PitchBook News - Taking the temp on healthtech

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The Daily Pitch: VC

December 6, 2022

The Daily Pitch is powered by PitchBook’s industry-defining research and best-in-class data

In today's Daily Pitch, you'll find:

Some PE investors are taking advantage of the cooling deals market to negotiate stronger indemnity provisions.

Healthcare-focused companies, particularly those in digital health, continue to attract VC interest at a robust pace.

Chart of the Day: Share of PE exit value by type, from our US PE Breakdown.

Today's Top Stories

Move aside, crypto: Generative AI takes tech VC attention in Q3

Hype around text-to-image AI models in Q3 2022 helped draw rapid VC investment in the generative AI space. But this did not stop deal activity from falling for the overall AI and machine learning vertical, where deal value declined 46.7% quarter-over-quarter.

Our recent report on AI and machine learning tracks 68 product categories, and only 20 are on pace to grow in VC funding in 2022—led by intelligent robotics, supply chain optimization and conversational AI.

The report maps out the market and notes the emerging opportunities and startups to watch. Generative AI, neural search and inference semiconductors are finding traction and scooping up deals in the current market. Company spotlights on AI unicorns Databricks and DataRobot show their evolving M&A and partnership priorities.

read the preview

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Taking the temp on healthtech: Deals and valuations stay resilient

(fizkes/Shutterstock)

In a year when everything in the VC market feels feeble, healthtech is looking relatively hale and hearty.

Healthcare-focused companies, particularly those in digital health, continue to attract investor interest at a robust pace compared to other verticals this year.

Healthtech startups have also seen their median valuation increase 33% compared to the 2021 figure, indicating that investors see recession-resilient opportunities within the vertical.

Recommended Reads

How the gates closed for redemptions on Blackstone's runaway real estate vehicle. [Financial Times]

Fed research shows that startups with Black founders get just a third of the VC capital raised by their peers. [Bloomberg]

Many small investors who piled into cryptocurrencies on FTX, BlockFi and other platforms are recognizing the perils of investing in an unregulated industry. [The New York Times]

Since yesterday, the PitchBook Platform added:

23

VC valuations

1783

People

591

Companies

21

Funds

See what our data software can do

Quick Takes

	The Daily Benchmark
	2011 Vintage Global VC Funds
	A message from Apex Group
	Our Corporate Services provide scalable solutions for back-office functions
	People
	ILPA names Jennifer Choi CEO
	VC Deals
	Runway hits $500M valuation
	Supplement specialist HealthKart picks up $135M
	SonoThera raises $60M+
	BeeHero flies off with $42M
	Loft Dynamics nabs $20M
	Giraffe360 grabs $16M
	Rezonate rakes in $8.7M in seed funding
	Exits & IPOs
	Circle calls off SPAC merger
	Fundraising
	Solo VC Ozi Amanat raises $300M

The Daily Benchmark

2011 Vintage Global VC Funds

Median IRR

20.24%

Top Quartile IRR

24.88%

2.14x

Median TVPI

Select top performers

Glilot Capital Partners

Passion Capital Fund

Union Square Ventures 2012 Fund

*IRR: net of fees

46 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

A message from Apex Group

Our Corporate Services provide scalable solutions for back-office functions

Apex has an experienced team in the US that provides strategic expertise for startups, tech companies, VCs, corporates, private equity funds, asset managers and SMEs.

Whether you are looking for project support, technical expertise, or to scale your team, Apex can partner with you to become an extension of your operation.

Apex provides customized solutions to meet your specific needs, which allows your team to focus on creating value.

The depth and scope of Apex's solutions include:

Accounting
Payroll
Tax
Human resources support
Employee benefits
Compliance
Business administration
Board support

Visit Apex's website to find out more

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People

ILPA names Jennifer Choi CEO

Jennifer Choi has been appointed CEO of the Institutional Limited Partners Association. Choi has been the acting CEO since June, and was previously managing director of industry affairs.

VC Deals

Runway hits $500M valuation

Runway, an AI developer specializing in creative content, has raised a $50 million Series C led by Felicis Ventures. The company has annualized revenue of around $1 million and is valued at $500 million with the new round, Forbes reported.

View details

View 3 competitors »

Supplement specialist HealthKart picks up $135M

HealthKart, an Indian company that sells health supplements and accessories, has raised a $135 million Series H led by Temasek. The deal values the startup at about $350 million, TechCrunch reported.

View round

View 1 competitors »

SonoThera raises $60M+

Gene therapy startup SonoThera has raised a $60.75 million Series A led by ARCH Venture Partners. Johnson & Johnson Innovation and Eli Lilly also joined the round.

View round

View similar company »

BeeHero flies off with $42M

BeeHero, a platform for commercial beekeeping, has raised $42 million in a Series B led by Convent Capital.

View round

View 3 competitors »

Loft Dynamics nabs $20M

VR pilot-training startup VRM Switzerland has raised $20 million and rebranded as Loft Dynamics. Craft Ventures, Sky Dayton and Up Ventures led the round.

View round

View similar company »

Giraffe360 grabs $16M

Giraffe360, which creates cameras for real estate professionals to map properties, has raised $16 million in a round led by Founders Fund, according to reports.

View round

View 3 competitors »

Rezonate rakes in $8.7M in seed funding

Cybersecurity startup Rezonate has closed $8.7 million in seed funding led by State of Mind Ventures and Flybridge.

View details

View similar company »

Don't miss our upcoming webinar

The crypto market has lost some of its luster since its resurgence in 2021, with values dropping and companies and investors alike leaving the industry. But there is still ongoing VC interest, and we predict a significant amount of deployed capital in the next few years.

Join our webinar to get the perspectives of industry investors and PitchBook emerging tech senior analyst Robert Le on how this technology can move forward. Key topics include:

How this crypto bear market is different from past downturns.

What investors are avoiding in this market and where they see opportunities.

Viewpoints on risk management, security flaws, regulations and other crypto trends.

Register now to secure your spot.

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Exits & IPOs

Circle calls off SPAC merger

Blockchain specialist Circle has terminated plans to merge with blank-check company Concord Acquisition. Circle, which enables businesses to send and receive cryptocurrencies, said it was profitable in Q3 and had $400 million in cash on hand at the end of the quarter.

View details

View 63 competitors »

Fundraising

Solo VC Ozi Amanat raises $300M

K2 Global, a venture firm led by solo VC Ozi Amanat, has closed a $300 fund that will be used to invest in early-stage startups in foodtech, climate tech and AI. The Miami-based firm has invested in Paytm, Spotify and Impossible Foods.

View fund

View 60 investments »

Chart of the Day

"IPOs accounted for roughly one-third of exit value in the last two years as bullish markets gave way to a flurry of private companies listing on the public market with elevated valuations.

In 2022, IPOs contributed a mere 1.6% of total market exit value as investors shied away from new issues amid market volatility, and valuations dropped with market correction."

Source: PitchBook's Q3 2022 US PE Breakdown

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Jennifer Choi CEO cooling deals market stronger indemnity provisions PE exit value US PE Breakdown The Daily Pitch

PitchBook News - Taking the temp on healthtech

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