Wednesday, April 30, 2025

Can M&A hold its grip?

VC renews push for looser regulation; secondhand marketplace Vinted kicks off CVC; crypto fuels European fintech surge
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The Daily Pitch: VC, PE and M&A
April 30, 2025
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⚠️ Caution is creeping into the M&A landscape despite a strong Q1 in which deal value topped $1 trillion across over 12,000 transactions, according to our Global M&A report. Growing economic uncertainty—driven by recession risks, trade tensions and shifting political dynamics—is beginning to weigh on dealmakers' minds.

Valuations remained mostly flat, at levels that signal a market returning to pre-pandemic norms. Meanwhile, public market multiples continue to lag, and the brief IPO optimism seen early in the year has faded. Get the report

🗾 Corporate reforms and a weak yen are driving foreign interest in Japan's PE market. PE investment set a deal count record in Q4, and exit activity hit all-time highs last year. Meanwhile, VC deal flow has stabilized following a record-setting Q3, dominated by late-stage deals. Exit activity has remained robust, led by M&A in software and B2B startups. Read the research

👗 Secondhand marketplace Vinted launched an investment arm to back other "recommerce" startups on the heels of record profits in 2024. Corporate venture firms have pulled back from VC deals in recent years. Full story

Plus...
• Crypto brings wind under the wings of European fintech VC deals
Agtech wrestles with market volatility and policy shifts

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VC renews push for looser regulation
(Jenna O'Malley/PitchBook News)
With a new administration in the White House, VCs are reviving a long-standing effort to relax adviser rules they say were built for Wall Street, not startup investing.

The National Venture Capital Association and allied groups are pushing to give firms more flexibility within their exemption from registering as investment advisers, including asset limits and investment types.
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Agtech wrestles with market volatility, policy shifts
VC funding for the agtech industry cooled in Q1, dropping to $1.6 billion across 137 deals—a notable decline from the previous quarter, according to our latest Emerging Tech Research. The ag biotech and precision agriculture sectors drew the most capital, thanks to the demand for innovation in automation, data-driven solutions and crop improvement.

Meanwhile, shifts in US ag policy and the financial struggles of some high-profile startups underscored the sector's evolving landscape. As the market recalibrates, established agtech companies with strong fundamentals are best positioned to attract capital and shape the sector's next phase.
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Crypto fuels surge in European fintech VC funding
(Eugene Mymrin/Getty Images)
VC funding for European fintech startups has already reached over two-thirds of 2024's annual total. And the sector has accounted for more than 30% of the region's total deal value this year, compared with just over 14% last year.

Late-stage deals and cryptocurrency are driving the sector's recovery.
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Sustainable investing isn't dead—it is changing
(Travelstoxphoto/Getty Images)
Is ESG dead? Not quite. While a vocal anti-ESG movement has emerged and political and regulatory shifts are reshaping the landscape, sustainable investing and climate-related investment in the private markets continue both publicly and behind closed doors.

Our recent analyst note covers how fund managers are modifying the language they use to discuss ESG, how private equity and infrastructure funds are adapting to policy changes, and why pursuing ESG and impact investing doesn't necessarily mean sacrificing returns.
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The Daily Benchmark:
2014 Vintage European PE Funds
Median IRR
18.24%
Top Quartile IRR
26.03%
1.08x
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People  
Sarah Tavel is transitioning from general partner to venture partner at Benchmark.
 
VC Deals  
Aerospace startup Apex, which develops satellite buses and other spacecraft, raised a $200 million Series C led by Point72 Ventures and 8VC.

Austin-based Aalo Atomics, which manufactures small nuclear reactors and aims to mass-produce nuclear power plants, is raising a $100 million Series B, Axios reported.

Forge Nano, a Denver-based semiconductor and lithium ion battery maker, raised a $40 million round led by RockCreek and Ascent Funds.

IXI, a Finnish vision tech company creating autofocus glasses, closed a $36.5 million Series A led by Plural.

iwell, a Dutch startup focused on energy management, raised €27 million in a round led by Meridiam.

Blooming Health, the developer of a social services communications platform, raised a $26 million Series A led by Insight Partners.

Florida-based energy drink startup Gorgie raised a $24.5 million Series A led by Notable Capital, Fortune reported.

Eeden, a German textile recycling startup, secured an €18 million Series A led by Forbion.
 
PE Deals  
Apollo Global Management is acquiring a portfolio of European data centers from Blue Owl-backed Stack Infrastructure.

Blackstone-backed dog-sitting app developer Rover Group is acquiring Dublin-based Gudog, which offers a pet-sitting marketplace, Bloomberg reported.

Several PE firms, including Montagu and Bridgepoint, are exploring an acquisition potentially worth up to £400 million of Escode, a subsidiary of London-listed cybersecurity specialist NCC Group, Sky News reported.

Kohlberg & Co acquired electrical service and testing provider Resa Power from Bahrain-based Investcorp.

CVC Capital Partners and GRO Capital are exiting their investment in Omada, a Copenhagen-based identity governance software provider, to GRO Fund III and Kirk Kapital.

ALTÉRRA invested $100 million in Evren, an India-based renewable energy company.
 
Exits  
The Abu Dhabi Investment Authority is exploring a sale of its 50% stake worth about €2 billion in IFCO, a company that manufactures reusable plastic containers, Bloomberg reported.

Energy data and analytics provider Aurora Energy Research is in talks to be sold by CGE Partners in a deal that could value the company around £1 billion, Bloomberg reported.

InCred, an India-based lender backed by KKR, is mulling an IPO to raise $470 million, Bloomberg reported.

Creador-backed Malaysian retailer Eco-Shop is planning to raise 419 million ringgit (about $96.85 million) in an IPO, valuing the company at 7 billion ringgit (around $1.6 billion).
 
Fundraising  
KKR and Capital Group launched two debt funds for individual investors. The firms also have strategies combining listed stocks and buyouts slated for 2026, the Financial Times reported.

Escalate Capital Partners closed on $350 million in capital commitments for its fifth fund.
 
Investors  
Blackstone launched Proxity, a new pan-European logistics operator and developer.
 
Chart of the Day  
Source: Why all US crossover funds are averaging just 170 VC deals a quarter
 
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