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| In today's Daily Pitch, you'll find: | | | | | |
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| Venture's asset growth has become an albatross around its neck | |  | | (Vicki Jauron, Babylon and Beyond/Getty Images) | | | The venture industry grew rapidly over the past decade because it outperformed other asset classes. That size is now a liability, raising the bar for returns at a time when exits are hard to find.
Cash distributions—the money flowing back to LPs—continue to decline as a share of assets, sinking to the lowest level since the global financial crisis.
The combination of large portfolios and low exits suggests that a massive turnaround in tech IPOs is needed to return VC to the performance that underpins its reputation. | | | | | | | | | European PE shows signs of recovery in Q2 | | Our Q2 2024 European PE Breakdown reveals a market that is on the rebound. In the second quarter, total deal value rose more than 27% from Q1, as rallying markets and monetary easing by the European Central Bank helped buoy investor confidence.
Liquidity also improved in the region, with exit values surging over 90% from the first quarter—driven by 23 mega-exits, including 10 IPOs. Fundraising for the first half of 2024 has put Europe on course for another record year, with mega-funds such as Partners Group's €14.2 billion Direct Equity V accounting for a significant share of value. | | | | | | | |
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| A message from The Lucas Institute for Venture Capital | | |
| Maximize AI startup growth: Free, trusted AI assessment and benchmark | | Ensure your AI companies thrive with the Lucas Institute's Responsible AI Assessment, crafted by VCs, enterprise leaders, and tech founders. This complimentary, tailored assessment offers actionable recommendations based on your company's growth stage, helping you scale with trust and meet enterprise and government standards. By taking the assessment, companies can benchmark their practices against peers, stay ahead of the competition, and achieve sustainable growth. Elevate your portfolio with this essential tool for building fast-scaling, reliable AI solutions.
Portfolio companies can start their assessment here. | | | | | | | |
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| Semiconductor stocks continue frenzied growth | | Trailing revenue multiples blew past 9x for public semiconductor stocks in Q2, making the sector one of only two that increased their median share prices in the AI and machine learning vertical.
Generative AI is not accelerating revenue growth for all companies integrating AI. Among those on track to boost revenue growth in 2024 and 2025, around half deal with hardware instead of software, including semiconductors and autonomous machines.
Our Q2 2024 Artificial Intelligence & Machine Learning Public Comp Sheet and Valuation Guide tracks stock performance, valuations, and market caps for key publicly traded companies. | | | | | | | | | How movement in digital health, healthcare IT stocks could ripple to private markets | | Payments and SaaS specialist Waystar's nearly $1 billion IPO came as a reassurance amid a lackluster 2024 for digital health and healthcare IT stocks.
Several other factors may influence privately held peers. PE activity within healthcare IT is likely to rise as public market multiples reinforce lower private valuations. And the successful expansion of personalized health company Hims & Hers into providing GLP-1 weight loss drugs bodes well for VC-backed startups doing the same, such as Noom.
Our debut Digital Health & Healthcare IT Public Comp Sheet and Valuation Guide tracks stock performance, valuations and market caps for key publicly traded companies. | | | | | | | | | VC might be on the road to recovery—but staffing is not | |  | | (Megan Woodard/PitchBook News) | | | The venture capital market has already bottomed out, with signs that a gradual rebound is underway—but VC teams are still thinning out.
On the positive, valuations are in recovery and total deal value is at an eight-quarter high—hitting $55.6 billion, according to our Q2 2024 PitchBook-NVCA Venture Monitor.
However, firms are still trimming the fat, and high levels of turnover reported in 2023 have continued this year. Much of these dwindling headcounts can be attributed to cyclical factors, but there are also structural changes to consider. | | | | | | | |
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| | Since yesterday, the PitchBook Platform added: | | 775 Deals | 2773 People | 801 Companies | 41 Funds | | | | | | |
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The Daily Benchmark:
2018 Vintage Global VC Funds | | | | | | |
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| A message from the Apex Group | | |
Embracing change: How digitisation is shaping asset management | | The asset management industry is experiencing a transformative shift driven by technology adoption and evolving demands. The latest research report, powered by PitchBook, provides actionable insights and strategies for navigating the evolving digital landscape of asset management.
Key insights explored include: - AI integration in asset management functions
- Fintech trends shaping the future of asset management
- The evolution of asset management practices by 2030
To find out more, download the research report on the Apex Group website here. | | | | | | | |
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Partior raised a $60 million Series B led by Peak XV Partners. The Singapore-based company operates a blockchain settlement network.
Carwow, which operates an online vehicle marketplace, raised $52 million in a round led by Bessemer Venture Partners and joined by existing investors including Accel, Balderton and Episode 1.
44.01, a clean-tech startup developing carbon dioxide mineralization services, raised a $37 million Series A led by Equinor Ventures and Shorooq Partners.
BluSmart, an electric vehicle ridehailing startup based in India, raised $24 million in a round led by existing investor ResponsAbility Investments.
Neuspera Medical, a Bay Area-based company developing medical devices, raised a $23 million Series D led by Vertex Ventures HC and Treo Ventures.
Tapi, an Argentina-based payment processing startup, raised a $22 million Series A led by Kaszek, Bloomberg reported.
LegalFly, a legal-tech specialist based in Belgium, raised €15 million in Series A led by Notion Capital.
Haruko, a digital asset investment management specialist based in London and Singapore, raised a $6 million Series A co-led by Star Capital and MMC Ventures. | | | | | |
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| Don't miss our upcoming webinar | | Elevated interest rates have limited the debt that sponsors are able to raise and, by extension, the number of LBOs they are able to support. Despite this, recent spread compression and a wave of refinancing and extension activity have opened the door for a potential M&A issuance revival.
Join our panel of credit experts as they discuss the factors influencing the US leveraged loan and private credit markets and look at what's to come in 2024. Key topics include: - Are markets ripe for meaningful M&A issuance?
- Is the end of the repricing wave finally in sight for weary lenders?
- Will CLOs maintain a record pace of issuance?
Register now to secure your spot. | | | | | | | |
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Vista Outdoor, a Minnesota-based, NYSE-listed company specializing in outdoor and recreational products, is in talks to be taken private by MNC Capital Partners for $3.2 billion.
Transportation Equipment Network, a North American trailer company owned by I Squared Capital, received more than $600 million from Mubadala and the Qatar Investment Authority.
IK Partners agreed to acquire Kran og Industri Service, a Norwegian provider of inspection and services for cranes and lifting equipment.
Main Capital Partners acquired Nextway, a Danish enterprise content management software supplier.
Flexagon, a Wisconsin-based DevOps platform developer, was acquired by Main Capital Partners.
HeadSpin, a company developing software used to test and monitor mobile apps, was acquired by PE firm PartnerOne. | | | | | |
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Viridium Group, a Germany-based life insurance consolidation company, is in talks to be sold by Cinven in a deal that could value Viridium at around €3 billion, Bloomberg reported.
OneStream, a cloud-based financial platform developer, is seeking to raise $465.5 million in its IPO.
Concentra, a Texas-based occupational health services provider, is seeking up to $585 million in its IPO.
Nupco, a Saudi Arabia-based medical procurement provider, will file for an IPO that could see the country's Public Investment Fund raise $1 billion after selling its 30% stake in the company, Bloomberg reported. | | | | | |
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| Graham Partners, a Pennsylvania-based PE firm, closed its sixth fund on just over $1.8 billion. The fund is targeted at manufacturing companies in North America. | | | | | |
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C Capital, a Hong Kong-based VC firm, will merge with Swiss asset manager Youngtimers. C Capital will be listed publicly on the Swiss Stock Exchange following the merger.
Seviora Holdings is buying a minority stake in ADM Capital, a private credit fund. Seviora is owned by Temasek. | | | | | |
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