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In today's Daily Pitch, you'll find: - Our inaugural report on enterprise SaaS covers the trends, segments, top deals and investors in the space.
- Tiger Global is shopping a bundle of assets on the secondary market in hopes of generating liquidity for its LPs.
- Private debt funds yielded positive returns in H2 2022, showing resilience in a volatile market.
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| Enterprise SaaS shows signs of further slowdown in Q1 | | 2022 was the second-biggest year for funding in the enterprise SaaS sector—but signs of a slowdown continue in 2023, in line with broader market trends. The vertical, which focuses on software services for businesses, is the latest area of new coverage by our analysts. Our launch report covers the trends, segments, top deals and investors in the space. Key takeaways include: - Total deal value in Q1 rose 18.5% from the previous quarter, to nearly $14 billion, largely due to Stripe's $6.5 billion raise. Without Stripe, deal value was down 37%. Total deal count decreased 8.6%, to 363 deals.
- Stripe, CloudKitchens and Anduril topped the list of VC-backed companies that have raised the most capital; investors like Alumni Ventures, Tiger Global and Andreessen Horowitz were some of the most active in the sector.
- Enterprise resource planning, customer relationship management and business analytics were among the most active segments.
| | | | | | | | | Exclusive: Evercore advises Tiger Global on GP-led secondaries strip sale | |  | | (John Lamparski/Getty Images) | | | Tiger Global, a prolific investor in VC-backed companies during the pandemic-era boom, has hired Evercore to help it shop a curated portfolio of assets on the secondary market. The sale process, which kicked off months ago, is structured as a GP-led strip sale, according to sources.
The crossover investor hopes an eventual sale will provide liquidity to its LPs. So far, it's been testing the waters to see how much secondary buyers might be willing to pay, but the large bid-ask spread has likely made the deal unattractive to both sides. | | | | | | | | | Private debt delivers calm waters in storm of volatility | |  | | (bcampbell65/Shutterstock) | | | Private debt funds performed soundly in the second half of last year, achieving a one-year IRR of 0.4% in Q4, according to preliminary data from PitchBook. That's likely to inspire confidence in the category.
Fund managers now expect an array of opportunities to emerge in the space after banks tighten their lending standards, allowing private debt funds to deploy capital more quickly than anticipated. | | | | | | | | | US VC valuations extend slump as down rounds creep up in Q1 | | VC valuations continued their descent in Q1. The dearth of IPO exits, a pullback from nontraditional investors, and ongoing economic headwinds have all contributed to lower valuations and smaller round sizes for all stages except seed.
Not only did valuations drop, but the share of down rounds as a percentage of all deals began to creep higher, according to our Q1 2023 US VC Valuations Report, sponsored by Morgan Stanley At Work. Our analysts estimate the market environment has become the most investor-friendly in nearly a decade. Other takeaways include: - Pressures from a lack of capital availability also trickled down to earlier stages of the venture ecosystem.
- The median deal size for late-stage rounds fell 25% to $6 million, the lowest figure recorded since Q2 2017.
- Pre-money valuations for venture growth-stage companies fell to a median of $90 million, a nearly 75% decline from the 2021 full-year record high of $355 million.
| | | | | | | | | Agtech dealmaking freezes over | | Agtech investors are concentrating on larger deals in later-stage companies that seem like safe bets as overall funding keeps dropping, according to our latest report on the space. - Agtech startups raised $1.9 billion in VC funding across 172 deals in Q1—a decline of 10% and 39%, respectively, from the previous quarter.
- Pre-money valuation levels jumped nearly 20% from 2022 to reach a median value of $16.5 million.
- Indoor farming startups have been hit especially hard—five companies have ceased operations or gone bankrupt this year.
| | | | | | | | | | Digital payments have transformed domestic finance. Now, competition is going global. [The Economist]
A detailed breakdown of the state of play in the world of fusion energy. [Scientific American]
Apple continues to make it harder and more expensive to repair its products, but France is fighting to save iPhones from early deaths. [Wired] | | | | | |
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| | Since yesterday, the PitchBook Platform added: | | 7 Deals | 103 People | 32 Companies | 2 Funds | | | | | | |
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The Daily Benchmark:
2021 Vintage Global Real Estate Funds | | | | | | |
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Jeff Jordan, who joined Andreessen Horowitz in 2011 as a general partner, is stepping back from new investments at the firm, but will continue working with existing portfolio companies and maintain his board seats. Jordan led a16z's investments in Airbnb and Instacart, among others.
Leigh Marie Braswell, a principal at Founders Fund, is leaving the firm after two and a half years. Braswell, who joined from Scale AI, was involved in deals for companies including Neon and Paxos. | | | | | |
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Restaurant365, which offers restaurant enterprise management software, has secured a $135 million investment co-led by KKR and L Catterton, with participation from Bessemer Venture Partners and Iconiq Growth.
Fivetran, a data movement startup, has secured $125 million in new financing from Vista Credit Partners.
BuildOps, which offers a project management platform for commercial contractors, has raised $50 million led by Fika Ventures and 01 Advisors.
Adarga, a London-based startup offering AI software for security risk intelligence, has raised $20 million in a round led by BOKA Group.
Odyssey, which offers a platform for renewable energy companies, has raised a $15 million Series A led by Union Square Ventures.
Parker89 has led a £7.5 million Series A for Orbital Witness. The startup uses generative AI to improve the due diligence process for buying properties.
Project management specialist Deployed has closed a $4 million seed round led by Amrock Ventures and M12.
Berlin's Nia Health, a provider of digital therapeutics for chronic skin conditions, has secured €3.5 million in a round led by High-Tech Gründerfonds. | | | | | |
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| KKR-backed Vietnamese education company EQuest has raised $120 million in equity from KKR and debt, DealStreetAsia reported. | | | | | |
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Insight Partners has closed its Continuation Fund II to invest in software startups with over $1.2 billion in total commitments.
Bregal Milestone has held a €770 million final close on its second fund targeting European tech companies.
India's Aurum Equity Partners has launched a $250 million PE fund targeting global tech infrastructure such as data centers.
TDK Ventures, the corporate venture capital arm of Japanese technological components company TDK, has launched a $150 million EX1 fund to invest in climate tech startups. | | | | | |
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| AIP Capital, a new division of 777 Partners, has plans to invest up to $200 million before the end of 2024 in companies that supply the aerospace industry, Reuters reported. | | | | | |
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| Russian billionaires Vladimir Potanin and Vagit Alekperov have put in separate bids for a 51% stake in the domestic assets of Russian technology giant Yandex, valuing the company at over $7 billion, Bloomberg reported. | | | | | |
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