Foodtech funding wanes

Add-ons dominate European buyout market; brushing up on term sheets; Landing bags $125M for subscription-based apartments
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The Daily Pitch: VC, PE and M&A
August 26, 2022
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In today's Daily Pitch, you'll find:
  • Add-ons are dominating the European buyout market as sponsors build up their current assets to weather the downturn.

  • VC funding for foodtech companies fell in Q2 amid a broader slowdown in venture activity, according to our Emerging Tech Research.
 
Today's Top Stories  
Foodtech funding falls as VC appetite for dealmaking diminishes
VC funding for the foodtech industry continued to experience a pullback amid macroeconomic headwinds in Q2. Startups around the world raised $5.6 billion across 275 deals—representing quarter-over-quarter drops of 21.5% and 32.8%, respectively.

Our recent Emerging Tech Research update provides a detailed look at the foodtech landscape, exploring industry opportunities like ghost kitchens and molecular ingredients. Takeaways include:
  • The foodtech sector recorded a rise in exits, particularly acquisitions—as market volatility impacted fundraising for many startups, in turn boosting opportunities for strategic acquirers.

  • Despite the funding dip, valuations and deal sizes continued to surge to new highs, with pre-money valuations up at every VC stage.

  • Inflation and shifting consumer spending habits may create a tailwind for ecommerce-focused food suppliers that can minimize delivery and service fees.
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Add-ons dominate European buyout market with B2B leading the charge
(paulaphoto/Shutterstock)
Add-ons have accounted for the largest portion of European buyouts this year, as sponsors look to consolidate positions in certain markets.

While financial services snagged the add-on deal with the largest price tag, B2B and IT have dominated so far this year, accounting for 35.9% and 26.9% of total buyout deal value, respectively.
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A message from Ansarada  
Ansarada's Indicators data helps make sense of an uncertain market
Ansarada uses hundreds of thousands of anonymized data points to reveal emerging trends across deal types and industries in the new Deal Indicators Report.

Launched this week, the report is based on insights gathered through Ansarada's platform throughout the financial year. By including deals that are active and ongoing, Indicators is able to point to trends an average of 6-12 months before they're announced to the market.

Transactional insights surfaced in Indicators reveal a stabilization of the post-COVID boom, with an 8% decrease QoQ in new M&A deals, and a 25% increase in bankruptcies and insolvencies globally.

Read the full report for more, including capital raising, IPO, targeted acquisitions, impact on deal durations and M&A bidder groups, and in-depth industry breakdowns.

Download the FY23 Deal Indicators Report
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Are you on top of term sheets? Take our quiz
(Jenna O'Malley/PitchBook News)
For the first time since 2020, valuations and deal terms are trending in investors' favor. Entrepreneurs will have to adapt.

This brave new world is bringing back investor-friendly deal terms, several of which had fallen out of fashion in recent years. Consider this quiz your primer for venture capital's new reality.
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Recommended Reads
The story of what happened when one private equity firm took over a nursing home. [The New Yorker]

How deadly bacteria spread in a Similac factory—and caused the US formula shortage. [Bloomberg]

More than $100 million worth of NFTs were reported stolen in scams over the past year, underscoring officials' worries that they could present new paths for laundering money. [The Wall Street Journal]
 
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Quick Takes  
  The Daily Benchmark  
  2011 Vintage Global Funds-of-Funds  
  VC Deals  
  Thirdweb hits $160M valuation  
  Landing picks up $125M for subscription-based apartments  
  Aktis Oncology adds $84 million to Series A  
  3T Biosciences launches with $40M Series A  
  Goldcast picks up $28M  
  Fair Square Medicare banks $15M  
  Avenda scoops up $10M for AI-driven cancer treatment  
  Headroom collects $9M  
  PE Deals  
  11:11 Systems to buy Sungard Availability Services unit  
  PE-backed GoEngineer acquires Computer Aided Technology  
  Northstar Capital backs IronCraft  
  Prestige Medical Imaging lands MedServ Plus, XRV Healthcare  
  PE-backed Excel Fitness buys 14 Planet Fitness locations  
  Blackstone looks to buy Pink Floyd's back catalog  
  Investors  
  Blackstone launches West Coast team  
 
 
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The Daily Benchmark  
2011 Vintage Global Funds-of-Funds
Median IRR
16.55%
Top Quartile IRR
20.30%
2.08x
Median TVPI
Select top performers
Franklin Park Venture Fund Series 2011
Weathergage Capital Investments A
Venture Investment Associates VII
*IRR: net of fees
56 Funds in Benchmark »
Check out the latest version of PitchBook Benchmarks
 
VC Deals  
Thirdweb hits $160M valuation
Thirdweb has raised a $24 million Series A at a $160 million valuation in a round led by Haun Ventures. The company provides software development tools for building Web3 apps.
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View similar company »
 
Landing picks up $125M for subscription-based apartments
Landing has raised a $125 million Series C led by Delta-v Capital. The company operates a network of subscription-based apartments across more than 375 cities in the US.
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View 13 competitors »
 
Aktis Oncology adds $84 million to Series A
Aktis Oncology has gained a $84 million Series A extension from investors including ArrowMark Partners and Cowen Healthcare Investments. Based in the Boston area, the company develops targeted radiopharmaceuticals designed to treat a broad range of solid tumor cancers.
View round
 
View 1 competitors »
 
3T Biosciences launches with $40M Series A
3T Biosciences has raised $40 million in a round led by Westlake Village BioPartners, with participation from Lightspeed. Based in the Bay Area, the company is developing therapies for the treatment of solid tumors and other immune-mediated diseases.
View round
 
View similar company »
 
Goldcast picks up $28M
Goldcast has raised $28 million in a Series A led by WestBridge Capital, with support from Unusual Ventures. Based in the Boston area, the company helps B2B marketers host interactive virtual and hybrid events.
View round
 
View similar company »
 
Fair Square Medicare banks $15M
Fair Square Medicare has raised $15 million in a Series A led by Define Ventures. Based in San Diego, the company helps older adults find health insurance plans.
View round
 
View similar company »
 
Avenda scoops up $10M for AI-driven cancer treatment
California-based Avenda Health has raised a $10 million Series B led by VCapital to further develop its AI-based technology for diagnosing and treating prostate cancer.
View round
 
View 3 competitors »
 
Headroom collects $9M
Equal Opportunity Ventures has led a $9 million investment in Headroom, bringing the company's total funding to $14 million. Headroom offers a virtual meeting platform with AI-generated highlight reels and action items.
View round
 
View similar company »
 
 
PE Deals  
11:11 Systems to buy Sungard Availability Services unit
11:11 Systems, a managed infrastructure solutions provider backed by Tiger Infrastructure Partners, has agreed to acquire the cloud managed services business of Sungard Availability Services.
View details
 
View 5 investments »
 
PE-backed GoEngineer acquires Computer Aided Technology
Court Square Capital Partners-backed 3D design provider GoEngineer has acquired Computer Aided Technology, a Chicago-based product developer of 3D software and 3D printing hardware.
View deal
 
View 30 competitors »
 
Northstar Capital backs IronCraft
Northstar Capital has invested in IronCraft, an LFM Capital-backed provider of attachments for agricultural equipment and more.
View deal
 
View similar company »
 
Prestige Medical Imaging lands MedServ Plus, XRV Healthcare
Prestige Medical Imaging, a radiology services provider backed by Atlantic Street Capital, has acquired fellow medical imaging specialists MedServ Plus and XRV Healthcare.
View deal
 
View similar company »
 
PE-backed Excel Fitness buys 14 Planet Fitness locations
Olympus Partners-backed Excel Fitness has acquired 14 Planet Fitness locations in Eastern Virginia from the KSMA group. The deal brings Excel's franchise count to 107 Planet Fitness locations.
View deal
 
View 14 competitors »
 
Blackstone looks to buy Pink Floyd's back catalog
Blackstone is seeking to buy Pink Floyd's back catalog in a transaction that could be worth almost $500 million, the Financial Times reported. The deal would be done via Blackstone-backed Hipgnosis Song Management.
View deal
 
View similar company »
 
 
Investors  
Blackstone launches West Coast team
Blackstone has announced the launch of a branch in San Francisco. Sachin Bavishi, a senior managing director, will relocate from New York to establish and lead the company's West Coast presence.
View details
 
View 1,702 investments »
 
 
Chart of the Day  
Source: PitchBook's Q2 2022 Global Private Markets Fundraising Report
 
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