investment in fintech startups than the entire prior decade.
- Our analysts' predictions for what private capital in Europe will look like in 2022.
| | | | | | | | | | Fintech crams a decade's worth of exits into nine months | | Fintech investors and entrepreneurs continue to be rewarded by an acceleration in digital transactions, retail trading and other pandemic-era tailwinds. Our Q3 2021 VC Fintech update breaks down the latest trends, including: - VC-backed fintech exits surpassed $244 billion in the first three quarters of the year, more than the combined total of the prior decade. The third quarter was headlined by IPOs from trading platform Robinhood and restaurant point-of-sale software maker Toast.
- Against the backdrop of supersized exits, investors' price sensitivity has plummeted. The median fintech valuation multiple hit 21.7 times, and the typical late-stage pre-money deal value leapt to $265 million.
- As cryptocurrencies continue to earn mainstream acceptance, one area to watch is institutional crypto custodians, which store private keys, verify access and approve transactions on behalf of clients.
| | | | | | | | | | Is the VC dealmaking environment better for startups or investors? | | Using PitchBook's wealth of data on VC deal terms, valuations and fundraising, we've constructed our VC Dealmaking Indicator, which captures how startup- or investor-friendly the deal environment is in the early- and late-stage markets. - To construct the indicator, we encoded five different deal terms as well as the time between rounds, valuation step-ups and percent of ownership acquired. We've also included a new metric that seeks to estimate the supply and demand of capital in the VC market.
- Currently, both the early and late stages are quite startup-friendly, with the recent uptick in median valuation step-ups driving a large portion of that trend. Historically, we see that early-stage deals tend to be more startup-friendly when compared to late-stage deals.
Check out more details about the indicator in a recent analyst note. | | | | | | | | | | | | Health tech stands poised to transform the coming decade | | Health tech is on a tear. 2021 has seen close to 560 completed transactions accounting for $23.8 billion in deal value, just through the end of September. In the latest edition of Deloitte's Road to Next series, the burgeoning health tech ecosystem is explored in depth, especially considering its acceleration by the COVID-19 pandemic and its myriad ramifications. Highlights include: - Analysis of key datasets such as median financing metrics.
- A spotlight on the consumerization of healthcare.
- Insights from experienced health tech Deloitte professionals as to critical growth considerations, regulatory changes and more.
Read it now | | | | | | | | | | Predicting the future for private capital in Europe | |  | | (NicoElNino/Getty Images) | | | At least 15 companies that went through a SPAC merger will be taken private. VC deal value in Europe will smash another annual record. And global carveout deal value will hit a high of €200 billion.
Or so PitchBook analysts predict. Our latest analyst note shares six predictions for European and global private market activity in 2022, including the continuing boom in insurance companies as a source of permanent capital, expected trends in dealmaking and exits, and more. | | | | | | | | | | Private market mega-funds raise more than $329B in 2021 | |  | | (uzenzen/Getty Images) | | | Private equity mega-funds, vehicles of $5 billion or more, had a bumper year in 2021. Hellman & Friedman's latest flagship buyout fund, which raised $24.4 billion, tops a list of 31 private market mega-funds that have together brought in more than $329 billion in 2021, PitchBook data shows.
The growing scale of these behemoths underscores limited partners' appetite for the market's large, established fund managers. That's especially so with buyout funds, which accounted for nearly half of all mega-fund activity in the year. | | | | | | | | | | Ahead of his upcoming retirement, Public Employee Retirement System of Idaho COO Bob Maynard reveals what it was like to take the pension from one of the worst-performing in its peer class to a top-quartile fund. [Institutional Investor]
The digital age has enabled productivity while also inviting procrastination. Can "distraction-free" devices provide a solution? [The New Yorker]
Why a downturn in the property market is bad news for local governments in China. [The Economist] | | | | | | | | | | | Since yesterday, the PitchBook Platform added: | | 461 Deals | 1645 People | 378 Companies | 25 Funds | | | | | | | | | | | | | | | | | | | | 2012 Vintage Global PE Funds between $250M-$500M | | | | | | | | | | | | | Course Hero valuation leaps to $3.6B in new round | | | Edtech platform Course Hero has raised $380 million in a Series C round that values the Redwood City, Calif.-based company at $3.6 billion. Investors previously valued Course Hero at $1.2 billion after an $80 million round last year. Wellington Management led the latest round, with participation by firms including Sequoia, Omers and D1 Capital Partners. | | | | | | | | Cadence scoops up $100M round | | | Healthtech startup Cadence has raised $100 million in a Series B led by Coatue, with participation from existing backers General Catalyst and Thrive Capital. Launched earlier this year, the company provides a remote patient monitoring and virtual care platform designed to track and analyze vital signs like blood pressure, heart rate and glucose levels through daily measurements. | | | | | | | | Insight Partners leads $61M Series C for Carto | | | | | | | | | AnHeart Therapeutics collects $61M for cancer treatment | | | Clinical-stage biotech startup AnHeart Therapeutics has raised a $61 million Series B led by Octagon Capital. Innovent Biologics, Cenova, Laurion Capital and Sage Partners also backed the round. Founded in 2018, the New York-based biopharma company is developing oncology drugs to address unmet medical needs and underserved markets. It will use the new capital in part to advance its lead therapy candidate, a treatment for non-small cell lung cancer. | | | | | | | | Tiger Global backs $50M Mesh round | | | | | | | | | Ophelia snags $50M for opioid addiction treatment | | | Ophelia, a provider of medication-assisted treatment for opioid use disorder, has raised a $50 million Series B led by Tiger Global. Investors including Menlo Ventures, General Catalyst and Refactor Capital also participated. The round values the company at $275 million, Reuters reported. Ophelia is licensed to provide treatment in 27 states and is contracted with Medicaid, Medicare and other commercial insurers. | | | | | | | | | | | | | | | Cybersecurity specialist Guardio picks up $47M | | | Guardio has raised $47 million for its first round of financing after being bootstrapped for three years. The Tel Aviv-based startup provides a security browser extension that stops unwanted notifications, blocks harmful sites, provides information leak monitoring and more. Guardio's tech is already used by more than 1 million people, TechCrunch reported. | | | | | | | | | | | | NYDIG valued at $7B+ with $1B round | | | | | | | | | Brookfield in talks for Intellihub stake | | | Brookfield Asset Management is in negotiations for a stake in Intellihub Group that could give the smart meter company an enterprise value of A$3 billion (about $2.1 billion), as first reported by the Australian Financial Review. Brookfield is reportedly expected to be the winner of an auction held by the Australian company's current owner, Pacific Equity Partners; a deal could be announced sometime this week. | | | | | | | | KKR backs Körber's supply chain software business | | | KKR has acquired a minority stake in the supply chain software business of German technology group Körber. The deal values the unit at $1.7 billion, Bloomberg reported. The warehouse management business offers software, voice and robotics solutions to more than 4,200 customers across 70 countries. | | | | | | | | Bregal Sagemount backs Transflo | | | Bregal Sagemount has invested in Transflo, a provider of cloud-based mobile business intelligence and payments facilitation tools for the transportation industry. Transflo's investors also include True Wind Capital and Carousel Capital, which have backed the Florida company since 2018 and 2013, respectively. | | | | | | | | | Lower-middle-market growth investor Nexa Equity has acquired a majority stake in Maryland-based Leap. The company, founded in 2016, is a provider of sales enablement software for home contractors. Leap's management team and founders will retain a significant stake in the company. | | | | | | | | | | | PitchBook for Dealmakers is built for those investing in, acquiring or advising on private market transactions.
Today's markets are in a constant state of flux, and dealmakers need insights spanning the public and private markets to be effective in their work. To that end, it's vital for dealmakers to have access to both best-in-class data on private companies and broad fundamental public data. Dig into our guide to learn more about PitchBook's utility for dealmakers—from our unmatched capital market coverage to our in-depth reports, collaboration tools and more.
Get the PitchBook for Dealmakers guide | | | | | | | | | | | | NuScale to go public via SPAC | | | NuScale Power has agreed to combine with blank-check company Spring Valley Acquisition Corp. in a deal that will give the combined entity an enterprise value of $1.9 billion. Portland, Ore.-based NuScale, which makes small modular nuclear reactors, could take in $413 million in proceeds from the SPAC deal. Investors in the accompanying PIPE include Samsung C&T, DS Private Equity, Segra Capital Management and Spring Valley sponsor Pearl Energy. Construction specialist Fluor, the majority backer of NuScale, is expected to control around 60% of the combined company. | | | | | | | | Footprint inks merger with Gores SPAC | | | Materials science and sustainability tech company Footprint has agreed to merge with The Gores Group's Gores Holdings VIII in a deal that will give the combined company an enterprise value of $1.6 billion. The merger will also include a PIPE deal with Koch Strategic Platforms and the blank-check company's sponsor. Arizona-based Footprint previously raised funding from investors including Olympus Partners. | | | | | | | | | | | | | | | | | | Who's in the newsletter today? | | Investors | | | | Companies | | | | | | | | | | | | | | | | | |
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