| | | | | The Daily Pitch: VC, PE and M&A | December 1, 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: - Lessen has become the latest unicorn in the real estate tech sector, as the space continues to bounce back from the pandemic.
- VC activity in AI kept growing in Q3, and exit value in the space continues to exceed VC investment in 2021.
- Paris-based Partech has closed its second growth fund as late-stage deals continue to dominate Europe's VC market.
| | | | | | | | | | Why VC exits are beginning to outstrip investment in AI | | VC activity in AI continued growing in Q3, with a record 1,395 deals worth nearly $26 billion in aggregate. Exit activity accelerated, too, with a quarterly record 127 exits also worth nearly $26 billion. While that figure marked a quarterly decline, AI's exit value continues to exceed VC investment in 2021.
Our recent Emerging Tech Research tracks the major storylines in AI and machine learning last quarter, including deep dives on consumer AI, edge AI software and national defense. Among the takeaways: - Through Q3, AI exits have topped $166 billion, more than triple 2020's total value for VC exits.
- Horizontal platforms again led VC deal value, with Databricks, DataRobot, Dataiku and Dataminr all raising rounds over $300 million in Q3.
- Use cases achieving outstanding growth in 2021 include ecommerce recommendation engines, edtech and transportation optimization.
| | | | | | | | | | Lessen joins unicorn herd as VCs build up investments in real estate tech | |  | | (Rudzhan Nagiev/Getty Images) | | | Lessen has raised $170 million in a round led by Fifth Wall to become the latest unicorn in the real estate tech sector, as the space continues to bounce back from a pandemic-induced lull.
VCs are eager to deploy capital in the emerging sector, which has already set an annual record and is on pace to top $20 billion for the first time. | | | | | | | | | | | | Stars in the making: Breaking down the LA venture ecosystem's record year | | At $20.6 billion in 2021 thus far, the LA venture ecosystem has never seen such a profusion of venture capital before. In the latest Bridge Bank report, the drivers of this surge in activity are examined in depth, alongside other highlights including: - A spotlight on e-commerce.
- Financing metrics like valuations and deal sizes.
- Analysis of how the ecosystem is likely to develop in the future, given exits and fundraising momentum.
Read it now. | | | | | | | | | | Partech to boost Europe's growth scene with $750M fund | |  | | (Eoneren/Getty Images) | | | Paris-based tech investor Partech has closed its second growth fund on €650 million (about $750 million) as late-stage deals continue to dominate Europe's VC market.
The new vehicle, which will target up to 15 tech startups, is just one in a flurry of growth-stage funds seen in Europe so far this year. | | | | | | | | | | While investing in the metaverse is still highly speculative, concert venues, shopping malls and other digital properties are getting snapped up by investors prepared for a virtual real estate boom. [The New York Times]
The size of a founder's alumni network—rather than the quality of school—may be the deciding factor in their venture fundraising success. [Institutional Investor]
The work of a Nobel Prize-winning physicist is helping investing pros understand the science behind market manias like GameStop and bitcoin. [Fortune] | | | | | | | | | | | Since yesterday, the PitchBook Platform added: | | 468 Deals | 2005 People | 483 Companies | 42 Funds | | | | | | | | | | | | | | | | | | | | 2012 Vintage Global VC Funds-of-Funds | | | | | | | | | | | | | Tiger Global leads $115M round for trucking startup | | | CloudTrucks has raised a $115 million Series B led by Tiger Global, with support from Menlo Ventures, Flexport and other investors. The new funding values the San Francisco-based startup at $850 million. CloudTrucks offers a logistics platform that helps trucking businesses and entrepreneurs manage load scheduling, payments and more. The company was valued at over $90 million after a $20.5 million round in October 2020, according to PitchBook data. | | | | | | | | Fundbox hits unicorn status with Series D | | | | | | | | | Cycode snags $56M to protect supply chains | | | Cycode, a provider of supply chain security software, has raised a $56 million Series B led by Insight Partners. Existing backer YL Ventures also participated in the round. Cycode's tech integrates with DevOps tools and infrastructure providers to reduce the risk of security breaches, track user activity and more. The company has now raised around $81 million in total funding. | | | | | | | | Sweden's Quinyx lands $50M | | | Battery Ventures has led a $50 million investment in Stockholm-based Quinyx. The startup offers workforce management software to automate scheduling, time reporting, communication, budgeting and forecasting for clients including McDonald's and DHL. | | | | | | | | Brazilian crypto company collects $50M | | | 2TM Participações, a Brazilian cryptocurrency brokerage, has raised $50 million in new funding from 10T, Tribe Capital, PIPO Capital, Gestao de Investimentos, TC Traders Club and Endeavor Brasil, Bloomberg reported. 2TM, which is the parent company of Mercado Bitcoin, has received prior backing from the SoftBank Latin America Fund and reached a valuation of $2.1 billion in July. The capital will reportedly be used in part for expansion into Chile, Colombia, Mexico and Argentina. | | | | | | | | Virtual Incision hauls in $46M Series C | | | Virtual Incision has raised $46 million in a round co-led by Endeavour Vision and Baird Capital, with support from existing investor Bluestem Capital and others. Based in Lincoln, Neb., the company is creating miniaturized robots designed for colon resections, gallbladder removal, hysterectomies and other laparoscopic surgeries. Virtual Incision's MIRA Surgical Platform is currently undergoing clinical study. | | | | | | | | Airbus backs $25M round for Q-CTRL | | | Airbus Ventures has led a $25 million Series B for Q-CTRL, a provider of quantum control engineering solutions. New investor Ridgeline Partners and existing backers also participated in the round. Q-CTRL helps researchers, developers and engineers build quantum computers and quantum sensors. The startup raised $15 million at a $45 million valuation in 2019. | | | | | | | | Abacum scores $25M Series A | | | Atomico has led a $25 million round for Abacum, a San Francisco-based provider of collaborative financial planning and analysis software for tech finance teams. In April, Abacum raised $7 million in seed funding from investors including Y Combinator and Profounders. The startup plans to expand internationally in 2022. | | | | | | | | UK-based Raycast rakes in $15M Series A | | | Raycast, a provider of developer-focused productivity tools, has secured $15 million. Accel and Coatue led the round, which will be used to scale the startup's team and invest in its product. | | | | | | | | | | | | Monomoy Capital to acquire Thetford | | | Monomoy Capital Partners has agreed to acquire Thetford Corporation, a manufacturer of mobile sanitation products for the RV, marine, camping and truck markets. Founded in 1963, Thetford operates globally, with facilities and offices in 10 countries. | | | | | | | | Kohlberg to recap Trinity Life Sciences | | | Kohlberg & Co. has agreed to recapitalize Trinity Life Sciences. Massachusetts-based Trinity provides biotech firms and pharmaceutical companies with advisory services, data-driven insights and technology. | | | | | | | | Cross-Fire acquires fire alarm business | | | AE Industrial Partners-backed Cross-Fire & Security has acquired Alarm & Suppression, a provider of fire suppression, security and life safety systems, fire alarms and fire extinguishers. Alarm & Suppression serves customers in northeastern New York and Vermont. Cross-Fire is a provider of fire and life safety systems. | | | | | | | | | | | | Nubank lowers IPO price range | | | Nubank, a Brazilian neobank, plans to offer 289 million shares for between $8 and $9 apiece, a reduction from its former IPO range of $10 to $11. At $9, Nubank's valuation would be $41.5 billion, a significant decrease from the $50.6 billion the company was hoping to hit previously. | | | | | | | | Thoma Bravo looking to sell software provider Kofax for $3B | | | Thoma Bravo is exploring a $3 billion sale of software provider Kofax, Bloomberg reported. Tech focused-Thoma Bravo originally acquired the Irvine, Calif.-based company in 2017 for about $1.5 billion. | | | | | | | | Snapdeal planning $250M IPO in 2022 | | | SoftBank-backed Snapdeal is planning a 2022 IPO that could raise up to $250 million, Bloomberg reported. The Indian online retailer plans to file for the offering in the coming weeks and is targeting a $1.5 billion valuation, according to the report. | | | | | | | | KKR eyes sale of Germany's GfK | | | KKR is exploring the sale of German market research provider GfK, Bloomberg reported. The firm has hired Goldman Sachs to help find a buyer for the company, the report said. | | | | | | | | | | | | Sapphire Ventures brings in $2B across two growth-focused tech funds | | | Sapphire Ventures has raised nearly $2 billion across two new funds, bringing the firm's total assets under management to $8.8 billion. Sapphire Ventures will continue to invest in enterprise technology companies based in the US, Europe and Israel that are at the Series B through late stages. | | | | | | | | Lightspeed China raises $920M for new funds | | | Lightspeed China has closed $920 million in new capital that will be evenly divided between an early-stage vehicle and a growth fund. The firm plans to focus on sectors including green tech, deep tech and enterprise tech, with an emphasis on companies that have a positive social impact. Lightspeed China's portfolio includes food delivery giant Meituan and trucking platform Full Truck Alliance. | | | | | | | | Lime Rock Partners closes first clean-energy fund at $375M | | | Lime Rock Partners has closed its first fund aimed at growth investments in providers of clean-energy services and products at $375 million, The Wall Street Journal reported. The Houston-based PE firm closed the Lime Rock New Energy fund below its initial $600 million target. | | | | | | | | Speedinvest to target climate tech startups with $90M+ fund | | | Speedinvest has launched an €80 million (about $90.5 million) fund to back sustainability-focused startups. The vehicle, which is expected to close in Q2 2022, will be used primarily for follow-on funding for portfolio companies, with some investments going toward new startups. | | | | | | | | Differential Ventures targets $60M for second vehicle | | | Differential Ventures has launched its second flagship fund with a target of $60 million. The vehicle will be used to back seed-stage data science and machine learning companies that collect, analyze and manage information to change the way businesses operate. The firm's portfolio includes interview assessment specialist Knockri, document automation platform Ocrolus and Databand, a work management system for machine learning projects. | | | | | | | | Singapore's Pluto Capital nabs $30M for crypto investing | | | Singapore-based Pluto Capital has raised $30 million for its crypto fund, which will provide seed funding and incubation to early-stage blockchain projects. The firm will also make select growth-stage investments. | | | | | | | | Rachel Zoe Ventures launches Access Fund | | | Rachel Zoe Ventures, the eponymous firm of fashion designer Rachel Zoe, has launched its second investment vehicle, dubbed the Access Fund. Based in West Hollywood, Calif., RZV is an early-stage firm targeting tech that's disrupting the consumer, subscription and creator economy sectors. RZV has backed startups including zero-waste cleaning company Cleancult and personal safety network Citizen. | | | | | | | | | | | | | | | | | | | | Who's in the newsletter today? | | People | | | | Investors | | | | Companies | | | | | | | | | | | | | | | | | |
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