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In today's Daily Pitch, you'll find: - Our 2022 All In Report breaks down the data on female founders and investors' successes—and continued challenges.
- Elevated oil and gas prices and other dynamics supported the pace of private equity exits in the industry in Q3, while other sectors' dealmaking declined.
- A joint survey from PitchBook and Web Summit explores how rising inflation is changing—or not changing—VCs' investment strategies.
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| Female founders remain resolute amid mounting economic pressures | | US VC deal value for female founders reached $32.4 billion through the third quarter of 2022, already more capital than any year prior to 2021, which saw record highs.
On the check-writing front, the numbers underscore that the industry is still a long way from equal gender and diversity representation. Female investors account for just 16.1% of VC decision-makers in the US. Furthermore, 95.5% of VC firms have a majority male population of decision-makers.
The latest edition of our All In Report, created in partnership with Beyond The Billion and sponsored by J.P. Morgan, Apex Group and Pivotal Ventures, breaks down the numbers by city, sector and exit activity. | | | | | | | | | Energy sector PE exits flowed in Q3 while others faltered | |  | | (JustPixs/Shutterstock) | | | Private equity exits were down across the board in the third quarter, but the comparatively solid volume of energy industry exits in the period provided a glimmer of light for investors in an otherwise gloomy landscape.
The energy sector hasn't been immune to the broader downturn in PE exit activity in 2022. But unlike healthcare, IT and financial services, where exit activity slowed dramatically from Q2 to Q3, energy dipped only slightly, according to data in our latest PE Breakdown. | | | | | | | |
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| Does your FX hedging hold up against rising currency volatility? | | With the U.S. dollar at a 20-year high and still rising, today's volatile currency markets can threaten your bottom line. Middle-market businesses must plan ahead to ensure their hedging policy can keep currency volatility within a predictable range.
To help evaluate your existing hedging strategy and make any critical updates, Citizens' new article outlines how you can: - Articulate goals and objectives
- Identify and analyze exposures
- Design and implement a hedging strategy
- Review and monitor the updated program
Optimize your hedging program | | | | | | | |
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| Fintech players prize consumer experience, security as risk appetite decelerates | | Investors, experts, innovators and regulators gathered last week at Money20/20 in Las Vegas, one of the largest fintech conferences in the world, to discuss their top priorities amid a more cautious economic environment.
In our latest analyst note, PitchBook analysts Rudy Yang and James Ulan share insights on the fintech, payments and cryptocurrency sectors, including: - The Consumer Financial Protection Bureau announced plans to explore open banking regulation, which should increase competition, benefit fintech companies and pressure traditional financial institutions.
- Company leaders are working hard to combat fraud, protect user data and prioritize the consumer experience during product development.
- Investors spoke of the need to lessen risk amid pressure from LPs to limit losses. This caution was balanced by a predisposition to remain open to bold investments and an expectation that the markets will not remain in a slump indefinitely.
| | | | | | | | | VCs unfazed by rising inflation, says Web Summit survey | |  | | (Joel Calheiros/Shutterstock) | | | Rising inflation may be wreaking havoc on global economies, but it isn't impinging on investment strategies, VCs say.
A new survey by PitchBook and tech conference Web Summit has found that 35% of venture investors say they haven't changed their investment approach. | | | | | | | | | October distressed debt volume tops $100B, while leveraged loan default rate holds slim | |  | | (Leonid Ikan/Shutterstock) | | | Distress levels in the $1.45 trillion US leveraged loan market jumped in October as institutional investors continued to shun risk, and amid a slew of credit downgrades.
The roughly $100 billion in outstanding leveraged loans currently bid at less than 80 cents on the dollar in the trading segment—a traditional marker of loan distress—is the most since 2020, in the wake of the pandemic onset, according to the Morningstar LSTA Leveraged Loan Index.
The rising distress level comes as the loan default rate remains well below its historical average. Many issuers last year refinanced existing debt, pushing off upcoming maturities and potential credit issues. | | | | | | | | | Investors' big plans for generative AI | |  | | An abstract illustration made with Stability AI's Stable Diffusion. (Michaus/Shutterstock) | | | In 2011, IBM's Watson supercomputer beat two champions in a game of "Jeopardy!" The company then spent the next decade, and billions of dollars, trying to use Watson's AI capabilities to solve a broad set of healthcare challenges, from helping doctors diagnose diseases to recommending clinical trials.
That effort failed—in January, IBM announced it was selling Watson for parts to PE firm Francisco Partners. AI technologies have come a long way since that game show triumph. Over the last year, machines suddenly became good at generating images and writing text.
Although this so-called generative AI often creates text bearing the signs of a machine, many investors are convinced the new technology will usher in a productivity revolution across various industries and forge massive companies along the way. But those aspirations may collide with AI's long history of underdelivering on expectations. | | | | | | | | | | Why are some hospital systems replacing their CIOs with banks like Morgan Stanley? [Institutional Investor]
One writer's thoughts on why the blocked merger of Penguin Random House and Simon & Schuster is a radical step forward for American jurisprudence. [The Atlantic]
After decades of research, engineers are totally rethinking the design of passenger planes. [The Wall Street Journal] | | | | | |
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| | Since yesterday, the PitchBook Platform added: | | 487 Deals | 2126 People | 651 Companies | 35 Funds | | | | | | |
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| 2020 Vintage Global PE Funds with more than $1B | | | | | | |
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| Alation brings in $123M Series E | | | | | | | | AMP Robotics secures $91M | | | | | | | | Lusaris Therapeutics launches with $60M Series A | | | | | | | | | | Roam has emerged from stealth with $30 million in a round led by IVP, TechCrunch reported. The company uses a cloud-based network of apps and search engines to help remote organizations manage operations. | | | | | | | Concerto Biosciences picks up $23M Series A | | | Concerto Biosciences has raised $23 million in a round led by Safar Partners. Founded in 2020, the biotechnology company designs microbial communities to restore deficient microbiomes and treat diseases such as atopic dermatitis. | | | | | | | Carta Healthcare locks in $20M | | | | | | | | HR tech startup GoCo raises $15M | | | Houston-based GoCo has raised $15 million in a round led by ATX Venture Partners. GoCo's HR software can manage benefits, payroll and more. | | | | | |
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| Oak Hill Advisors-led group invests $1.8B in forests | | | | | | | | RedBird, Madrone sell Wasserman stakes to Providence | | | | | | |
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| CenterOak flips Wetzel's Pretzels for $207M | | | | | | | | Sun Capital to sell UK glass producer to Verallia | | | Sun Capital Partners has agreed to sell Allied Glass to French glass packaging producer Verallia Group at an enterprise value of £315 million (about $358.6 million). UK-based Allied, which specializes in manufacturing premium glass bottles in short production runs, was first acquired by Sun Capital in 2019. | | | | | |
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| Sixth Street raises $4.4B for growth investments | | | Sixth Street has held the final close of multiple growth funds at their hard caps, having received $4.4 billion in total. The private equity firm is targeting fast-growing companies in their mid-to-late stages of growth. | | | | | |
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| Apollo's Athene lends $300M+ to Tiger Global | | | Athene, an insurance business of Apollo Global Management, has lent at least $330 million to venture capital firm Tiger Global, Bloomberg reported. The loans are mainly secured by Tiger's stakes in private companies, according to the report. | | | | | |
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"Across respondent types, lack of clarity around how to define and measure Impact outcomes, lack of robust data on ESG factors for PE companies, and difficulty benchmarking non-financial goals were frequently cited among the top three challenges of sustainable investing."
Source: 2022 Sustainable Investment Survey | | | | | |
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