| | | | | The Daily Pitch: VC, PE and M&A | December 16, 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: - US PE middle-market activity in 2021 has already surpassed that of the previous record year in both deal count and value.
- Our latest Emerging Tech Research explores VC opportunities in climate tech, including energy storage, building efficiency and clean industrial processes.
- VC-backed IPOs of European startups have smashed records in 2021—but public market performance hasn't been as stellar.
| | | | | | | | | | US PE middle market smashes annual records in 2021 | | Middle-market private equity firms have sustained a feverish pace of activity throughout 2021, as investors push to capitalize on booming economic growth and low interest rates before the macroeconomic tide turns.
Going into year's end, dealmaking had already broken annual records in both volume and value, with nearly 2,900 transactions comprising $438.6 billion, according to our Q3 US PE Middle Market Report, sponsored by Antares, Canton & Company, and LBMC. Other takeaways include: - US middle-market exits also continued at a remarkable pace, with a combined $184 billion in value through Q3—also an annual record.
- Inflation remains top of mind for middle-market firms, with increased labor, raw materials and energy costs driving down earnings growth in industries such as manufacturing.
- The fundraising environment favors large funds and established managers, prompting many firms to launch additional middle-market strategies.
| | | | | | | | | | Mapping VC's role on the road to net zero | |  | | (Andriy Onufriyenko/Getty Images) | | | Most greenhouse gas emissions can be reduced using existing technology, but climate tech startups could scale breakthroughs to help close the gap.
VCs and other private investors can provide over two-thirds of the estimated $125 trillion needed to reach the goal of net-zero carbon emissions by 2050, as laid out in the 2021 UN Climate Change Conference.
Our latest installment of Emerging Tech Research explores the outcomes of the summit that are particularly relevant to the climate tech industry. Our analysts also examine investment strategies from the Glasgow Financial Alliance for Net Zero—focusing on energy storage, building efficiency, clean industrial processes and more. | | | | | | | | | | | | Raising capital just got a lot easier | | Savvy founders know that timely cash injections can help scale their businesses or ease short-term difficulties. But traditionally, raising capital hasn't been easy. It can be a lengthy process that requires substantial due diligence, collaboration, relationship building and getting the right information to the right investors at the right time.
Ansarada has created a winning folder template in its AI-powered Data Room, built off the learnings of 24,000-plus successful deals. Sign up for a free trial to get the fastest possible start to your raise with no risk, and select "Capital Raise" as your transaction type. Once you're in, your capital raise template will be there, ready to start working, in your Document Index.
Start now for free | | | | | | | | | | Europe's stellar VC-backed IPO year hides poor performance in public markets | |  | | (d3sign/Getty Images) | | | Europe and Israel have seen an unprecedented flood of VC-backed listings in 2021, but poor performance in the public markets could threaten future IPO activity.
A total of 142 European and Israeli startups have gone public through Dec. 6, raising a total of €92.7 billion (about $105 billion). In contrast to those impressive figures, two-thirds are now trading below listing price, as investors become more cautious toward highly valued startups. | | | | | | | | | | A growing list of business and finance executives are leaving blue-chip jobs to work on tackling climate change. [Financial Times]
In a bad year for biotech stocks, some investors are thriving by focusing on mergers, short selling and vaccine investments. [The Wall Street Journal]
How one European city's innovative approach to mental health is inspiring a global fight against loneliness. [The New York Times] | | | | | | | | | | | Since yesterday, the PitchBook Platform added: | | 501 Deals | 1482 People | 394 Companies | 30 Funds | | | | | | | | | | | | | | | | | | | | 2014 Vintage Global VC Funds | | | | | | | | | | | | | Katie Haun departing a16z to start new crypto fund | | | Katie Haun, a general partner at Andreessen Horowitz, is set to leave the firm to create a new fund that will invest in startups related to cryptocurrency and Web3, as first reported by Axios. Haun, who has been with a16z since 2018 and co-leads its $2.2 billion crypto fund, will reportedly take several colleagues with her. She currently serves on the boards of Coinbase and HackerOne. | | | | | | | | | | | | Home rental startup books $160M Series B | | | | | | | | | Noname Security valued at $1B with $135M round | | | API security startup Noname Security has raised a $135 million Series C at a $1 billion valuation. The financing was led by Georgian and Lightspeed, with support from existing backers such as Insight Partners, Cyberstarts, Next47, Forgepoint and The Syndicate Group. Noname provides an automated platform that detects and responds to API security vulnerabilities, misconfigurations, design flaws and attacks. Operating out of Palo Alto, London and Tel Aviv, the startup has now raised $220 million in total financing since it emerged from stealth a year ago. | | | | | | | | Venture accelerator Brinc nabs $130M | | | Brinc has closed a $30 million Series B round and an additional $100 million for startup investments led by Animoca Brands. Based in Hong Kong, the firm operates 18 multidisciplinary accelerator programs across seven countries, targeting companies in sectors like connected hardware, robotics and clean energy. The new funding will be used in part to support Brinc's expansion into new locations and verticals. | | | | | | | | Customer service startup lands $65M | | | | | | | | | Cequence Security locks down $60M in Series C funding | | | | | | | | | Bill payment startup raises $50M | | | Papaya, the creator of a mobile bill payment app, has raised a $50 million Series B led by Bessemer Venture Partners. Sequoia, Acrew Capital, 01 Advisors, Mucker Capital, Fika Ventures, F-Prime and Sound Ventures also participated. The startup's tech lets users take photos of bills like parking tickets, utilities or medical invoices, choose a payment method, and send it through the Papaya app. | | | | | | | | NEA leads $40M round for Belong Health | | | Philadelphia-based Belong Health has raised a $40 million Series A led by NEA, with participation from seed investor Maverick Ventures. The startup partners with local and regional health plans and hospital systems to deliver Medicare Advantage and Special Needs Plan products. NEA managing general partner Mohamad Makhzoumi will join Belong Health's board of directors as part of the transaction. | | | | | | | | Carbon America loads up with $30M in new funding | | | | | | | | | | | | | KKR puts $398M into PureGym | | | KKR has acquired a £300 million (about $398 million) minority stake in UK fitness club operator PureGym. The deal values the company at more than £1.5 billion and will be used to fund its expansion across Europe, according to a Financial Times report. Leonard Green & Partners will retain a majority stake in PureGym. | | | | | | | | KKR leads $350M Series D for Anchorage Digital at $3B+ value | | | KKR has led a $350 million Series D for Anchorage Digital, a San Francisco-based digital asset platform for institutions and investors. The new funding values Anchorage at over $3 billion. Backers including PayPal Ventures, Andreessen Horowitz, Thoma Bravo and Goldman Sachs also participated. Anchorage offers crypto-native financial solutions including custody and trading, staking, governance and financing services. | | | | | | | | Oaktree, Steve Ballmer invest $315M in Aspiration | | | | | | | | | KKR circling Shriram Capital insurance unit stake | | | KKR is nearing a deal to buy a 10% stake in the general insurance unit of Shriram Capital for about 18 billion rupees (around $237 million), Bloomberg reported. The Indian company is said to be offloading equity ahead of a planned IPO that could debut as soon as next year. | | | | | | | | TPG backs Tel Aviv's UBQ Materials | | | TPG's Rise Climate Fund has led a $170 million investment in UBQ Materials, a Tel Aviv-based developer of climate-positive thermoplastic material. Using a patented conversion process, UBQ turns landfill-destined solid waste into a fully recyclable plastic substitute. | | | | | | | | Brightstar Capital lands deal for trailer manufacturer | | | Middle-market firm Brightstar Capital Partners has partnered with senior management and the company's founder to acquire Novae Corp., an Indiana-based trailer manufacturer. Operating across six brands, the company has more than 1,100 employees and 15 manufacturing facilities. | | | | | | | | Bertram Capital acquires commercial play equipment provider from Halifax | | | Bertram Capital has purchased BCI Burke, a Fond du Lac, Wis.-based manufacturer of playground equipment, from The Halifax Group, which acquired a majority stake in the company in 2017. BCI Burke provides commercial play and outdoor recreation solutions for public parks, educational institutions, early childcare centers and commercial developments. | | | | | | | | Sterling Partners leads $45M investment in Germany's Lecturio | | | Sterling Partners has led a $45 million growth investment in Lecturio, the German provider of a video-based healthcare education platform. Lecturio offers a content base of over 10,000 videos with linked quiz questions, concept pages and a clinical case question bank. Sterling partnered with Inspara Partners on the investment. | | | | | | | | | | Samsara raises $805M in IPO, sees stock climb over 7% | | | Samsara, the developer of a cloud-based fleet and industrial operations management platform, sold 35 million shares priced at $23 apiece in its IPO, raising $805 million in its offering. The San Francisco-based company, which has received backing from Andreessen Horowitz and General Catalyst, saw its stock climb over 7% in its debut. | | | | | | | | | "Despite uncertainty, a healthy pipeline of public listings carrying robust valuations has been established in 2021. Post-money exit valuations via IPO paced well above 2020 figures through Q3 2021, with the median reaching €61.8 million. Through Q3 2021, 135 public listings have produced a record €99.5 billion, triple the previous record set in 2018."
Source: PitchBook's Q3 2021 European VC Valuations Report | | | | | | | | | | | | | Who's in the newsletter today? | | People | | | | Investors | | | | Companies | | | | | | | | | | | | | | | | | |
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