Global fundraising hits $639B through Q2

Venture lending flourishes; Seedrs launches venture partner program; VCs eye healthcare recruiting startups; HiBob brings in $150M
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The Daily Pitch: VC, PE and M&A
August 18, 2022
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Today's Top Stories  
Rising real assets, declining dry powder and other global fundraising trends
Private fundraising totaled $639 billion in H1, roughly on pace to reach 2021's figure. LPs were largely undeterred from making commitments, as record distributions soothed fears about the private markets seizing up and the chance to capitalize on dipping valuations kept investors coming back to the table.

But what does the latter half of the year hold? Our Q2 2022 Global Private Markets Fundraising Report (formerly known as the Global Private Fund Strategies Report) follows the flow of capital, tracking the ups and downs of different strategies. The report, sponsored by Altvia, also includes a spotlight on the state of dry powder. Among the takeaways:
  • PE fundraising grew 46% in Q2 from Q1 to top $137 billion, but the slow exit environment is reducing capital flow back to LPs, potentially hindering future commitments.

  • The uncertain exit landscape, coupled with portfolio markdowns, is also putting pressure on VC fund returns, which may slow new fundraising through the rest of the year.

  • Real assets surpassed $44 billion in Q2, a slight dip from Q1, but 2022 remains on pace to overtake not only 2021's record, but potentially annual totals going back to 2008.

  • Dry powder looks to be on the decline, falling 13% from 2020's high to a total of $3.2 trillion as of June 30, with the trend felt more sharply in private equity.
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Venture lending flourishes amid VC funding pullback
(Watchara Ritjan/Shutterstock)
Once a placid backwater in the startup funding world, venture lending has received more attention in recent quarters as pre-profitable companies resort to debt and other alternatives to stretch their liquidity runways before they gain access to the next equity round.
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A message from Ontra  
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Exclusive: UK crowdfunding specialist Seedrs launches venture program
The Seedrs venture program's first cohort.
(Courtesy of Seedrs)
London-based Seedrs, an equity crowdfunding platform provider, has set up a new program to democratize access to capital and education in Europe's startup ecosystem.

The venture partner program will allow users to share deal flow, knowledge and content to support members and founders.
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Investors target recession-resilient healthcare recruiting startups
(Guschenkova/Shutterstock)
A handful of tech-enabled marketplaces are trying to help solve the US nursing shortage by matching healthcare workers with hospitals. It is a sector that continues to attract investor interest despite the market downturn.

The latest example of VCs' appetite for this space is Incredible Health's $80 million Series B at a valuation of $1.65 billion. Other nursing staffing startups, such as Nomad and CareRev, have also raised sizable rounds in recent months.

In fact, the entire HR tech category is seeing ongoing interest from investors, reaching a record quarterly global deal value of $4.3 billion in Q2 2022.
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Are investors hungry for more alternative proteins?
The alternative protein industry—referring to food, drinks or ingredients made with non-animal sources of protein—has grown dramatically in the past decade, yet recently it has struggled to maintain momentum and is under pressure in the current inflationary environment. Alt-protein startups raised a total of $895 million in Q2 2022, but quarterly deal value is down 59% from the peak in Q3 2021.

Our Emerging Tech Research analyst note explores the rise of cultivated protein along with opportunities in sectors including alternative fat and seafood in the face of shifting market conditions. The report, which includes key VC deals and company spotlights, is now accompanied by a summary data pack containing charts and tables updated through June 30.
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Recommended Reads
A look at the once-hot SPAC market, which last month reached its lowest levels of activity in five years. [The Wall Street Journal]

For the company behind one of last year's buzziest crypto IPOs, selling electricity is now more profitable than mining bitcoin. [Fortune]

How Bill Gates quietly lobbied to save Biden's climate bill. [Bloomberg]
 
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Quick Takes  
  The Daily Benchmark  
  2020 Vintage North American PE Funds  
  VC Deals  
  DriveNets picks up $262M  
  General Atlantic leads $150M Series D for HiBob  
  VidMob collects $110M  
  ThreatX secures $30M  
  PE Deals  
  3Cloud acquires BlueGranite  
  Behrman picks up George Industries  
  PNC Riverarch invests in healthcare compliance specialist MTA  
  OTPP, FountainVest among bidders for EQT's GPA stake  
  Freeman Spogli to back EverVet Partners  
  Exits & IPOs  
  PAG ponders pushing IPO to 2023  
  Fundraising  
  CoinFund launches $300M vehicle  
  Shima secures $200M for debut fund  
  Stage 2 raises $150M for Fund III  
 
 
The Daily Benchmark  
2020 Vintage North American PE Funds
Median IRR
29.13%
Top Quartile IRR
49.58%
1.20x
Median TVPI
Select top performers
Dyal Capital Partners V
Wellington Hadley Harbor Partners III
Clearlake Capital Partners VI
*IRR: net of fees
84 Funds in Benchmark »
Check out the latest version of PitchBook Benchmarks
 
VC Deals  
DriveNets picks up $262M
DriveNets has raised a $262 million Series C led by D2 Investments. The Israeli company's cloud-native software enables telecom providers to build virtual networks that run on cheaper, shared infrastructure.
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General Atlantic leads $150M Series D for HiBob
HiBob has raised $150 million in a round led by General Atlantic. The company provides an HR platform intended to develop and retain talent. Bessemer Venture Partners also participated in the funding.
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VidMob collects $110M
VidMob has raised a $110 million Series D led by Shamrock Capital. The New York-based company offers a performance-tracking platform for marketers.
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ThreatX secures $30M
ThreatX has raised a $30 million Series B led by Harbert Growth Partners. Based in Boston, the company is the developer of an API protection platform designed to detect and manage attacks in real time.
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View 91 competitors »
 
 
PitchBook, NVCA and Beyond the Billion join forces for a deep dive into the state of women funders and founders at next year's SXSW.

Vote for their session "Investing in Inclusion: Women Funders and Founders" in SXSW Panel Picker to make sure they take the stage in March. Voting closes Sunday, Aug. 21.
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PE Deals  
3Cloud acquires BlueGranite
Gryphon Investors-backed 3Cloud has acquired BlueGranite, a data and analytics consulting firm.
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Behrman picks up George Industries
Behrman Capital has acquired George Industries from Orangewood Partners. Based in New York, the company designs and manufactures components for the defense, aerospace and industrial sectors.
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PNC Riverarch invests in healthcare compliance specialist MTA
Medical Technology Associates has received an investment from PNC Riverarch Capital. Florida-based MTA provides medical gas equipment and services to healthcare facilities.
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OTPP, FountainVest among bidders for EQT's GPA stake
The Ontario Teachers' Pension Plan and FountainVest Partners are among the bidders hoping to acquire a stake in packing business GPA Global from Swedish PE firm EQT, Bloomberg reported. The potential deal could value GPA at roughly $700 million to $800 million.
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Freeman Spogli to back EverVet Partners
Freeman Spogli has agreed to invest in EverVet Partners, which acquires and grows veterinary practices; its portfolio includes 21 general practice animal hospitals across 10 US states. Existing investor Tailwind Capital will remain as an equal partner following the transaction.
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Exits & IPOs  
PAG ponders pushing IPO to 2023
Asia-focused PE firm PAG is weighing a delay of its Hong Kong IPO due to stock market volatility and may not go public until next year, Bloomberg reported. The Blackstone-backed investor filed in March for the offering, which could raise up to $2 billion.
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Fundraising  
CoinFund launches $300M vehicle
CoinFund, a Web3- and crypto-focused firm, has launched Ventures I with a target of $300 million. The early-stage fund will seek investments in blockchain.
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View 85 investments »
 
Shima secures $200M for debut fund
Shima Capital has launched its first flagship fund and raised $200 million. The firm invests in blockchain startups at the pre-seed and seed stages.
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View 183 investments »
 
Stage 2 raises $150M for Fund III
Stage 2 Capital has secured $150 million for its third flagship fund. The vehicle will focus on early-stage B2B software and marketplace investments, helping founders with their go-to-market strategies.
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View 28 investments »
 
 
Chart of the Day  
"While these $5 billion+ funds often count on the largest pensions, endowments, and foundations for the bulk of their capital, many allocators are already maxing out their ability to write nine- to ten-figure checks. With so many gargantuan vehicles in the market and a slowing exit environment reducing capital flow back to LPs, it could become more difficult for GPs to find LPs willing to commit large amounts of capital with ease, or close mega-funds or raise funds as smoothly or as quickly as they used to."

Source: PitchBook's Q2 2022 US PE Breakdown
 
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