| |
In today's Daily Pitch, you'll find: - An analysis of why VC valuations rocketed to new heights in Q2 2021.
- How private equity buyouts in cybersecurity are hitting new records as the industry responds to remote working and hackers.
| | | | | |
|
| |
| US VC valuations reach unprecedented levels | | Record levels of dry powder and a fierce influx of nontraditional investors into the venture ecosystem have buoyed VC-backed company valuations to record heights in the second quarter of this year.
PitchBook's latest US VC Valuations Report examines how startup valuations across the venture lifecycle and sectors have changed in 2021. Key takeaways include: - Early-stage pre-money valuations notched records in Q2, with a median and average of $50 million and $105.4 million, respectively.
- At the late stage, the median and average valuations hit $160 million and $882.4 million, respectively, representing a sharp increase from values recorded in previous years. The value growth is partly driven by investor willingness to write increasingly larger checks to pre-IPO companies.
- Exit valuations grew at a decade-record rate, with median acquisition and public listings step-ups of 2.2x and 1.7x, respectively, from their last private market values.
| | | | | | | | | | Hackers, remote workers spur record PE investment in cybersecurity | |  | | (Olemedia/Getty Images) | | | Private equity buyouts in cybersecurity are hitting new records as a fast-growing industry responds to a surge in remote working and increasingly sophisticated cyberattacks. - PitchBook's Q2 2021 US PE Breakdown revealed cybersecurity deals have swelled in terms of deal value over the past six quarters, and have spiked in 2021 thanks to a handful of blockbuster pacts.
- Announced in April, Thoma Bravo's $12.3 billion acquisition of Proofpoint set a record for the largest cybersecurity buyout ever, and was larger than all cybersecurity buyouts in the third and fourth quarters of 2020 combined.
- Factoring in the Proofpoint buyout and the $900 million acquisition of ExtraHop by Bain Capital and Crosspoint Capital Partners in June—both of which have been agreed to but not yet completed—cybersecurity buyouts have already reached $23 billion combined in 2021. More deals are expected.
| | | | | | | |
|
| A message from NetSuite and ContinuServe | | |
| NetSuite and ContinuServe join forces to deliver carveouts at deal speed | | ContinuServe uses NetSuite technology to deliver carveouts in a new solution that brings the leading cloud-based enterprise resource planning solution together with a premier business process outsourcing provider.
ContinuServe acquires NetSuite on behalf of the client and drives the technology carveout using proprietary tools to stand up a functional enterprise class NetSuite solution faster than comparable solutions. Once the business is operational, ContinuServe seamlessly transitions ownership of the system without a need for reimplementation or data migration, reducing risk and financial strain on both the private equity firm and the carveout.
NetSuite's preconfigured industry-specific ERP solution is the leading cloud-native solution and the No. 1 solution for carveouts.
To learn more about this new solution and how it drives value, download this compelling white paper. | | | | | | | |
|
| Senior female VCs call out major funding disparity in Europe | |  | Experior VC partner Kinga Stanislawska is one of the women behind a report showing a major funding gap for female investors in Europe.
(Noam Galai/Getty Images) | | | A group of prominent women VCs in Europe is calling for more capital to go to female-led vehicles to help support female-founded startups. - Despite a record amount of capital invested this year, European female founders have received only 0.7% of the total funding.
- A recent report put out by European Women in VC found that a major block to gender parity for women-led startups is the lack of female general partners in European firms.
- The group is aiming to have at least 30% of the available LP and funds-of-funds capital go to women-led vehicles within the next five years.
| | | | | | | | | | More and more startups are choosing to play it safe and slow by rejecting their highest VC offers in favor of lower-priced deals. [The Information]
What the pandemic's unexpected tidal wave of entrepreneurial activity could mean for the economy. [The New York Times]
Electric car batteries don't last forever, and it's time to plan how to handle the waste. [The Guardian] | | | | | |
|
| |
| | Since yesterday, the PitchBook Platform added: | | 3 Deals | 48 People | 25 Companies | 1 Funds | | | | | | |
| |
| |
| |
| |
| |
| |
| |
|
| |
| |
| DriveWealth banks $450M Series D | | | DriveWealth has raised $450 million at a $2.85 billion valuation in a round co-led by Insight Partners and Accel. The company is a developer of API-driven brokerage infrastructure that helps businesses support embedded investing and fractional trading. DriveWealth was valued at around $217 million in 2020, according to PitchBook data. | | | | | | | | India's Zetwerk hits unicorn valuation | | | Zetwerk has reportedly raised $150 million at a $1.5 billion valuation in a round led by D1 Capital. Founded in 2018, the Bengaluru-based startup runs an online marketplace for manufacturing items and services. | | | | | | | | | Real estate tech company QuintoAndar has raised a $120 million round led by Greenoaks and Tencent, boosting its valuation to $5.1 billion. The funding was a Series E extension that brings the round's total to $420 million. Brazil-based QuintoAndar was reportedly valued at $4 billion in May when the Series E, led by Ribbit Capital, was first announced. | | | | | |
|
| |
| |
| ATL Partners takes majority stake in space-tech provider Geost | | | ATL Partners has acquired a majority stake in Geost, The Wall Street Journal reported. The Tucson, Ariz.-based company develops technology, including infrared sensors, that helps detect and neutralize threats to satellites and other US space assets. | | | | | | | | Leonard Green, Summit Partners sell healthcare provider MDVIP | | | | | | | | | BPEA to buy Straive from Partners Group | | | Baring Private Equity Asia has agreed to acquire Straive from Switzerland-based Partners Group. Bloomberg previously reported that BPEA could pay around $1 billion for Straive, a content outsourcing provider headquartered in Singapore. Partners Group bought a majority stake in the company, then known as SPi Global, in 2017. | | | | | | | | UK supermarket Morrisons agrees to revised CD&R offer | | | Morrisons has agreed to a renewed cash offer from Clayton, Dubilier & Rice that values the chain at £9.7 billion (about $13.2 billion). The offer of 285 pence per share is a significant step up from CD&R's initial bid, which had valued the company at £5.5 billion, and represents a 60% premium to Morrisons' share price prior to the initial offer. In a statement, Fortress—which had led a group of investors to make a competing bid for the supermarket chain—said it was considering its options and urged Morrisons shareholders to take no action, indicating that it may yet make a follow-up offer. | | | | | |
|
| |
| Adobe set to pick up Frame.io in $1.2B+ deal | | | Frame.io, the maker of a collaborative video editing platform, has agreed to be acquired by Adobe in a $1.28 billion deal. The New York-based startup was valued at $808 million in June, according to PitchBook data. Frame.io has received backing from Insight Partners, Accel and Shasta Ventures. | | | | | |
|
| |
| Radial Equity brings in $368M+ for debut fund | | | New York-based Radial Equity Partners has raised over $368 million for its debut fund, Buyouts Insider reported. Radial Equity focuses on middle-market businesses in the consumer and industrial market sectors. | | | | | |
|
| |
| |
|
No comments:
Post a Comment