How startups are reshaping clinical trials

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The Daily Pitch: VC

July 24, 2020

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Today's Top Stories

SpaceX has $1B funding on its radar at $44B valuation

SpaceX's Falcon 9 rocket launched in May with two astronauts aboard, the first human spaceflight from the US in nearly a decade.
(Joe Raedle/Getty Images)

SpaceX is in talks to raise up to $1 billion at a $44 billion valuation, according to Bloomberg. Earlier this year, Elon Musk's company was reportedly valued at around $36 billion.

The Hawthorne, Calif.-based company has set a prolific fundraising pace, closing four VC rounds totaling more than $1.6 billion since the start of 2019. The new deal, which would reportedly bring in between $500 million and $1 billion, could be the space company's largest single haul since 2015, when it raised $1 billion in a round led by Fidelity Investments and Alphabet, according to PitchBook data.

The new cash would go toward commercializing the Starlink satellite internet service, as well as rocket test flights, according to CNBC. Analysts at Morgan Stanley reportedly believe the company could eventually be worth up to $175 billion, with the majority of that value tied to satellite internet operations.

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Demand for clinical-trial recruitment provides opportunity for startups

(sasirin pamai/Getty Images)

The pandemic has sped up drug development, but the industry was already surging: The clinical-trial market is expected to be worth $65 billion by 2025. All that testing will require a steady flow of patients who are willing to try out new medications, potentially providing an opportunity for startups to help keep the pipeline full.

In our latest research note, Transforming Clinical-Trial Patient Recruitment and Retention, PitchBook analysts find:

Startups in the space are aiming to attract and keep patients involved in clinical trials by creating monitoring technology and personalized platforms
More complex studies and regulatory requirements are boosting the demand for patients

read it now

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Weekly Recap

In case you missed it:

• Darryl McDaniels of hip-hop group Run-DMC has taken his mental health advocacy to a new level with a recent seed investment.

• The UK has announced an investigation into the country's capital gains tax system, meaning that PE executives who receive carried interest could be facing a significant tax hike.

• The Carlyle Group has revealed that Glenn Youngkin will depart his role as co-CEO, marking the end of a 25-year career at the firm.

Carlyle co-CEO Glenn Youngkin speaks at a US Chamber of Commerce event in 2017. (Chip Somodevilla/Getty Images)

• The pandemic has left much of the sports world with revenue shortfalls after game cancellations, but some leagues have found fans in the private equity industry.

• A group of US investors is reportedly considering a deal to purchase a majority stake in TikTok from parent company ByteDance.

• Vista Equity Partners portfolio company Jamf has gone public in a supersized IPO.

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Recommended Reads

After design flaws led to consumer injuries and device failures, Juul quietly revamped its product. Now it may be drawing the ire of the Food and Drug Administration. [Bloomberg]

While its larger competitors—and the US government—struggled, a regional supermarket chain provided a master class in pandemic preparedness. [Texas Monthly]

How former Nissan CEO Carlos Ghosn escaped Japan, according to the ex-Green Beret who snuck him out. [Vanity Fair]

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Quick Takes


	The Daily Benchmark
	2017 Vintage Global Venture Funds
	VC Deals
	Chinese grocery delivery company boxes up $495M
	Talkdesk takes in $143M Series C
	CyCognito scores $30M for cybersecurity tech
	Portfolio Companies
	Tesla claims in lawsuit Rivian stole trade secrets
	TikTok unveils $200M content creator fund
	Exits
	Junlebao ponders dual China listing
	Fundraising
	Longwood secures $170M for fifth fund

The Daily Benchmark

2017 Vintage Global Venture Funds

Median IRR

14.52%

Top Quartile IRR Hurdle Rate

21.21%

1.18x

Median TVPI

Select top performers

Alta Partners NextGen Fund I

Frazier Life Sciences IX

Maven Ventures Fund II

*IRR: net of fees

40 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Chinese grocery delivery company boxes up $495M

MissFresh, the provider of an online grocery delivery platform, has reportedly collected $495 million in a round led by China International Capital Corporation, with participation from ICBC International Securities, Tencent and others. The Beijing-based startup was valued at $3 billion prior to the round and operates more than 1,500 mini-warehouses, according to Bloomberg.

Additional Investors:

Abu Dhabi Capital, Goldman Sachs, Tiger Global, Industrial and Commercial Bank of China

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Talkdesk takes in $143M Series C

Talkdesk, the San Francisco-based provider of a cloud contact center that connects support and sales teams with customers, has raised $143 million from investors including Franklin Templeton, Willoughby Capital, Skip Capital and Lead Edge Capital. Talkdesk's valuation has topped $3 billion with the latest financing. The startup was valued at $1 billion in 2018, according to a PitchBook estimate, up from a $316 million valuation in 2015.

Additional Investors:

Viking Global Investors, Top Tier Capital Partners, Threshold Ventures

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CyCognito scores $30M for cybersecurity tech

Cybersecurity startup CyCognito has raised a $30 million Series B led by Accel, with support from existing backers Lightspeed, Sorenson Ventures and UpWest. Accel partner Eric Wolford will join the Palo Alto-based company's board as part of the funding. CyCognito, which raised an $18 million Series A last November, helps businesses discover which of their systems and assets are at risk of a cyberattack.

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Portfolio Companies

Tesla claims in lawsuit Rivian stole trade secrets

Tesla has filed a lawsuit against Rivian, alleging the electric vehicle maker stole trade secrets and poached employees, according to reports. Tesla claimed in the suit that 178 Rivian employees once worked for Tesla, and said four former employees took confidential information, according to reports. Rivian has reportedly denied the allegations.

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TikTok unveils $200M content creator fund

TikTok has launched a $200 million vehicle to finance content creators on its short-form video-sharing app. The cash will be distributed throughout the coming year and TikTok is expecting the fund to grow over that time. Earlier this year, the company announced a $50 million fund aimed at helping creators produce learning content.

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Exits

Junlebao ponders dual China listing

Junlebao Dairy is eyeing a dual public listing in Hong Kong and mainland China, according to Bloomberg. The dairy products producer, which is backed by Ping An Capital, Primavera Capital and Sequoia China, could reportedly raise at least $700 million in the Hong Kong offering. Based in China's Hebei province, Junlebao produces infant milk powder, yogurt and liquid milk.

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Fundraising

Longwood secures $170M for fifth fund

Early-stage VC firm Longwood Fund has closed its fifth namesake vehicle with about $170 million in commitments. Since its founding in 2010, the Boston-based firm has raised over $475 million to create and back biotech and therapeutics companies. Longwood's portfolio includes TScan Therapeutics, Lassen Therapeutics and ArcherDX, which Invitae agreed to purchase in June in a deal valuing the company at $1.4 billion.

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