| |
| In today's Daily Pitch, you'll find: | | | | | |
| |
| |
| 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.
| | | | | | | | | First Citizens vies for SVB client base as it pulls in $9.5B profit | |  | | (JHVEPhoto/Shutterstock) | | | First Citizens' deposits jumped from $89 billion to $140 billion in Q1 following its purchase of collapsed Silicon Valley Bank, catapulting the lender into the ranks of the top 20 US banks
The lender's acquisition was a "home run financially," CEO Frank Holding said.
Now, First Citizens is on a mission to retain its client base of SVB customers and capture a market share of the venture lending industry. | | | | | | | |
| |
| |
| Successful leadership strategies for remote teams | | When the pandemic began, several organizations were faced with stagnation, budget, and staff cuts—leading to generally low morale. With employees now dispersed and remote, companies like Lego sought to rejuvenate and empower their workforce through leadership.
Rather than stick with what the C-suite thought leadership should look like, Lego polled their entire organization and discovered common themes not previously considered. NASA faced similar issues and redefined leadership as an act, not a supposition, developing an entire leadership program to reflect these values.
At the core, great leadership in a remote environment requires leaders to prioritize two-way communication, proactive and inclusive decision making, and agility. To learn how you can revitalize your leadership strategies, read our blog The Key to Successful Remote Work Leadership. | | | | | | | |
| |
| Reporter's notebook: Democratization, divestment, AI at Milken conference | |  | Pimco CEO Emmanuel Roman spoke about his expectations for generative AI during the conference.
(PATRICK T. FALLON/Getty Images) | | | In the five-minute lulls between headline-dominating finance trends, private market executives at the recent Milken Institute Global Conference addressed themes bubbling beneath the surface.
The democratization of the private markets, the impact of AI and the energy transition were among key concerns for industry players in attendance. | | | | | | | | | First Republic soft landing unleashes demand in high-grade bond market | |  | | (Kowit Lanchu/Shutterstock) | | | Companies in the riskier, more-volatile reaches of the US capital markets weren't the only potential debt issuers spooked by the recent bank failures. Issuers of higher-rated, investment-grade bonds hit the brakes as well.
That changed as the calendar turned to May—and as regulators provided a soft landing for First Republic Bank depositors. On the first day of the month alone, nearly $23 billion in high-grade bonds were issued, the most since February, according to LCD.
For more on this high-profile segment, which is often a leading indicator in the capital markets, check out LCD's Investment Grade Wrap. It details yields, marquee deals, returns by asset class and more. | | | | | | | | | PE defense, aerospace investing falls from 2021 peak | |  | | (aappp/Shutterstock) | | | Private equity investment in defense and aerospace has fallen from its peak in 2021, even as defense spending soars and demand for air travel recovers.
Since 2018, four of the top five biggest PE deals in the aerospace and defense sector were in Europe, with Advent's take-private of UK defense firm Cobham in 2020 being the largest. But overall, US PE funds dominate the sector. | | | | | | | | | Trouble ahead for European fintech valuations | |  | | (JUSTIN TALLIS/Getty Images) | | | VC valuations for Europe's fintech startups are still on the rise, but a turn for the worse may be on the horizon.
Recent months have shown internal markdowns for several companies and a significant decrease in dealmaking. | | | | | | | | | | Brookfield Asset Management predicts consolidation in the private capital industry as smaller managers struggle. [Financial Times]
Technology and powerful genetic techniques are making it more feasible to improve the taste of vegetables. [Scientific American]
PE firms with women owners are more likely to focus on impact strategies, research shows. [Institutional Investor] | | | | | |
| |
| |
| | Since yesterday, the PitchBook Platform added: | | 353 Deals | 2046 People | 588 Companies | 16 Funds | | | | | | |
| |
The Daily Benchmark:
2013 Vintage European PE Funds | | | | | | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| Investment platform Titanbay has partnered with Swiss-based wealth management software services company Evooq to provide private markets access to private banks and wealth managers. | | | | | |
| |
| |
| Australia-based lithium miner Allkem has agreed to an all-stock merger with US lithium company Livent, forming a combined company with a value of $10.6 billion. | | | | | |
| |
| |
| |
| |
No comments:
Post a Comment