As the pandemic continues to incite change across the private market landscape, firms the world over are adjusting to a dynamic new business-as-usual. In a shifting environment, PitchBook customers continue to rely on the platform for actionable private market intelligence.
From a Finnish investment firm and South Korean software startup to a public library in the US, actionable insight on the flow of capital across VC, PE and M&A is vital—when market conditions are steady and when they aren’t.
Tesi
Location: Helsinki, Finland
Year founded: 1995
Total investments: 263
Aimed at developing Finland’s venture capital and private equity markets, state-owned Tesi has more than a billion euros in assets under management, co-invests directly with local and international investors and commits capital to Nordic and European funds.
Prior to the COVID-19 outbreak, Tesi relied on PitchBook to source deals in a fast-changing and competitive environment. Using PitchBook’s data on more than three million private companies, they were able to discover Finnish businesses within their target industry verticals and discern which were most likely to be seeking additional funding in the near-term future. Before, Tesi used PitchBook’s analyst reports—including the European Venture Report—to develop a better understanding of specific sectors. Vital to gathering information, the company also utilized PitchBook to see previous transactions in a space to gain insight on active companies and investors, as well as multiples and telling market trends.
“I’ve been happy to see PitchBook activating itself on the research-side by publishing reports and hosting webinars on the influence of the pandemic on the VC and PE markets.”
The impacts of the pandemic are far-reaching and immense, and no firm—including Tesi—is immune to the market volatility it created. For Tesi, a counter-cyclical firm, the pandemic means increased investment volumes. Tony Nysten, investment manager at Tesi, says his firm continues to leverage PitchBook for vital private market intel to plan next steps in the face of uncertainty. “I’ve been happy to see PitchBook activating itself on the research-side by publishing reports and hosting webinars on the influence of the pandemic on the VC and PE markets,” he says. “The environment is changing quickly, and I’m looking forward to even more analysis on how the pandemic is impacting the behaviors of different investor types.”
Learn about all the ways Tesi uses PitchBook.
StradVision
Location: Pohang, South Korea
Year founded: 2014
Financing status: Venture capital-backed
South Korea-based StradVision builds software to enable autonomous vehicles to recognize objects outside of the car, decipher what they are and interact with them—from traffic lanes to deer. The deep learning and camera-based vision processing technology startup completed its $27 million Series B funding round in December 2019 and has been working to expand its footprint since.
Pre-pandemic, StradVision counted on PitchBook to map the competitive landscape. With access to hard-to-find information on similar companies—including pre- and post-money valuations, round-by-round cap tables and detailed series terms—StradVision was able to more accurately assess the value of its own business and use that insight to inform negotiations with investors. “Before, we relied on public data,” Hyung-Tae Kim, CPA and vice president of finance at StradVision says. “PitchBook gives us the ability to see other companies’ fundraising status, how much they’ve raised, and what their post-valuation is—which gives us an objective location of where we stand.”
“Without the option to meet with investors or participate in industry events to acquire market intelligence in real-time, PitchBook enables us to monitor the landscape and stay in-the-know.”
StradVision has always relied on PitchBook for gathering up-to-the-minute intelligence on the overall market, the firm’s partners and competitors from both business and investment perspectives. None of that has changed in light of recent shifts associated with COVID-19. In a dynamic and volatile new environment, StradVision still turns to PitchBook for accurate, objective data. “Without the option to meet with investors or participate in industry events to acquire market intelligence in real-time, PitchBook enables us to monitor the landscape and stay in-the-know,” Marketing Manager John Oh says.
Learn about all the ways StradVision uses PitchBook.
Spokane Public Library
Location: Spokane, Washington, USA
Year founded: 1894
Collection size: 423,107
Washington’s second-largest city and home to more than 200,000 residents, Spokane is known for its architecture, riverfront parks and rich arts and culture. The city’s VC-backed startup landscape includes companies like cyber risk management platform RiskLens, employee health plan management platform Arevo Health and Oddjobbers, which connects college students with customers who need help around the house.
The Spokane Library system serves the entire metro area via its branch locations, bookmobile and a variety of online services. In partnership with the Spokane County Library District, Business Librarian Mark Pond provides local entrepreneurs and business owners with one-on-one consults and resource support along their journeys. According to an article in the Spokesman-Review, the library—with Pond’s help—became the first in the nation with PitchBook access meant to support local businesses. “For the companies that are looking for venture capital funding, it’s really helpful to have the industry standard tool available to them when they come in and consult with me,” Pond said in the interview.
“For me to be able to convey that to our regional political and business leaders is really helpful as we look to restart our economy.”
The most valuable insight PitchBook provides right now, Pond says, is the 90,000-foot view of where capital is flowing. “For me to be able to convey that to our regional political and business leaders is really helpful as we look to restart our economy. How much money is flowing into ghost kitchens? Do we need to rethink any regulatory schemes for food services based on that?,” he says. Although PitchBook is accessible by residents through Pond year-round, that access could be especially relevant during COVID-19—as founders are conscientiously plotting their next steps. “We are spending $100,000 a per year just for business research tools. There’s zero startups anywhere in the nation that are going to spend $100,00 on market research,” Pond told the local newspaper. “The library can step in and reduce that scope of risk for our local businesses. It’s a win for them and it’s a win for the Spokane economy.”
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For more about how firms can source deals outside their traditional channels and find opportunities in the current environment—with a focus on distressed investing—check out the recording of this recent webinar. To dive deeper into PitchBook’s coverage of COVID-19, download our recent analyst note examining its influence on the US VC market or see our news team’s ongoing reporting on the outbreak.
