Can fintech leverage generative AI?

Vision Funds profit hardly dents $7.5B in losses; KKR inks $1.6B Simon & Schuster deal; fortunes diverge for Europe, US cybersecurity

Read online | Don't want to receive these emails? Manage your subscription. Log in The Daily Pitch: VC, PE and M&A August 9, 2023 The Daily Pitch is powered by PitchBook's industry-defining research and best-in-class data In today's Daily Pitch, you'll find: Enterprise fintech eyes generative AI use cases as dealmaking slows KKR's purchase of Simon & Schuster marks a rare play in publishing for PE SoftBank's Vision Funds turn a profit, but they're not out of the woods yet PE investment in cybersecurity is holding steady in Europe. In the US, it's fallen off a cliff Europe's female founders keep building up their record share of VC dealmaking in 2023   Today's Top Stories   How generative AI could fit into enterprise fintech Enterprise fintech has been hitting the brakes from its highs in 2021 and 2022. Even counting Stripe's mega-deal of $6.9 billion, total VC deal value for Q2 2023 decreased 11.9% year-over-year. Still, generative AI is on the rise, and our latest Emerging Tech Research covers opportunities for enterprise fintech investors, especially in applying generative AI technology to segments such as fraud and compliance, sales, and productivity. read the preview   Share: SoftBank Vision Funds profit chips away at $7.5B in cumulative losses SoftBank Group CFO Yoshimitsu Goto speaks at yesterday's earnings call. SoftBank's Vision Funds are finally back in the black. The three funds reported a quarterly profit for the first time in six quarters after an investment gain of 134.7 billion Japanese yen (about $939 million). But a major portion of that gain was from valuation growth logged by semiconductor giant Arm and payments business PayPay. And with a $7.5 billion cumulative deficit on the books, Masayoshi Son isn't out of the woods yet. read more   Share: KKR builds historic foothold in publishing with Simon & Schuster deal (Atlantide Phototravel/Getty Images) KKR is the prince of a tiny island: publishing. The firm announced on Monday it plans to acquire book publisher Simon & Schuster from Paramount for $1.62 billion in an all-cash transaction, affirming the PE behemoth's small foothold in the publishing industry. read more   Share: PE cybersecurity investment stays robust in Europe, plummets in US (Oscar Wong/Getty Images) European PE investment in the cybersecurity industry has continued at a steady rate this year and is on course to top 2022's total, despite a tough dealmaking environment. But US deal activity in the industry has fallen off a cliff, with deal values for 2023 currently standing at less than one-tenth of last year's total. read more   Share: Europe's female founders build on 2023's VC dealmaking gains As VC activity falls to pre-2021 levels, European companies with at least one female founder have garnered 16.8% of all VC capital raised in the region so far in 2023, or €4.6 billion (about $5.04 billion). This is the largest annual percentage on record, according to our European VC Female Founders Dashboard. Despite the increased share for companies with at least one female founder, there has not been a similar rise for companies with only female founders. Such startups have received 1.4% of all VC dollars in 2023, or €379 million. Notable deals in July included agricultural products developer Aphea.Bio's €70 million Series C, as well as Tenpoint Therapeutics' $70 million Series A. explore the dashboard   Share: Recommended Reads This startup is taking on Google's translation software by coupling AI with human native language speakers. [Forbes] Where are immigrant founders of US unicorns from? [Visual Capitalist] Why it's so hard to forecast wildfire smoke. [The New Yorker]   Since yesterday, the PitchBook Platform added: 420 Deals 2692 People 689 Companies 7 Funds See what our data software can do   The Daily Benchmark: 2014 Vintage European Real Estate Funds Median IRR 9.30% Top Quartile IRR 12.11% 0.90x Median DPI Select top performers Activum SG Real Estate Fund III NREP Nordic Strategies Fund I Moorfield Real Estate Fund III *IRR: net of fees 19 Funds in Benchmark » Check out the latest version of PitchBook Benchmarks   VC Deals   Transportation analytics startup Inrix has secured a $70 million investment from Morgan Stanley Investment Management. Cybersecurity company Horizon3.ai has raised a $40 million Series C led by Craft Ventures. Dutch cultivated meat startup Meatable has raised $35 million in a round led by Agronomics. Wastewater treatment company Membrion has raised an additional $5.5 million for its Series B, bringing the round's total to $12.5 million. Investors included Samsung Venture Investment and Lam Capital. Network security startup Stamus Networks has raised a $6 million Series A led by First Analysis. Cytomos, a Scottish provider of cell analysis tech, has secured a £4 million investment led by Archangels. Villari has raised a €2.5 million seed investment led by Forward.one. The Dutch company offers wireless crack detection systems for industrial structures.   PitchBook webinar: Improving behavioral health outcomes The demand for behavioral healthcare has never been greater. Providers and payers are turning to measurement-based care to capture and manage clinical outcomes to improve the delivery of behavioral healthcare and generate financial ROI. In this webinar, PitchBook lead healthcare analyst Rebecca Springer will speak with representatives from Aurora Mental Health & Recovery, Colorado Access, and Owl Health about the transformation of treatment and business models in the behavioral health industry. Register now to secure your spot. Share:   PE Deals   GTCR has agreed to acquire home security company ADT's commercial security, fire and life safety business for $1.6 billion. Advent International will buy a majority stake in Australian luxury fashion company Zimmermann. The deal values the brand at around $1.15 billion, Reuters reported. The Carlyle Group plans to acquire a large minority stake in engineering services firm Quest Global, buying out existing investors Bain Capital and Advent International in a deal valuing the company at $2 billion, Reuters reported. Founder Ajit Prabhu will purchase an additional stake. Nautic Partners-backed ExactCare Pharmacy has agreed to purchase Tabula Rasa HealthCare in a take-private deal valuing the target company at $570 million. Apollo Global Management has acquired a majority stake in Accent from Crossplane Capital, which will stay on as a minority investor alongside the company's founding family. Accent provides equipment and services for the recycling industry. Goldman Sachs Asset Management has invested in Synthica Energy, which owns renewable natural gas production facilities.   Exit & IPOs   Thoma Bravo and Madison Dearborn Partners have sold Syntellis Performance Solutions, an enterprise performance management software provider, to Roper Technologies for $1.4 billion in cash.   Fundraising   Clayton, Dubilier & Rice is on course to raise around $23 billion for the latest iteration of its flagship buyout fund, the Financial Times reported. Revelstoke Capital Partners has raised $1.7 billion for its third flagship fund and affiliated vehicles. The PE firm targets investments in healthcare services companies. Willowridge Partners has closed its secondaries fund Amberbrook IX on $900 million, The Wall Street Journal reported. The firm's secondaries strategy involves buying stakes in PE funds that are, on average, 10 years old. GLP Capital Partners has reached a 4 billion yuan (about $555 million) close on its inaugural fund targeting investments in Chinese renewable energy and energy storage infrastructure. Swiss VC firm L1 Digital has raised $152 million for a second crypto-focused fund, CoinDesk reported. Symbol, an Israeli VC firm started by Onavo founder Yuval Ariav, has closed its debut fund on $50 million.   Chart of the Day   Source: PitchBook's H1 2023 Healthcare Funds Report   Who's in the newsletter today? People Ajit Prabhu Yuval Ariav Investors Advent International Agronomics Apollo Global Management Archangels Bain Capital Clayton, Dubilier & Rice Craft Ventures Crossplane Capital ExactCare Pharmacy First Analysis Forward.one GLP Capital Partners GTCR Goldman Sachs Asset Management L1 Digital Lam Capital Madison Dearborn Partners Morgan Stanley Investment Management Nautic Partners Revelstoke Capital Partners Roper Technologies Samsung Venture Investment Symbol The Carlyle Group Thoma Bravo Willowridge Partners Companies ADT Accent Cytomos Horizon3.ai Inrix Meatable Membrion Onavo Quest Global Stamus Networks Syntellis Performance Solutions Synthica Energy Tabula Rasa HealthCare Villari Zimmermann     About PitchBook | Terms of use | Advertise with us | Contact Follow us: This email was sent to edwardlorilla1986.paxforex@blogger.com via the PitchBook Platform. Do you want to change your email address, get a different edition or unsubscribe? 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