Private Market: Sector Level

|| Sector-level analysis as of September 30, 2024

PM50 Growth index is up 3% and volatility of its ROI is 14%.

Neobank sector has the highest ROI at 16.1%.

Banking sector has the highest volatility of ROI at 51.8%.

Food sector has the lowest ROI at -12.3%.

Entertainment sector has the lowest volatility of ROI at 5.6%.

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PM50 Growth Quarterly ROI

Private market ROI is on the rise.

PM Insights data points to a continued rebound in the private market with 3 quarters of positive ROIs, though the pace of the rebound had slowed from the previous quarter.

Seasonality may also have been at play with the first 6 weeks being slower and negative overall, with more activity and positive returns coming from mid August onwards.

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_{Please note that PM Insights added a number of brokers with significant historical data sets and this led to an update of the whole historical data, leading to a change in past ROI figures.}

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Q3 '24 Sector ROI

Two thirds of PM Insights sector benchmarks are in the red for Q3.

The likes of Banking, Neobank, Financial & Payments lead the pack in terms of ROI. This has largely been driven by a huge rise of Revolut, that was sent rocketing as a result of their UK banking license approval. Chime and Airwallex may have also caught some of that wind in their sails, posting solid (20%+) returns for the quarter.

Alternatively, Defi & Blockchain have turned negative for this quarter,  underperforming the broader private market along with Logistics, Food, & Analytics, which continue to face headwinds.

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Q3 '24 Sector Volatility

Lower ROI volatility in Q3, with an average of 21% (vs 30% in Q2).

The volatility of the ROI is calculated as the average movement of the ROI over the 90 days prior to September 30, 2024.

Overall observed volatility is lower this quarter vs the previous one- the best-performing sector also being one of the most volatile (Banking).

Conversely, the headline PM50 Growth benchmark saw much lower volatility in Q3, dropping to just 6% this quarter vs 55% in Q2.

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6M Average Bid & Ask Spread per Sector

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Median Revenue Multiple per Sector

Revenue multiples for the most active sector benchmarks remain stable.

In 2021, popular private sectors saw peak median revenue multiples of 40-80x. However, 2022 brought a market cooldown, with multiples declining and showing significant inter-sector variation.

Since early 2023, revenue multiples have compressed substantially across all sectors, with differences between sectors narrowing. The most active private sectors have experienced drastic multiple reductions from their 2021 peaks, and have remained stable since the start of the year with slight increases seen in Data & Payments.

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^{Note: The brief spikes in the data are due to new funding rounds that occurred}