PitchBook Data Inc. said Wednesday that it raised $10 million in financing from existing investor Morningstar Inc. Seattle-based PitchBook provides research, data, and technology for professionals in the private equity, venture capital and M&A markets. PitchBook raised $4.25 million in a Series A round in 2009.
SEATTLE—PitchBook Data, Inc., a trusted resource for research, data, and technology for professionals in the private equity, venture capital, and M&A markets, has raised $10 million in financing from existing investorMorningstar, Inc., nearly doubling the strength of PitchBook’s balance sheet and bringing Morningstar’s ownership stake to about 20%. This is the second equity round for the nearly nine-year-old company, now valued at $160 million. The Seattle-headquartered company has otherwise been revenue-funded, following a $4.25 million Series A round that closed in 2009. PitchBook has grown significantly and has generated positive cash flow over the past five years. In 2015, sales rose more than 68% to $31 million, and the company is targeting similar growth in 2016.
“Our growth stems from the continued focus on providing our customers with the best data, technology, and service in the industry,” John Gabbert, PitchBook founder and CEO, said. “We believe that when our customers have access to unparalleled private market information, they are able to find more opportunities and make better, data-informed decisions. We’re proud to have the continued support of Morningstar, a trusted provider of investment research and data.”
Today, PitchBook has more than 1,400 customers—which include top-tier private equity and venture capital firms and investment banks, as well as a number of Fortune 500 companies, prominent institutional investors, and other service providers. The company’s core product, the PitchBook Platform, is a powerful database and research tool that enables users to access and analyze details across the entire private investment lifecycle—from fund initiation to company exit. This includes comprehensive data on companies, investors, executives, and advisors, in addition to hard-to-find information such as valuations, deal terms, fund performance, and benchmarks.
The additional capital will further expand PitchBook’s data coverage and fuel the development of additional features and product extensions. To gather its data, PitchBook combines the collective intelligence of more than 240 research professionals with powerful machine-learning and natural language processing technologies. This is followed by a stringent quality assurance and verification process that relies on direct contact with the individuals and firms involved in these transactions. Additionally, this financing will help to support PitchBook’s growing teams in Seattle, New York, and London. The company plans to hire more than 100 new employees this year, bringing its total headcount to more than 600.
“Like Morningstar, PitchBook is demystifying a corner of the investment landscape that is otherwise hard to access for many,” Kunal Kapoor, president of Morningstar and member of PitchBook’s board of directors, said. “PitchBook has a top-quality database, and we’ve been impressed with the company’s dedication to accuracy, customer service, and innovation—qualities we value highly at Morningstar.”
PitchBook is the industry’s leading resource for meaningful information about global M&A, PE and VC activity. PitchBook empowers clients to make the most informed business decisions by providing them with the highest quality information on the entire investment lifecycle through its flagship product, the PitchBook Platform. This award-winning, web-based platform features a powerful suite of integrated technology that meets the diverse, data-driven needs of the private markets.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 17 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $170 billion in assets under advisement and management as of Sept. 30, 2015. The company has operations in 27 countries.