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 investor Morningstar, 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.”
The full PitchBook Profile, which includes the company’s funding history, deal details, and valuation has been made available on the PitchBook Platform.