PitchBook News - VCs chase fresh medical tech

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The Daily Pitch: VC

August 18, 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:

VC investment in new technologies prevented medtech from flatlining in Q2

Telehealth startups see adolescent mental healthcare as a growing opportunity

Kimmeridge, unfazed by apathy for oil-and-gas funds, tries out a bold integrated gas strategy

The first of our quarterly Country Snapshots unpacks market trends in the UK

Today's Top Stories

Medtech regains some strength

VC funding for medical tech skyrocketed to $19.7 billion in 2021 before plummeting, and funding this year could remain moderately below 2022's levels.

According to our Q2 2023 Medtech Report, deal count and value in the sector have increased since the first quarter, with a larger array of medtech categories seeing $100 million-plus VC deals—including surgical robotics and neurostimulation.

VCs are also intrigued by new technologies related to precision medicine, sleep disorder treatments and mixed-reality surgical navigation. And with improved hospital margins and robust patient interest in elective surgeries, the prognosis is good for investors to return to the space.

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Can telehealth startups fill the gap in adolescent mental healthcare?

(Jenna Pluimer/PitchBook News)

Telehealth VC investment is down over 80% from its peak of $2.2 billion globally in Q1 2021, but investors are eyeing adolescent mental healthcare as a growing opportunity to serve an unmet need.

With studies and reports citing one in three young people struggling with mental illness and concerns over the loneliness epidemic, innovators are seeking ways to improve youth mental healthcare despite significant obstacles.

Recommended Reads

This tomato sauce is delicious. It's also worth billions of dollars. [The Wall Street Journal]

Wall Street turns to AI to solve a WhatsApp compliance nightmare. [The Information]

Peloton looks to jump-start growth by becoming a workplace perk. [Bloomberg]

Since yesterday, the PitchBook Platform added:

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VC valuations

2132

People

575

Companies

14

Funds

See what our data software can do

The Daily Benchmark:
2015 Vintage Global PE Funds with $250M-$500M

Median IRR

13.41%

Top Quartile IRR

21.14%

0.85x

Median DPI

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Sunstone Partners I

Lead Edge Capital III

Tritium I

*IRR: net of fees

26 Funds in Benchmark »

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VC Deals

Pivotal Commware, a 5G infrastructure company, has raised a $102 million Series D led by Gates Frontier and Tracker Capital.

Blockchain startup ZetaChain has raised $27 million from investors including Vy Capital, Blockchain.com and Human Capital.

Cybersecurity startup ProjectDiscovery has raised a $25 million Series A led by CRV.

Visana Health, a virtual women's health clinic, has raised $10.1 million in a seed round co-led by Flare Capital Partners and Frist Cressey Ventures.

Procurement software company Mercanis has raised $10 million from investors including Signals Venture Capital, DI Technology and Speedinvest.

Stockholm-based Apica has secured $10 million from Industrifonden, SEB Group and Oxx. The startup helps companies test applications using synthetic data.

Fintech company Micronotes has raised an additional $2 million from BankTech Ventures for its Series C, bringing the round's total to $7.5 million.

PE Deals

Invenergy, CDPQ and Blackstone have acquired American Electric Power's unregulated renewables portfolio for $1.5 billion.

Accel-KKR has invested €60 million in Ireland's Ocuco, a provider of eyecare software solutions.

Motive Partners has agreed to invest up to $50 million in buy now, pay later specialist Splitit Payments, which will receive the first $25 million tranche after delisting from the Australian Security Exchange.

TPG Rise Climate has agreed to buy a majority stake in A-Gas, a British developer of refrigerant gases, from owners including KKR, which will retain a minority stake.

Several PE firms are among the potential suitors for the China poultry unit of US meat processor Tyson Foods, according to reports.

The Abu Dhabi Investment Authority and CapitalG have agreed to invest in TeamSystem, which offers software to businesses and accountants in Italy and Spain.

Exit & IPOs

Antin Infrastructure Partners is looking to sell UK children's care home business Hesley Group, the Financial Times reported. In April, a government investigation found evidence of significant failings at the group's facilities.

BGF has exited UK-based software development company Amdaris to US-listed Insight Enterprises.

Corporate M&A

UK-listed defense company BAE Systems has agreed to acquire US sector peer Ball Aerospace for $5.6 billion in cash.

Chart of the Day

Source: PitchBook's Q2 2023 Global M&A Report

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PitchBook News - VCs chase fresh medical tech

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