AI model prompts record funding

A 'Goldilocks year' for private credit; discounts on startup secondaries fade; cybersecurity VC funding returns to growth

Read online | Don't want to receive these emails? Manage your subscription. Log in The Daily Pitch: VC, PE and M&A December 30, 2024 The Daily Pitch is powered by PitchBook's industry-defining research and best-in-class data Mega-deals double AI foundation model funding in 2024 (Drew Sanders/PitchBook News) Mega-deals led by some of the world's largest investors and corporations have pushed funding for AI foundational models up more than 100% this year—and left smaller VC firms looking elsewhere for opportunities in AI. A record of more than $40 billion was invested into foundation models and other AI cores startups this year, bringing the total raised since 2023 to $60.2 billion, according to PitchBook data. read more   Share: 2025 to be a 'Goldilocks year' for private credit (Pakin Songmor/Getty Images) A more relaxed regulatory environment and lower interest rates could spark more M&A transactions and drive dealmaking in private credit in 2025. That optimism, though, is tempered by concerns that increased competition may tighten spreads, loosen covenants and compress returns on deals. read more   Share:   A message from PitchBook   Ready to engage top PE and VC audiences? Our 2025 PitchBook Media Kit offers service providers direct access to 2.1 million engaged professionals through our targeted newsletters and exclusive reports. Backed by PitchBook's trusted global data, our sponsorships amplify your brand via custom reports, asset class insights, website and native content partnerships. See what's new for 2025 Share:   Secondary discounts for startups have nearly recovered (The Burtons/Getty Images) Huge discounts on startup secondaries are vanishing, a sign that demand for these minority stakes is finally catching up to supply. Relative to their last funding round, prices of direct secondaries have gone from trading at an average discount of 50% in early 2023 to 12% in September. read more   Share: Cybersecurity VC funding returns to growth Generative AI is lending a boost to information security VC investment, according to our recent Emerging Tech Research. Infosec VC funding is on pace to grow year-over-year, with startups collecting $8.8 billion through Q3. The Morningstar PitchBook Cybersecurity Unicorn Index has outperformed indexes of both global unicorns and AI unicorns since 2021. A loaded IPO pipeline should benefit from Rubrik: The company went public in April, and its stock is up more than 50% over the past month. read the preview   Share: Mid-market recovery plays catch-up to larger buyouts PE dealmaking in the middle market has sprung back to life. However, the recovery progressed at a less brisk pace compared to the broader PE market. Total middle-market deal value in Q3 rose 11% in Q3, while US buyouts of all sizes accelerated by 13.3% quarter-over-quarter, according to our US PE Middle Market Report, sponsored by LBMC. In addition, exits remain sluggish, lagging pre-pandemic levels. Our analysts project fewer than 800 middle-market exits for 2024, below the annual average of nearly 900 from 2017 through 2019. read the report   Share:   Since yesterday, the PitchBook Platform added: 15 Deals 44 People 32 Companies 4 Funds See what our data software can do   The Daily Benchmark: 2019 Vintage Global VC Funds Median IRR 12.96% Top Quartile IRR 22.96% 0.03x Median DPI Select top performers Play Ventures I D3 Bio Healthcare Fund Longevitytech.fund I *IRR: net of fees 72 Funds in Benchmark » Check out the latest version of PitchBook Benchmarks   About PitchBook | Terms of use | Advertise with us | Contact Follow us: This email was sent to abdulkerim.bosnia.business@blogger.com via the PitchBook Platform. Do you want to change your email address, get a different edition or unsubscribe? Manage your subscription here. PitchBook Data Inc., 901 Fifth Avenue, Suite 1200, Seattle WA 98164, United States © 2024 PitchBook. Win what's next. All rights reserved.