Monday, October 19, 2020

PE in the age of COVID-19

Remote care drives VCs to healthtech; Menlo Ventures unveils $500M fund; Agility raises $20M for humanoid robots; RedBird Capital adds Goldman alum
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The Daily Pitch: VC, PE and M&A
October 19, 2020
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Today's Top Stories
PE in the age of COVID-19: Read the latest Private Market PlayBook
As the months go by, the effects of the pandemic are rippling through the private markets, shifting some trends and shining new light on others.

The state of private equity in particular is a focus of the Q3 edition of the Private Market PlayBook. Other highlights include:
  • As live college sports take a timeout, esports score big on virtual campuses

  • Diverse managers spread a message of fiduciary duty and social justice

  • Lab-grown meat is full of promise but years away from dinner plates
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Shift to remote care pushes healthtech funding to new heights
(Yoshiyoshi Hirokawa/Getty Images)
Startups that help patients access healthcare remotely are driving a wave of healthtech investment in 2020. VC investors in the US and Europe injected $10 billion into healthtech companies in the first three quarters of the year, according to Silicon Valley Bank.

The interest has ignited a string of mega-rounds for startups that could energize fields like medication management and remote patient monitoring:
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A message from Velocity Global
How venture maximizes ROI and slows cash burn rate during global expansion
Velocity Global
International expansion is a valuable growth strategy for portfolio companies, and it's never been more accessible. Traditional global expansion methods are complicated, time-consuming, costly and counterproductive to what VC investors need—maximum ROI. A new global hiring method helps investors and their portfolio companies quickly build teams overseas, gain market share and shorten time to ROI.

Read Velocity Global's new guide, Maximize Your ROI: A Guide to Your Portfolio Companies' International Success, for crucial insights into how this solution helps portfolio companies:
  • Slow the cash burn rate and extend runway during global expansion
  • Protect valuable intellectual property
  • Secure top talent anywhere in the world
This guide offers advice for high-growth companies that need a fast, flexible, risk-averse and cost-effective global expansion strategy.

Download the guide
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Recommended Reads
Diving deep into the thorny problem of why Facebook may not be able to fix itself. [The New Yorker]

The pandemic means that, for many, international travel still isn't an option. For Canada's snowbirds, it's making for tough sledding. [The Wall Street Journal]

If robots are going to take all our jobs, do we really need jobs at all? [Team Human]
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Quick Takes
  The Daily Benchmark  
  2014 Vintage Global Venture Funds  
  People  
  RedBird tabs Goldman alum to run West Coast office  
  VC Deals  
  Sonrai secures Series B  
  Humanoid robotics startup raises $20M  
  PE Deals  
  Avista assists Arcadia add-on  
  Arena Capital backs Retro Fitness  
  Exits & IPOs  
  Ardian offloads Austrian business  
  Fundraising  
  Menlo Ventures unveils latest $500M fund  
  Corporate M&A  
  ZoomInfo seals post-IPO takeover  
 
 
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The Daily Benchmark
2014 Vintage Global Venture Funds
Median IRR
17.70%
Top Quartile IRR Hurdle Rate
24.10%
1.73x
Median TVPI
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Earlybird Digital East Fund
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45 Funds in Benchmark »
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People
RedBird tabs Goldman alum to run West Coast office
RedBird Capital Partners has announced plans to open an office in Los Angeles, with newly hired partner Andy Gordon set to run the location when he starts work in February 2021. Gordon has spent the past 35 years at Goldman Sachs, where his most recent titles included global chairman of investment banking services.
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VC Deals
Sonrai secures Series B
Sonrai Security has raised $20 million in Series B funding led by Menlo Ventures, with participation from existing investors Polaris Partners and Ten Eleven Ventures. The new round brings the cloud security startup's total VC funding to more $38 million. New York-based Sonrai was valued at $53.5 million with its Series A in 2019, according to PitchBook data.
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Humanoid robotics startup raises $20M
Agility Robotics has closed a $20 million round co-led by DCVC and Playground Global. The Oregon-based maker of legged, walking robots plans to use the funds to meet growing automation demand from ecommerce retailers, logistics providers and others. DCVC co-founder and co-managing partner Matt Ocko will join Agility's board. Agility was valued at $25 million in 2018, according to PitchBook data.
Additional investors:
Industrial Technology Investment, MFV Partners, Safar Partners, Sony Innovation Fund, TDK Ventures
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PE Deals
Avista assists Arcadia add-on
Arcadia Consumer Healthcare has completed its acquisition of Naturelo, a seller of natural vitamins and supplements that's based in Seattle. Arcadia is a portfolio company of Avista Capital Partners.
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Arena Capital backs Retro Fitness
Arena Capital Partners has invested in Retro Fitness, a Florida-based operator of fitness chains. The funding will be used to help the company expand with 10 to 12 locations in the Boston area.
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Exits & IPOs
Ardian offloads Austrian business
Ardian has sold electronic access specialist Gantner Electronic to Salto Systems, exiting a business it has owned since 2016. Gantner is an Austrian company that develops electronic access systems, smart locks and related technology, while Salto is a Spanish developer of access control technologies.
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Fundraising
Menlo Ventures unveils latest $500M fund
Menlo Ventures has launched its 15th fund, a $500 million vehicle that will focus on seed and Series A investments in consumer, enterprise, frontier tech, and healthcare companies. The Menlo Park-based firm also plans to keep its eye on other areas of interest, including cybersecurity, AI and fintech. Menlo closed its most recent flagship fund on $450 million in 2017.
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Corporate M&A
ZoomInfo seals post-IPO takeover
Business intelligence company ZoomInfo has purchased Clickagy, a Georgia-based provider of AI-powered data on buyer intent. Based in Vancouver, Wash., ZoomInfo went public on the Nasdaq in June. Last year, the company received backing from The Carlyle Group and TA Associates.
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Chart of the Day
Source: PitchBook's Q2 2020 US PE Middle Market Report
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