Charting a European VC healthcare ecosystem

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The Daily Pitch: VC

June 21, 2024

Presented by Lucas Institute for Venture Ethics

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

VC dealmaking in the ecommerce sector ebbed to its lowest level in more than five years in Q1

Our market map explores the horizontal platforms segment of AI and machine learning

Which cities in Europe, the Middle East and Africa are sowing healthcare innovation?

Today's Top Stories

Which EMEA cities are home to healthcare innovation?

Healthcare VC investment in Europe, the Middle East and Africa is highly concentrated—with about 50% of deal value in just three locations: Paris along with London and Cambridge in the UK. But how do other cities stack up?

In our inaugural EMEA Healthcare Market Snapshot, senior analyst Aaron DeGagne unpacks VC, PE and public market trends in the region, highlighting opportunities in sectors such as healthcare IT and digital treatments and comparing VC activity in healthcare across cities.

read it now

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Market Map: Mega-deals dominate AI's horizontal platform startups

(Joey Schaffer/PitchBook News)

Mega-deals continue to reign in AI and machine learning. From Scale AI's $1 billion Series F to Elon Musk's xAI raising $6 billion, the space is fueled by hungry investors willing to pay a premium.

Our latest market map explores the horizontal platforms segment within the AI and machine learning vertical, where most blockbuster deals occur.

explore the market map

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A message from Lucas Institute for Venture Ethics

Trusted AI assessment designed by VCs for early-stage companies

Concerned about staying ahead of regulatory hurdles and meeting enterprise and government AI standards? The Lucas Institute's Trusted AI assessment is here to help you unlock the potential for accelerated growth! Designed with insights from limited partners, venture capitalists, leading tech teams, and policymakers, this 10-minute assessment is tailored for early-stage companies and their investors. By addressing potential regulatory challenges early, your portfolio companies can stay on track to meet their growth targets and scale faster.

Encourage your companies to start their RAI assessment now and pave the way for rapid, trustworthy growth.

Portfolio companies can start their RAI assessment here

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Shoppers could soon ditch search bar

As ecommerce innovators create new ways for consumers to find products, typing an item's name into Google could soon feel like a thing of the past, according to our latest Emerging Tech Research.

AI-powered applications will likely continue to increase in the sector, and certain markets have begun to shift entirely toward visual channels of product discovery over keyword searches.

Also in the report: VC ecommerce dealmaking fell to the lowest level in more than five years in Q1, at 83 deals totaling $1.7 billion. IPOs remained slow, but several digital commerce platforms could be inching closer to going public toward the end of 2024.

read the preview

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The alphabet soup of VC rounds needs unscrambling

(Mara Potter/PitchBook News)

Germany's Black Semiconductor recently raised €254.4 million (about $272.2 million) for its Series A. In April, Chicago biotech startup Xaira Therapeutics closed a $1 billion Series A, while generative AI company H Company pulled in $220 million for its seed round a few weeks ago.

The rounds show lofty amounts can be raised even in this challenging environment. They are also proof that the alphabetical labeling convention for funding rounds has become increasingly meaningless, particularly for early-stage companies, offering a skewed perspective on a startup's growth journey.

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Since yesterday, the PitchBook Platform added:

17

VC valuations

2358

People

800

Companies

25

Funds

See what our data software can do

The Daily Benchmark:
2016 Vintage European Real Estate Funds

Median IRR

7.87%

Top Quartile IRR

23.47%

0.78x

Median DPI

Select top performers

Bensell Host US Fund

Perella Weinberg Real Estate Fund III

NREP Nordic Strategies Fund II

*IRR: net of fees

13 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Semperis, a New Jersey-based cybersecurity startup, raised $125 million from JP Morgan and Hercules Capital.

Celcoin, a São Paulo-based banking-as-a-service startup, raised a $125 million investment led by Summit Partners.

Geneva's iOnctura, a developer of cancer treatments, closed an €80 million Series B led by Syncona.

Ummeed Housing Finance, an Indian provider of housing loans, raised roughly $76 million in a Series F from investors including A91 Partners and Norwest Venture Partners.

CesiumAstro, a startup developing space communication technology, raised a $65 million Series B+ led by Trousdale Ventures.

HeyGen, a generative AI startup specializing in realistic avatars, raised a $60 million Series A led by Benchmark at a more than $500 million valuation.

GrayMatter Robotics, a developer of robotics for manufacturing processes, raised a $45 million Series B led by Wellington Management.

PQShield, a UK-based post-quantum cryptography startup, secured $37 million in a Series B led by Addition.

Qblox, a Dutch quantum technology specialist, secured a $26 million Series A led by Quantonation and Invest-NL.

C12, a Paris-based developer of quantum processors, raised €18 million from investors including Varsity Capital and Verve Ventures.

Nexx Global, a Hong Kong-based logistics company, raised a pre-Series A round from investors including billionaire Li Ka-shing's firm, CK Asset Holdings, Bloomberg reported.

Don't miss our upcoming webinar

What are the benefits of a larger, more diverse, venture portfolio compared to a more concentrated focus? Our live discussion with professionals from Screendoor and Pioneer Fund will explore strategies around seed-stage portfolio construction.

Register now to secure your spot.

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PE Deals

Energean's operations in Italy, Egypt and Croatia have been acquired by The Carlyle Group for up to $945 million, The Wall Street Journal reported.

Discover Financial's $10 billion student loan portfolio could be acquired by KKR or The Carlyle Group as the two PE firms expand into credit, the Financial Times reported.

Great Day Improvements, a home improvement products company, has received an investment from Littlejohn & Co. to fund its acquisition of ELM Home & Building Solutions.

ZRG, a talent advisory and recruiting firm, received $120 million in debt financing from Main Street Capital.

Universal Refrigeration, an HVAC service provider, has been acquired by CoolSys, an Ares Management-backed company.

The board of UK-listed Alpha Financial Markets Consulting recommended a takeover offer from Bridgepoint. The 505 pence (about $6.40) per share bid represents a 51% premium to Alpha's April 30 closing price.

Healthcare retailer Health-E commerce has been acquired by HIG Capital.

Portfolio Companies

3i-owned discount retailer Action is looking to raise €1.75 billion in new leveraged loans. The capital, combined with €245 million in surplus cash, will be used to distribute €2 billion to its owners through a share buyback. 3i took a controlling stake in Action in 2011.

Exits & IPOs

CAES, an aerospace and defense electronics specialist, will be acquired by Nasdaq-listed Honeywell for $1.9 billion from Advent International.

Shoreline, which develops software to fix computer systems, will be acquired by Nvidia for about $100 million, Bloomberg reported.

MapLight Therapeutics, which develops treatments for neurological and psychiatric disorders like schizophrenia and Alzheimer's, could raise around $200 million in its upcoming IPO, Bloomberg reported.

Cinclus Pharma, a VC-backed Swedish biopharmaceutical company, raised 715 million Swedish kronor (around $68 million) in its IPO.

PE-backed alcoholic beverage company Allied Blenders and Distillers is looking to raise up to $180 million via a Mumbai IPO.

Fundraising

Keystone Partners, a Tokyo-based investment firm, is launching a 100 billion Japanese yen fund (about $630 million) to purchase cross-shareholdings of other businesses, Nikkei reported.

London-based Columna Capital has reached a €290 million close on its third fund. The firm typically invests up to €50 million in lower middle-market buyout and growth deals.

NEA has raised $78 million of a special purpose vehicle targeting $140 million, according to SEC filings.

Investors

General Catalyst is acquiring Indian early-stage investor Venture Highway.

Corrections

In Wednesday's newsletter, a fundraising brief incorrectly stated that Pritzker Private Capital was co-founded by J.B. Pritzker. It was co-founded by his brother, Tony Pritzker.

Chart of the Day

Source: 2024 Australia & New Zealand Private Capital Breakdown

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Charting a European VC healthcare ecosystem

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