Tuesday, February 20, 2024

Hydrogen fuel heats up

AI, cybersecurity top unicorn leaderboards; our freshest fund performance data; the European unicorns most likely to list
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The Daily Pitch: VC, PE and M&A
February 20, 2024
The Daily Pitch is powered by PitchBook's industry-defining research and best-in-class data
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Today's Top Stories  
Hydrogen fuel heats up
The recent collapse of Convoy—the "Uber for trucking" startup that had promised to revolutionize freight logistics—sent a chill through supply chain investors, according to our latest Emerging Tech Research. But despite the high-profile bankruptcy, trends point toward a more positive 2024.

For those still pumping the accelerator, there are plenty of opportunities for investors to get in on the ground floor of emerging fields like hydrogen fuel and cold-chain logistics solutions—and with a smaller first check.
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AI, cybersecurity topped unicorn leaderboards in 2023
(Chloe Ladwig/PitchBook News)
Despite a difficult environment all around, unicorns showed resilience in 2023, depending on where you look. According to PitchBook and Morningstar's Global Unicorn Vertical Indexes, AI and cybersecurity saw the most gains, while agtech dropped the most.
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Gaming continues leveling up
Despite a relatively subdued year, the gaming VC ecosystem ticked upward in Q4, according to our latest Emerging Tech Research. Across 126 deals gaming startups brought in $1 billion from VCs, snapping back to the more realistic level of investment seen pre-pandemic.

As gaming continues to grow even bigger, content moderation and back-end service startups are emerging opportunities in the sector. Our Q4 2023 Gaming Report highlights the startups, trends and opportunities worth paying attention to.
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Are semiconductors ripe for PE investment?
(Mara Potter/PitchBook News)
Semiconductors are a core part of modern electronics, yet they retain a reputation for being a highly niche industry.

With the industry predicted to double in size by the end of the decade and surpass the $1 trillion mark, is it time for PE to start investing?
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PitchBook Benchmarks for PE, VC and more
PitchBook Benchmarks offer a window on the latest data for closed-end fund returns across strategies. The current edition is now available, updated through Q2 2023, with preliminary data for Q3. It features data visualizations and PDFs that reveal the numbers by strategy and geography. Additional data and vintage years are available in Excel data packs for PitchBook clients.
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IPO Watchlist: European unicorns most likely to list
(Courtesy of Northvolt)
Europe had its worst year for VC-backed IPOs in over a decade with only 28 companies raising a total of €1.4 billion ($1.5 billion).

But as inflation and interest rates come down and the public markets start to stabilize, more companies may be getting their ducks in a row. Check out our roundup of the European unicorns most likely to go public.
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Funds
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The Daily Benchmark:
2016 Vintage Global PE Funds
Median IRR
19.59%
Top Quartile IRR
25.41%
0.88x
Median DPI
Select top performers
Francisco Agility Fund
Renovus Capital Partners II
Gemspring Capital Fund I
*IRR: net of fees
136 Funds in Benchmark »
Check out the latest version of PitchBook Benchmarks
 
VC Deals  
Abu Dhabi-based foodtech startup The Cloud has held a $12 million first close on its $30 million Series B. Investors in the round included MENA Moonshots.

Avatar Medical, a Paris-based provider of 3D medical imaging technology, has closed a €5 million seed investment led by Go Capital.

GlycanAge, a UK-based biological age testing startup, has raised a $4.2 million seed round led by Launchub Ventures.

Spanish healthtech startup Wivi Vision has secured €4 million in a round led by Adara Ventures.
 
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PE Deals  
TA Associates and Five Arrows, the alternatives unit of Rothschild & Co, have together backed Agilio Software, a UK provider of software for frontline healthcare operations.

IW Capital has made a £1.25 million follow-on investment in UK-based 'Scan-Pay-Go' app developer Ubamarket.
 
Exits & IPOs  
TPG is the frontrunner to acquire Permira-backed fund administrator Alter Domus, Bloomberg reported. Hellman & Friedman and Cinven are also making rival bids.

Mutares has agreed to acquire Japanese-Brazilian restaurant chain Temakinho from BC Partners-owned Italian restaurant group Cigierre.
 
Fundraising  
French VC firm Partech has closed its second Africa-focused fund on €280 million. The vehicle will target seed to Series C investments with initial tickets ranging from $1 million to $15 million.
 
Chart of the Day  
Source: Q4 2023 PitchBook-NVCA Venture Monitor
 
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