Friday, February 11, 2022

Foodtech funding swells in 2021

The latest data on public US PE firms; exploring Nvidia's failed Arm deal; Snoop Dogg, Blackstone's MNRK swap Death Row Records
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The Daily Pitch: VC, PE and M&A
February 11, 2022
Like our newsletter? The data comes from the PitchBook Platform — our data software for VC, PE and M&A
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In today's Daily Pitch, you'll find:
  • From alt-proteins to delivery robots, our 2021 Annual Foodtech Report explores the sector's emerging segments attracting VC attention.

  • Our new PE Earnings Dashboard, which will be updated quarterly, tracks trends in key performance metrics for public PE firms from company filings and PitchBook data.

  • How does Nvidia's attempted Arm takeover stack up against other failed tech mergers?
Today's Top Stories
Foodtech funding doubles in 2021 as VCs supersize their investments
The foodtech sector is rapidly evolving due to shifting consumer behavior, technological innovation, supply chain vulnerabilities and increased focus on sustainability.

Our 2021 Annual Foodtech Report dives into the sector's investment activity, assessing emerging opportunities across market segments—led by alt-proteins, online grocers and delivery robots. Key takeaways include:
  • VCs poured more than $39 billion into foodtech companies in 2021. Over half of the capital went to two categories: online grocers and apps and marketplaces.

  • We expect the momentum for bio-engineered foods, such as plant-based proteins, to continue into 2022 as startups create more realistic alternatives to meat and dairy products.

  • China has become a hotbed for online grocers as startups such as Xingsheng Selected, Nice Tuan, and Pupumall compete for the massive market opportunity presented by high-population areas.
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PE Earnings Dashboard: KKR, Apollo, Blackstone and Carlyle
(Drew Sanders/PitchBook News)
Publicly traded US private equity firms have mostly shown strong returns during the COVID-19 recovery, and their stocks have consistently outperformed the S&P 500 index.

Blackstone, Apollo Global Management, KKR and The Carlyle Group have all seen their assets under management grow in each of the last eight quarters. Three of the four firms saw a steady increase in distributable earnings—the allocation of cash that can be returned to investors—in recent quarters.

Our new PE Earnings Dashboard, which will be updated quarterly, tracks trends in key performance metrics for public PE firms from company filings and PitchBook data.
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A message from Founder Shield
PE and VC firms need to rethink risk management
Private equity and venture capital firms face ever-evolving threats and challenges in today's environment. SEC enforcements were up 33% in 2021, with private companies and firms increasingly becoming targets. From SEC investigations to mismanagement lawsuits, how do you identify major risks faced by your firm and portfolio companies? And how should you implement strategies to mitigate these risks?

In this Private Equity & Venture Capital Risk Management Guide, Founder Shield covers the answers to these questions and more. Learn about crucial policies, examples of claims and lawsuits that private equity and venture capital firms typically face, and how these insurance policies kick in to defend your firm.

Download the Risk Management Guide
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How Nvidia's failed Arm deal compares to tech's biggest M&A upsets
(Ray Massey/Getty Images)
Nvidia's planned $40 billion acquisition of Arm, the British semiconductor manufacturer owned by SoftBank, was officially declared dead this week.

It's the latest in a list of tech mergers scrapped for a range of ultimately insurmountable obstacles. Here are five of tech's biggest failed takeovers.
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Quick Takes
  The Daily Benchmark  
  2017 Vintage European PE Funds  
  VC Deals  
  Curevo Vaccine nabs $60M  
  Superconductive picks up $40M  
  Sardine banks $19.5M Series A  
  FloodFlash secures $15M  
  PE Deals  
  Genstar explores sale, IPO of Advarra  
  KKR picks up trio of self-storage properties  
  Branford-backed Fibrix lands Americo  
  Exits & IPOs  
  Blackstone's MNRK sells Death Row Records to Snoop Dogg  
 
 
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The Daily Benchmark
2017 Vintage European PE Funds
Median IRR
31.45%
Top Quartile IRR
45.02%
1.51x
Median TVPI
Select top performers
HgCapital Mercury 2
Summit Partners Europe Growth Equity Fund II
Constellation Fund V
*IRR: net of fees
24 Funds in Benchmark »
Check out the latest version of PitchBook Benchmarks
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VC Deals
Curevo Vaccine nabs $60M
Curevo Vaccine has raised a $60 million Series A led by RA Capital Management. The Seattle-based company is developing vaccines for infectious diseases. Its lead product is intended to prevent shingles in older adults.
Additional Investors:
Adjuvant Capital, EN Investment, GC Pharma, Janus Henderson Investors
View round
 
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Superconductive picks up $40M
Superconductive has raised a $40 million Series B led by Tiger Global. Based in Salt Lake City, the company is the developer of an open source tool for data testing, documentation and profiling. Index Ventures, CRV and Root Ventures also participated in the funding.
View round
 
View 1 competitors »
 
Sardine banks $19.5M Series A
Sardine has raised $19.5 million from investors including Andreessen Horowitz, NYCA and Experian Ventures. The San Francisco-based company is the developer of a fraud and compliance platform for neobanks and digital wallet providers.
View round
 
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FloodFlash secures $15M
FloodFlash has raised a $15 million Series A co-led by Buoyant Ventures and Munich Re Ventures. Founded in 2019, the London-based company is the developer of an insurtech platform for flood coverage.
Additional Investors:
Global Brain, Insurtech Gateway, LocalGlobe, MS&AD Ventures, Pentech Ventures, PropTech1 Ventures, Sony Financial Ventures
View round
 
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PE Deals
Genstar explores sale, IPO of Advarra
Genstar Capital is exploring the sale of clinical research services company Advarra at a value of $5 billion or more, Bloomberg reported. Genstar is also said to be considering an IPO for Advarra.
View deal
 
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KKR picks up trio of self-storage properties
KKR has acquired three self-storage properties totaling approximately 2,000 units across Georgia, Florida and Virginia for roughly $70 million. The acquisition brings KKR's total self-storage platform to over 13,500 units in the US.
View details
 
View 1,784 investments »
 
Branford-backed Fibrix lands Americo
Blue Sage Capital has sold Americo Manufacturing Company to Fibrix Filtration. Georgia-based Americo manufactures cleaning products including floor pads, hand pads, utility pads and floor matting. Fibrix has been back by Branford Castle Partners since 2020.
View deal
 
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Exits & IPOs
Blackstone's MNRK sells Death Row Records to Snoop Dogg
Blackstone-controlled MNRK Music Group has sold Death Row Records to Snoop Dogg, according to reports. Founded in 1991 and based in Los Angeles, Death Row served as the hip-hop artist's debut label.
View details
 
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Chart of the Day
Source: PitchBook's 2021 Annual US PE Breakdown
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