PitchBook News - Generative AI transforms healthcare IT

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The Daily Pitch: VC

June 1, 2023

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

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

Find out which parts of the healthcare system could get transformed first by AI in our Q1 2023 Healthcare IT Report.

Adams Street has embraced the secondary market in this tough fundraising environment by closing on a $3.2 billion fund.

Lightmatter, a startup working to meet the computer power demands of large language models like GPT-4, has tripled its valuation.

Today's Top Stories

Generative AI propels future of healthcare IT

VC deals in healthcare IT have picked up from the vertical's low point in late 2022, with 70 rounds accounting for about $1.3 billion raised in Q1. They're not blockbuster numbers, but the outlook for healthcare IT deals is bullish, particularly for generative AI and technology that supports interoperability.

Our Q1 2023 Healthcare IT Report highlights need-to-know VC and PE deals from the period and addresses which parts of the healthcare system AI could transform first—and when.

read the preview

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Lightmatter triples valuation to solve generative AI's energy crunch

(dotshock/Shutterstock)

For a long time, there was a universal truth in computing: The power of a chip doubles every 18 months.

But that exponential rate no longer holds up. Now, massive advances in generative AI are spurring unprecedented demand for computing power needed to develop and run large language models.

"If you're owning chips at Google and at Intel, you see where this is going and it's very concerning," said Nick Harris, whose startup, Lightmatter, offers an energy-efficient solution to these increasing power demands and just raised $154 million.

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Inside a Silicon Valley startup accelerator during the AI boom. [The New York Times]

Ed Sheeran's trial for copyright infringement of Marvin Gaye and Ed Townsend's "Let's Get It On" highlights how hard it is to draw the property lines of pop. [The New Yorker]

Since yesterday, the PitchBook Platform added:

20

VC valuations

2166

People

683

Companies

18

Funds

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The Daily Benchmark:
2011 Vintage Global Debt Funds

Median IRR

8.67%

Top Quartile IRR

10.69%

1.15x

Median DPI

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Davidson Kempner Long-Term Distressed Opportunities Fund

Brightwood Capital SBIC I

FCP Fund II

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29 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Strive Health, a healthtech company working on kidney care solutions, has raised a $166 million Series C led by NEA and CVS Health Ventures, among others.

Dublin-based NomuPay, which offers an end-to-end payment platform, has raised $53.6 million in a round led by Finch Capital.

Magic, which helps companies create Web3 wallets, has raised $52 million led by PayPal Ventures.

Milan-based open-finance specialist Fabrick has secured €40 million from investors including Mastercard, according to reports.

Anocca, a developer of cancer cell therapies, has raised 400 million Swedish kronor (around $37 million) in a round led by AMF and Mellby Gård.

Hyro has raised a $20 million Series B led by Macquarie Capital for its AI-powered conversation platform.

Vartana, a B2B sales closing and financing platform, has raised a $20 million Series B led by Activant Capital.

Data management startup Alcion has secured $8 million in seed funding from angel investors.

PE Deals

Trinity Hunt Partners has acquired a majority stake in Centricity Research, which conducts clinical trials in various stages and therapeutic areas in the US and Canada.

PSG has led a $175 million growth equity round for Hostaway, a software provider for vacation rental management founded in 2015.

Morgan Stanley and Clairvest Group have invested in Top Aces alongside existing shareholder CDPQ. Top Aces trains armed forces in the US and elsewhere to operate fighter aircraft.

The Carlyle Group will acquire Czech optical solutions company Meopta Optika to aid in the company's international presence.

DCP Capital is buying US agribusiness Cargill's Chinese poultry division in a deal expected to close this year.

IK Partners plans to invest in French fintech company Linxea-Irbis, joining existing investors NextStage AM and Matignon Investissement.

Fundraising

Integrum has closed its inaugural fund, called Integrum Capital Partners, on $1.1 billion. The fund, which focuses on tech-enabled services, has invested in USI Insurance Services, Evertree Insurance, Strategic Risk Solutions and MerchantE.

Baidu, a Chinese search engine, is setting up a $145 million venture fund to invest in startups with AI applications.

Chart of the Day

"The IT sector, on the other hand, remains relatively small in France, representing less than 5% of the MSCI France index. This helps explain why we saw no public-to-private deals in France in Q1 2023 and only three in 2022. ... Another possible explanation is that France is very protective of its assets, which are often concentrated with a handful of shareholders reluctant to cede control."

Source: 2023 France Private Capital Breakdown

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PitchBook News - Generative AI transforms healthcare IT

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