Web3, DeFi draw top VCs

PE fuels healthcare services deals; agtech IPOs slow to blossom; BlockFi's bankruptcy filing latest in FTX fallout; Russia's Whoosh eyes IPO
Read online | Don't want to receive these emails? Manage your subscription.
PitchBook
Log in
The Daily Pitch: VC, PE and M&A
November 29, 2022
The Daily Pitch is powered by PitchBook's industry-defining research and best-in-class data
Ads
In today's Daily Pitch, you'll find:
  • Our Emerging Tech Indicator tracks which types of tech are attracting the most attention from venture capitalists.

  • The healthcare services industry, touted as recession-proof, continued to attract PE interest through Q3 2022.

  • How private valuations for agtech companies might fare, based on the performance of their public counterparts.
 
Today's Top Stories  
Web3 and DeFi hold VCs' attention as tech investment stumbles
Which technologies are making a splash in the venture world? Check out the latest from PitchBook's Emerging Tech Indicator, which tracks seed and early-stage investment at the world's top-15 most successful VC firms, to gauge which areas of tech—from Web3 and DeFi to healthtech and wellness—are grabbing VCs' attention. Key takeaways include:
  • ETI investment fell for the third consecutive quarter, down 52% from Q4 2021's record of $9.8 billion across 275 deals. However, median size for early-stage deals reversed course in Q3, hitting an all-time peak of about $28 million.

  • Web3 and DeFi topped the charts yet again, notching $879 million. Fintech and biotech followed close behind, while segments like insurtech and mobility gained little traction.

  • The number of venture mega-deals is creeping back up to normal, with 10 ETI deals of $100 million or more recorded in Q3.
read the report
 
Share: Email LinkedIn Twitter Facebook
PE continues to snatch up healthcare services specialists
(Monster Ztudio/Shutterstock)
The healthcare services sector has continued to attract private equity investors this year. While opportunities for platform acquisitions have shrunk, relatively steady add-on activity suggests PE investments are still fueling the consolidation trends in this highly fragmented segment.

PE firms and PE-backed companies completed a total of 725 healthcare services deals in the first three quarters of 2022, according to a PitchBook estimate. That's already higher than 2020's tally, but the pace is unlikely to surpass last year's record, which was an anomaly.

Add-on activity was in line with historical levels, and growth investments remained robust. However, the number of platform acquisitions fell short of the figures recorded for previous years.
read more
 
Share: Email LinkedIn Twitter Facebook
 
A message from DealCloud, by Intapp  
How Balfour Pacific gained a competitive edge by leveraging technology
Balfour Pacific, a Vancouver-based private equity real estate firm, needed a platform that could maintain connectivity and transparency with its team that was often on the road visiting clients and properties.

Download the in-depth case study that showcases how Balfour Pacific better manages its real estate pipeline, relationships, and data using DealCloud's technology.

Read the case study
Share: Email LinkedIn Twitter Facebook
 
Underperforming agtech IPOs could dampen exit prospects
Agriculture technology companies may have to start cutting costs soon as worrying signs abound. Recent IPOs underperformed the S&P 500 by about 10% so far this year, and generally weak stock performance in the sector could also diminish the exit prospects for late-stage VC-backed companies.

Looking inside the companies, many reported shrunken free cash flow in 2021, which could suppress revenue growth as executives look to cut costs. Our latest Emerging Tech Research report on the space lays out agtech comps data through the third quarter, including insights such as which companies are staying profitable—notably, those concerned with animal biotech research.
read it now
 
Share: Email LinkedIn Twitter Facebook
BlockFi bankruptcy is latest fallout from FTX implosion
(Formatoriginal/Shutterstock)
Cryptocurrency firm BlockFi filed for Chapter 11 bankruptcy protection Monday, becoming the latest enterprise to fail as shockwaves spread after the collapse of crypto exchange FTX.

It is the latest event this year to rock the crypto industry, which has been battered by bankruptcies, investor losses and consumer pain. It follows bankruptcy protection filings in July by Celsius Network and Voyager Digital, which both failed after the price of major cryptocurrencies fell sharply.
read more
 
Share: Email LinkedIn Twitter Facebook
Recommended Reads
Business development companies, which lend to private businesses at high interest rates, have become popular in recent years. But it may be time to steer clear of the highly leveraged sector. [Barron's]

Apple and Twitter are facing off as the computer giant cuts back advertising on Elon Musk's platform. [Bloomberg]

Club deals, earn-outs and higher hurdle rates may be back as PE faces pressure. [Institutional Investor]
 
Ads
Since yesterday, the PitchBook Platform added:
380
Deals
1831
People
614
Companies
4
Funds
See what our data software can do
 
Quick Takes  
  The Daily Benchmark  
  2013 Vintage Global Funds-of-Funds  
  A message from PitchBook Media  
  PitchBook's 2023 Media Kit released  
  VC Deals  
  Strand Therapeutics adds $45M to Series A  
  Bionaut Labs secures $43M+  
  V7 raises $33M  
  Range Energy picks up $8M  
  Ejara raises $8M for crypto app  
  Productivity app Amie lands $7M  
  PE Deals  
  Apollo's Yahoo strikes Taboola deal  
  MML Capital picks up OnPoint  
  Exits & IPOs  
  KKR-backed BrightSpring nixes IPO plans  
  E-scooter company Whoosh eyes Moscow IPO  
  Everstone considers exiting Everlife  
  Fundraising  
  Macquarie raises $13B for infrastructure fund  
  Carlyle amasses $3B+ for new European tech fund  
 
 
Ads
The Daily Benchmark  
2013 Vintage Global Funds-of-Funds
Median IRR
19.31%
Top Quartile IRR
24.77%
2.26x
Median TVPI
Select top performers
Bay Hills Emerging Partners III
Glouston Ohio Midwest Fund II
Franklin Park Venture Fund Series 2013
*IRR: net of fees
51 Funds in Benchmark »
Check out the latest version of PitchBook Benchmarks
 
Ads
A message from PitchBook Media  
PitchBook's 2023 Media Kit released
Year to date, PitchBook's newsletters have over 161 million impressions and over 744,000 report downloads. Partnering with PitchBook Media is a way to feature your firm's insights in one of the most popular venues for timely and relevant PE and VC articles, news, asset class reports and custom white label reports.

The brand-new 2023 Media Kit contains all the details to help your firm position itself in front of a VC or PE audience.

Click here to download it today or to speak to someone on the media team.
Share: Email LinkedIn Twitter Facebook
 
VC Deals  
Strand Therapeutics adds $45M to Series A
Biotech startup Strand Therapeutics added $45 million to its latest round, bringing the Series A total to $97 million. New investor FPV Ventures led the financing for the mRNA therapy company.
View round
 
View 50 competitors »
 
Bionaut Labs secures $43M+
Healthtech company Bionaut Labs, which uses tiny robots to treat central nervous system diseases, has raised a $43.2 million Series B led by Khosla Ventures.
View round
 
View similar company »
 
V7 raises $33M
Computer vision startup V7 has raised $33 million in a Series A co-led by Radical Ventures and Temasek.
View round
 
View 3 competitors »
 
Range Energy picks up $8M
Mobility tech company Range Energy, which makes electrified semitruck trailers, has secured $8 million in seed funding from UP Partners, R7 and Yamaha Motor Ventures.
Ejara raises $8M for crypto app
Crypto platform Ejara has nabbed $8 million in Series A funding led by Anthemis Group and Dragonfly Capital.
View round
 
View similar company »
 
Productivity app Amie lands $7M
Berlin-based Amie has secured $7 million in a round led by Spark Capital, TechCrunch reported. The startup offers a scheduling and planning app.
View round
 
View similar company »
 
 
Ads
Don't miss our upcoming webinar
Join us for a webinar discussing key components of the difficult market landscape, including tightening credit and liquidity conditions, slowing growth and sharp increases in short-term interest rates, and how these impact PE.

PitchBook analysts Zane Carmean and Andrew Akers will discuss how rising debt costs combined with continued pullback in financing availability will be a significant headwind moving forward. Key topics include:
  • The window for an economic soft landing has narrowed. Our quantitative recession model predicts that recession odds have risen sharply in recent months.

  • While core inflation has slowed modestly in recent months, it has also broadened out into core services.

  • Although the US is not currently in a recession, growth drivers such as consumer spending and nonresidential business investment have slowed.
Register now to secure your spot.
Share: Email LinkedIn Twitter Facebook
 
PE Deals  
Apollo's Yahoo strikes Taboola deal
Apollo Global Management-backed Yahoo has agreed to obtain a roughly 25% stake in Taboola in exchange for a 30-year commercial agreement. The deal will make Yahoo the largest shareholder in Taboola, which will run advertising on all of Yahoo's online properties.
View deal
 
View 65 competitors »
 
MML Capital picks up OnPoint
MML Capital Partners has acquired OnPoint Industrial Services, which helps oil refineries and chemical companies plan maintenance projects, from Capstreet.
View deal
 
View similar company »
 
 
Exits & IPOs  
KKR-backed BrightSpring nixes IPO plans
Home and community-based healthcare company BrightSpring Health Services filed to withdraw its planned IPO. KKR and Walgreens Boots Alliance purchased BrightSpring for $1.32 billion in 2019.
View details
 
View 18 competitors »
 
E-scooter company Whoosh eyes Moscow IPO
Russian e-scooter company Whoosh is exploring an IPO on the Moscow Exchange which could value it at around 40 billion Russian rubles (about $656 million), Reuters reported.
View details
 
View 2 competitors »
 
Everstone considers exiting Everlife
Everstone Capital has been asking investment banks for selling options for its Singapore-based platform Everlife Holdings, Bloomberg reported. Potential buyers for the healthcare supplier, which seeks a valuation of up to $1 billion, include PE firms and industry peers.
View details
 
View similar company »
 
 
Fundraising  
Macquarie raises $13B for infrastructure fund
Macquarie Asset Management has raised roughly $13 billion for its Super Core Infrastructure fund. The fund invests in core, regulated and network infrastructure.
View fund
 
View 323 investments »
 
Carlyle amasses $3B+ for new European tech fund
The Carlyle Group has raised over $3 billion for a European tech fund, Reuters reported. The vehicle will be used to target between 20 and 30 lower-middle-market and growth companies with equity checks of up to about $260 million.
View details
 
View 2,200 investments »
 
 
Chart of the Day  
Source: 2022 Sustainable Investment Survey
 
About PitchBook | Terms of use | Advertise with us | Contact
Follow us: in twtr fb

This email was sent to pitchbook@quicklydone.com via the PitchBook Platform.

Do you want to change your email address, get a different edition or unsubscribe? Manage your subscription here.

© 2022 PitchBook. Win what's next. All rights reserved.