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In today's Daily Pitch, you'll find: - Our analysts size up what could happen next in fintech M&A
- Our earnings dashboard tracks the recent moves of public PE firms amid an LBO slowdown
- Pre-seed and seed startups hold out as VC valuations continue to decline
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| Fintech on the auction block | | Valuation expectations from fintech buyers and sellers were stuck at an impasse throughout 2023, when the US recorded a 46% dip in fintech M&A value year-over-year. But as the sector enters the fifth inning of its failure wave, cash crunches will drive more distressed acquisitions and fire sales, according to our latest Emerging Tech Research.
Our analysts cover the likely acquisition targets and what could happen next in M&A—based on interviews with over 30 fintech founders, bankers and investors. | | | | | | | | | Public PE firms flex with shifting tides | | Publicly traded US private equity heavyweights explored new avenues for growth as the LBO boom—previously powered by cheap debt—ran out of steam. They also unveiled new vehicles that open private-market assets to a new flock of investors: individuals.
Our US PE earnings dashboard tracks all the key performance indicators for the big public firms that set the industry's agenda, and these recent moves point to the fact that PE's giants are embracing change. | | | | | | | |
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| 2024 PitchBook Media Kit released | | Volatility is on the rise, everywhere. Dealmakers are looking for insights, services and tools to navigate challenging, complex market environments—and you can help them. By partnering with PitchBook Media, you can reach over two million industry professionals spanning the C-suite to flagship GP offices. Customize a unique array of options from the brand-new 2024 PitchBook Media Kit, including: - Sponsorship of market-leading reports such as the PitchBook-NVCA Venture Monitor
- Placement in the most widely read industry newsletters such as the Weekend or Credit Pitch
- Sponsored columns to share your specific message or thought leadership
- Bespoke research options for unique, in-depth analysis
Talk to us | | | | | | | |
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| VC valuations slump persists | | VC valuations continued to slide from their peaks in 2021 and early 2022, with only pre-seed and seed deals bucking the trend. While median early-stage and late-stage valuations fell to their three- and five-year lows, respectively, an abundance of small funds competing for seed deals helped to keep prices up for companies in those categories.
Not only did 2023 see a dismally low number of IPOs, but also the median valuation of startups that managed to make a public debut declined to the lowest level in a decade. Although M&A activity dropped too, acquisition valuations increased year-over-year, according to our 2023 Annual US VC Valuations Report, sponsored by Morgan Stanley At Work and Mintz. | | | | | | | | | A frosty winter for private equity in healthcare services | | PE dealmaking in healthcare services declined an estimated 16.2% year-over-year in 2023, while platform deals hit a seven-year low as acquirers reeled from high interest rates and a prolonged labor crunch. Healthcare services companies made up 20% of leveraged loan default value in 2023, and large deals remain difficult to finance, according to our Q4 2023 Healthcare Services Report.
In 2024, rainmakers will be closely following interest rate cuts and antitrust scrutiny targeted at PE healthcare services as they wait for more favorable exit opportunities. | | | | | | | | | Q4 'Weakest Links' in US leveraged loan market | |  | | (Sashkin/Shutterstock) | | | | The toll of higher interest rates on borrowers can be seen in LCD's latest "Weakest Links" analysis of US leveraged loan issuers—a forward indicator of default activity. The Q4 2023 tally accounted for nearly 14% of the loan market, as more issuers have fallen on the cusp of a downgrade to triple-C ratings. Healthcare was the most highly represented sector in the count. | | | | | | | |
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| | Since yesterday, the PitchBook Platform added: | | 407 Deals | 2859 People | 703 Companies | 34 Funds | | | | | | |
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The Daily Benchmark:
2019 Vintage Global Secondaries Funds | | | | | | |
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Lambda has raised a $320 million Series C led by Thomas Tull's US Innovative Technology Fund. The GPU cloud provider is based in San Jose and specializes in generative AI and LLM training.
San Francisco-based biotech startup Freenome has secured a $254 million investment led by Roche. Andreessen Horowitz was among the participating investors.
Milan-based mobile app developer Bending Spoons has raised $155 million at a $2.55 billion valuation. Investors in the round included Durable Capital Partners, Baillie Gifford and NB Renaissance.
Higharc, a North Carolina-based provider of a cloud platform for the homebuilding industry, has raised a $53 million Series B led by Spark Capital and Pillar VC.
Scribe, a document processing startup based in San Francisco, has raised a $25 million Series B led by Redpoint Ventures.
Monumental, an Amsterdam-based developer of autonomous construction robots, has secured $25 million in a round led by Plural and Hummingbird VC.
San Jose-based Point2 Technology, a low-power chip manufacturer, has raised a $22.6 million Series B extension from Bosch Ventures.
Clarity has raised a $16 million seed round led by Walden Catalyst and Bessemer Venture Partners. The New York-based company's technology detects deepfakes and synthetic media.
Go Autonomous, a Copenhagen-based B2B commerce specialist, has closed a $10.3 million Series A led by Octopus Ventures and Ridge Ventures.
Fever, a Swedish developer of an API-centric platform for virtual power plants, has raised a €10 million seed investment led by General Catalyst. | | | | | |
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| Don't miss our upcoming Tech Talk webinar | | PitchBook senior analyst Rudy Yang has assembled a panel of experts from the payments industry to discuss the future of real-time transactions. Hear from the executives working on the instant-payment networks FedNow and Real Time Payments—as well as DailyPay and Forwardly, two companies utilizing these rails to foster the next generation of payments innovation. Key topics include: - What role instant transactions currently play in the fintech industry.
- The biggest opportunities and use cases beyond the hype, as well as the greatest risks and challenges currently being faced today.
- Beyond the US: How innovations in instant payments are taking shape globally and connecting the world.
Register now to secure your spot. | | | | | | | |
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Boston-based .406 Ventures has secured $265 million for its fifth flagship fund to invest in early-stage AI, healthcare and cybersecurity startups.
United Airlines has raised more than $200 million for United Airlines Ventures Sustainable Flight Fund from investors including Google, Air New Zealand and Aircastle. | | | | | |
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"The sector, known for its cyclical nature—particularly during times of economic uncertainty—saw the resurgence of larger-scale deals in 2023, which significantly contributed to the overall deal value. In 2023, five deals surpassed the $5 billion mark with a combined value of $63.0 billion, while 2022 witnessed only one such deal, amounting to $11.0 billion in total deal value."
Source: 2023 Annual Global M&A Report | | | | | |
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