Turns out all those dire warnings last year were right on target.
Venture capital funds performed pretty poorly last year, to put it mildly, according to a PitchBook performance report. After a peak in the second quarter of 2021, where rolling one-year IRRs briefly hit 74.9%, performance for VC funds was down to -17% by the fourth quarter of 2022. Here’s a look at performance over the last decade:
With the IPO market effectively halted in 2022, distributions waned and contributions shrank, too. That took a toll on net cash flow. Take a look:
All of this has had an impact on fundraising for this year. Here’s a look at fundraising data, as of Sept. 14, 2023:
Another reason for the slowed fundraising likely has to do with the amount of money either sitting in companies without a clear path to exit, or capital still sitting on the sidelines in the form of dry powder, waiting to be deployed. Here’s a look at the amount of dry capital in the market:
See you tomorrow,
Jessica Mathews
Twitter:@jessicakmathews
Email: [email protected]
Submit a deal for the Term Sheet newsletter here.
Joe Abrams curated the deals section of today’s newsletter.
VENTURE DEALS
- Stoke Space, a Kent, Wash.-based developer of a fully reusable space rocket, raised $100 million in new funding. Industrious Ventures led the round and was joined by the University of Michigan, Sparta Group, Long Journey, and others.
- Harri, a New York City-based employee management company for hospitality businesses, raised $43 million in Series B funding. Atalaya Capital Management led the round and was joined by Golub Growth and others.
- LimmaTech, a Schlieren, Switzerland-based vaccine developer, raised $37 million in Series A funding from Adjuvant Capital, AXA IM Alts, and the Novo Holdings REPAIR Impact Fund.
- TileDB, a Cambridge, Mass.-based data management platform, raised $34 million in Series B funding. AlleyCorp led the round and was joined by Two Bear Capital, Nexus Venture Partners, Big Pi Ventures, Intel Capital, Uncorrelated, and others.
- HarfangLab, a Paris, France-based cybersecurity provider for companies, raised €25 million ($26.4 million) in Series A funding. Crédit Mutuel Innovation led the round and was joined by MassMutual Ventures and Elaia.
- Tquila Automation, an Austin, Texas-based company designed to integrate company automation tools, raised $20 million in Series A funding. Delta-v Capital led the round and was joined by Tquila and Momentum Partners.
- SuperOps.ai, a Claymont, Del.-based platform designed to put IT processes in one place, raised $12.4 million in Series B funding. Addition and March Capital led the round and were joined by Matrix Partners.
- Orus, a Paris, France-based insurance provider, raised €11 million ($11.6 million) in Series A funding. Notion Capital and VR Ventures/Redstone led the round and were joined by existing investors Frst, Partech, Portage, and angel investors.
- Ounce, a Washington, D.C.-based company that coordinates health care plans and provides health services to low-income housing communities, raised $5.2 million in seed funding. Meridian Street Capital and Flare Capital Partners led the round and were joined by Metrodora Ventures and others.
- Goodhood, an Ann Arbor, Mich.-based subscription service for car maintenance and repairs, raised $2.6 million in seed funding from Bullish, Mucker Capital, Okapi Capital, New Age Ventures, Kubera Venture Capital, and Impact Ventures.
- Komment, a Munich, Germany-based platform using AI for software and code documentation, raised $1 million in pre-seed funding. Craft Ventures led the round and was joined by angel investors.
PRIVATE EQUITY
- Aeven, a portfolio company of Agilitas Private Equity, agreed to acquire Sentia, a Herlev, Denmark-based company designed to help other companies integrate into the cloud. Financial terms were not disclosed.
- QHP Capital acquired Applied StemCell, a Milpitas, Calif.-based cell and gene therapy specialist. Financial terms were not disclosed.
Correction, Oct. 10, 2023: A previous version of this newsletter misspelled the name of the company Aeven.
OTHER
- Bristol-Myers Squibb agreed to acquire Mirati Therapeutics, a San Diego-based developer of cancer therapeutics, for $4.8 billion.
- Tquila Automation acquired Element Blue, a Houston, Texas-based AI-powered healthcare portal for patients and providers. Financial terms were not disclosed.
FUNDS + FUNDS OF FUNDS
- Accolade Partners, a Washington, D.C.-based investment firm, raised $325 million in their second fund focused on venture and growth-equity funds controlled by women and minority managers.
PEOPLE
- ICG, a London, U.K.-based private equity firm, hired Sarah Faulkner as chief operating officer. Formerly, she was with Goldman Sachs.
This is the web version of Term Sheet, a daily newsletter on the biggest deals and dealmakers. Sign up to get it delivered free to your inbox.