PitchBook, the premier data provider for the private and public equity markets, recently released its 2020 Emerging Tech Outlook, 2020 Private Equity Outlook and 2020 Venture Capital Outlook. The annual reports include detailed predictions on the investment and industry trends that PitchBook analysts foresee impacting the coming year. Each report also includes a scorecard detailing the results of PitchBook’s 2019 Outlooks. Download the full reports to see in-depth data and analyst rationale behind each of the predictions below:
2020 Emerging Technology Outlook
- PitchBook expects electric air taxi startups to receive a record level of VC investment in 2020.
- Autonomous vehicle startups are prime acquisition targets for tech companies and automakers in 2020.
- Bank fees and deposit interest rates will be the next battleground between incumbent banks and fintech companies for retail financial services.
- Large insurance corporations will fuel a record year of insurtech M&A.
- The container security startup space will see additional M&A and a mega-deal in 2020.
- Cellular low-power wide-area networks (LPWAN) will continue to grow rapidly and gain the upper hand in the IoT protocol wars.
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2020 Private Equity Outlook
- PE fundraising will fall below 2019 totals.
- PitchBook expects to see another acquisition of a major alternative asset manager.
- GPs will increasingly hold some of their top-performing assets longer.
- The big four public GPs will expand their strategy offerings at twice the rate of comparable GPs.
- Sovereign wealth funds and pension plans will become more sophisticated investors, increasing control over investments.
- VC-to-PE buyouts will continue to proliferate.
- There will be continued expansion in growth equity deals.
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2020 Venture Capital Outlook
- The median pre-money valuation for seed-stage companies will eclipse $8.5 million.
- 2020 will mark a new annual record for US mega-deals.
- CVC activity will reach a new record in 2020.
- The median US VC fund size will top $110 million, reaching a decade high.
- SoftBank’s Second Vision Fund will not close at its target of $108.0 billion.
- At least three direct listings of VC-backed companies valued over $1 billion will close in 2020.
