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| Top valuation step-ups of 2020 dominated by fintech, lockdown-friendly names | |  | | (oatawa/Getty Images) | | | Almost 69% of US deal value in 2020 has come from late-stage deals, according to PitchBook data. That recent investor enthusiasm for more mature businesses has resulted in mega-deals and large valuation increases across a variety of sectors.
We took a look at 20 companies, including Robinhood, Stripe and Instacart, that have had the largest valuation step-ups since the beginning of the year: | | | | | | | | | | What's next for equity crowdfunding? | |  | | (Westend61/Getty Images) | | | The SEC has highlighted an emerging avenue to fundraising with the recent expansion of equity crowdfunding, which had shown only tepid adoption in the US since the first federal regulations were enacted in 2016.
By increasing the cap on fundraising from just over $1 million to $5 million, the updated rules may help entice more companies to embrace crowdfunding campaigns when raising cash.
The ultimate impact of the new limit may not be seen immediately, PitchBook analysts report, but with crowdfunding records already being broken during the pandemic, the interest is there to bring this once-fringe option into the mainstream: | | | | | | | | | | Bertelsmann set to buy US publisher Simon & Schuster | |  | | (Ben Pruchnie/Getty Images) | | | Penguin Random House-owner Bertelsmann is to buy New York-based publisher Simon & Schuster from ViacomCBS for over $2 billion, according to Reuters.
Following the deal, the German group would hold nearly a third of the US publishing market by revenue. Bertelsmann beat out Rupert Murdoch’s News Corp and French media group Vivendi for the company, which ViacomCBS put up for sale in March in order to refocus on its core assets.
Rival book publishers, including News Corp-owned HarperCollins, have raised antitrust concerns should the acquisition go ahead, according to the Financial Times. Critics have said that Bertelsmann would exert too much power in specific genres, particularly hardcover fiction. Simon & Schuster publishes some of the world’s bestselling authors including Dan Brown and Stephen King.
Bertelsmann is already the world’s largest book publisher by revenue through Penguin Random House, reporting €3.6 billion in revenue in 2019. The group agreed last December to acquire the remaining shares in Penguin from UK-based peer Pearson for $675 million, giving it full ownership. | | | | | | | | | | There's an oligopoly in asset management. One former staff member at the Federal Reserve says it should be broken up. [Institutional Investor]
The US sports industry has a Generation Z problem. Will the pandemic make it worse? [The Washington Post]
Nepal is once again welcoming climbers to Mount Everest after closing its mountains in March. Getting them to come is another story. [Bloomberg] | | | | | |
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| | Since yesterday, the PitchBook Platform added: | | 422 Deals | 1560 People | 460 Companies | 18 Funds | | | | | | |
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| 2012 Vintage Global Funds-of-Funds | | | | | | |
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| PitchBook Webinar: A closer look at DACH private market activity in 2020 | | Join us Dec. 2 for a webinar on 2020 private market activity in the DACH region. During the discussion, PitchBook analysts will explore: - The main drivers behind an uptick in PE deal activity
- How exits and fundraising have performed during the pandemic
- What has driven VC investment to new heights across the region
Register to secure your spot | | | | | | | |
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| Hippo raises $350M from Japanese insurer | | | Palo Alto-based home insurance startup Hippo has taken in $350 million from Mitsui Sumitomo Insurance Company to support its US expansion plans. Japan-based Mitsui Sumitomo is a subsidiary of MS&AD, whose corporate venture arm invested in a $150 million Series E in July that valued Hippo at $1.5 billion. Along with the new investment, the two companies will sign a reinsurance treaty that transfers some of Hippo's risk to Mitsui Sumitomo. Hippo has received prior backing from investors including Zeev Ventures, RPM Ventures and Horizons Ventures. | | | | | | | | Current banks $131M Series C | | | Tiger Global has led a $131 million round for Current, a challenger bank offering services such as direct deposits, cash back and free overdraft options. Founded in 2015, the New York-based company's platform is used by over 2 million members. Current has raised more than $180 million in total private funding and is now valued at $750 million. | | | | | | | | Well Health brings home $45M | | | Well Health, the developer of a patient communication platform, has raised a $45 million Series C led by Lead Edge Capital. Founded in 2015, the Santa Barbara, Calif.-based company was valued at $39.3 million in 2018, according to PitchBook data. | | | | | |
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| BlackRock strikes $1B+ pact for Aperio | | | BlackRock has agreed to acquire Aperio, a provider of investment management services, from Golden Gate Capital for $1.05 billion in cash. The deal comes after Golden Gate acquired San Francisco area-based Aperio in 2018. | | | | | | | | Apollo hits more resistance in bid to buy casino operator | | | | | | | | | First Reserve to snag Goldfield for $194M | | | First Reserve has agreed to acquire Goldfield, a Florida-based provider of electrical maintenance services for the utility and industrial sectors, for $7 per share, or roughly $194 million, including debt. The deal marked a 64% premium to Goldfield's closing price Monday and a 57% premium to the stock's 30-day volume-weighted average. | | | | | |
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| Stripe sets sights on $100B valuation | | | Payments giant Stripe is in discussions to raise new capital that could value the company at more than $70 billion and potentially up to $100 billion, according to Bloomberg. Stripe has an estimated valuation of $36 billion, already making it one of the most valuable private companies in the US, according to PitchBook data. Earlier this year, it pocketed an additional $600 million for its Series G. | | | | | |
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| Jay-Z joins cannabis SPAC deal | | | | | | | | | L Catterton to dish out popular hot sauce for $800M | | | L Catterton has agreed to sell Cholula, a Jalisco, Mexico-based maker of hot sauce, to food conglomerate McCormick & Company for $800 million. L Catterton has backed Cholula since acquiring the company in April 2019. | | | | | | | | Metromile to go public via SPAC merger | | | Metromile has struck a deal to combine with blank-check company Insu Acquisition Corp. II. The agreement values the combined company at around $956 million and includes a $160 million PIPE investment led by Social Capital. Metromile runs an auto insurance platform and was valued at $540 million in 2018, according to PitchBook data. | | | | | | | | Luxury retailer Mytheresa files for US IPO | | | Online luxury retailer Mytheresa has filed confidentially for a US IPO. The company could reportedly seek a valuation of between $1 billion and $1.5 billion. Based in Germany, Mytheresa sells clothes from brands including Gucci, Dolce & Gabbana and Prada. | | | | | | | | Russia's Ozon raises nearly $1B in IPO | | | Online retailer Ozon saw its shares jump 34% in its Nasdaq debut after it raised $990 million in its IPO. Shares in the Moscow-based company closed at $40.18 per American depository share, above the $30 IPO price. Ozon, which is backed by PE firm Baring Vostok and Russian conglomerate Sistema, had initially planned to sell 30 million shares at between $22.50 and $27.50 apiece. | | | | | |
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| Day One Ventures raises $52.5M fund | | | San Francisco-based Day One Ventures has brought in $52.5 million for its second fund, according to a regulatory filing. The VC firm's portfolio includes fintech startups Atom Finance and Truebill, as well as social media company YOLO. Day One takes its name from a mantra coined by Amazon CEO Jeff Bezos that encourages the company to approach every day with a startup mentality. | | | | | |
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| BroadPeak Global makes debut | | | | | | |
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"The plethora of software deals has also elevated overall PE deal multiples, which now sit near all-time highs, higher since dealmakers often pay up for quickly growing businesses. For additional context, most deals that appear in our multiples dataset were likely negotiated in 2019. As software becomes a greater focus within PE, we expect more generalists to enter the fray and for multiples to remain aloft."
Source: PitchBook's Q3 2020 US PE Breakdown | | | | | |
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