Healthcare checkup: PE healthcare specialists are outraising the broader asset class, but the story is different in VC. Our report is a guide to ~500 healthcare managers and their performance. Read it here.
Join our team! We're hiring a private capital analyst in our Singapore office to cover PE and VC in Asia-Pacific. We'd love for you to read the job description and/or share it with your networks: click here. | | | | | |
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| Analyzing VC returns by series and alternative exit strategies | | The risk-reward tradeoff in VC should compensate seed investors to a relatively higher degree than, say, Series D investors. And it does. If seed investments didn't generate outsized returns, few investors would finance young startups. Our returns-by-series model highlights the return differences between investment stages. Seed, which we have added to the model, vastly outperforms other series investments, bringing home an annualized return of 25.5%.  | | Click for our latest on VC returns by series. | But these historical market returns are currently under significant strain. The lack of exits has cratered distributions, and valuation pressures are expected to compress future returns. Later-series deals have been hit particularly hard. Not only are those returns relatively lower on an annualized basis, but the timelines of exits have extended significantly. As IPOs and M&A remain elusive, many investors have turned to alternative forms of return generation. Secondary exchanges have been around for some time, but until recently, there haven't been sufficient tailwinds to propel their wider adoption. The recent uptick of investor interest in VC secondaries has led to record fundraising for this liquidity strategy. Several firms have also launched continuation funds, searching for ways to clean up their aging portfolios. For investors across the venture lifecycle, the realization of returns is what truly matters. Though discounts may be given to create the needed liquidity, at some point, cementing a slightly lower-than-expected annualized return is better than seeing outsized paper gains disappear. For more data and analysis, read the free research from our VC team this week: VC Returns by Series: Part IV Exit Alternatives for US VC | | | | | | | | | A high bar for exits hits biopharma startups | | Biopharma remains a robust sector for VC investment, showing resilience despite a challenging exit environment.
Recent data highlights a sharp decline in exit value, which dropped from $10 billion in Q1 to $4.5 billion in Q2. This underscores a shift in investor focus, where only biopharma companies with strong clinical data are successfully navigating IPOs.
As a result, many startups—particularly those innovating in areas such as gene editing, targeted cancer therapies, and AI-driven drug discovery—face prolonged development timelines without immediate prospects for acquisition or entry into public markets.
Additionally, the forthcoming BIOSECURE Act may significantly impact the biopharma landscape by restricting collaborations with certain Chinese firms by 2032, potentially driving US companies toward local contract research organizations.
AI remains a key area of VC activity, with significant raises by companies that may see consolidation. Investments in emerging technologies like CRISPR and oncolytic virus therapies continue to be strong. The obesity treatment sector is also attracting new entrants, challenging established pharmaceutical leaders.
Looking ahead, deal activity is expected to remain stable through late 2024, though challenges in achieving exits—particularly via public markets and M&A—are likely to persist, especially if interest rates remain elevated.
Read a preview of our Biopharma Report
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| A message from PitchBook Data | | |
| 2024 advertising opportunities with PitchBook | | Clients trust PitchBook Media for top-tier ad placements in our seven specialized newsletters that connect with 2.1 million highly engaged PE and VC professionals. Backed by our robust global market data, we craft custom research reports and amplify clients' existing thought leadership through partnerships on PitchBook's asset class reports or native sponsored content columns.
Explore our Media Kit for more information or email us at mediasales@pitchbook.com. | | | | | | | |
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US Public PE and GP Deal Roundup
Deals that target GPs are on a record pace.
A total of 89 have been announced or completed through July, an 84% increase YoY and on track to easily surpass the high mark of 114 deals in 2021.
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Our report also focuses on financial and strategic trends involving the seven largest US-listed alternative managers, where fundraising is up 44% over 2023 across all strategies, driven primarily by private credit:
Read the free report
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Micro-Mass Transit
Emissions and congestion are getting worse. Mass transit costs too much while serving too few.
One startup, Glydways, is taking a novel approach to mobility that is accessible, green, and capital-effective.
Our new research explains why overcoming the hurdles of urban transportation might require shedding traditional assumptions and embracing different thinking:
Read the free research
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Enterprise SaaS Report
VC funding in enterprise SaaS bounced back in Q2 as companies made inroads in human-like AI development.
Startups raised $22 billion across 713 deals, representing the sector's highest quarterly deal value in over a year—even when excluding xAI's massive round.
Our new report also dives into the world of emotion AI and tech that can analyze human features like facial expressions and speech patterns:
Read a free preview
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A reminder of upcoming events:
Sept. 9-11: We'd love to meet you at IPEM in Paris, an event for PE dealmakers that will feature 6,000 attendees representing 2,000+ firms, including 1,200 LPs and 1,000 GPs. We're also sponsoring the Private Debt Summit during the conference. More details here.
Sept. 11-12: Join us at the BVCA Summit in London, an event for private capital fund managers, institutional investors, pension funds, and family offices. LPs can register here; GPs and others can request to register.
Sept. 17: Our Tech Talks series continues with HydroX AI founder Zhuo Li on security, privacy, and copyright issues related to large language models. Register here.
Nov. 5-8: Come see us at SuperInvestor 2024 in Monaco. The event will feature 1,000+ senior LPs and 1,500+ GPs, offering more opportunities than ever to make industry connections. Register here.
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Our insights and data featured in the press: - Identifying sectors on the rise in climate tech. [WSJ]
- The 12 biggest take-private PE acquisitions so far this year in tech. [TechCrunch]
- Medical device companies are teaming up, providing evidence of further consumerization of healthcare, particularly in diabetes. [MedCity News]
- Digging into PE's new access to the NFL. [Pensions & Investments]
If you're a journalist interested in interviewing our analysts or requesting data, contact our PR team.
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More of our recent research (* - report preview):
Market updates
Thematic research
Industry & tech research
Coming next week (subject to change) - Global Markets Snapshot: August
- UK Private Capital Breakdown
- Germany Market Snapshot
- Insurtech Report*
- Crypto Funds Note
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| | Since yesterday, the PitchBook Platform added: | | 366 Deals | 1609 People | 618 Companies | 41 Funds | | | | | | |
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