PitchBook News - VCs target patient payment market

Read online | Don't want to receive these emails? Manage your subscription.

PitchBook

Log in

The Daily Pitch: VC

April 28, 2021

Like our newsletter? The data comes from the PitchBook Platform — our data software for VC, PE and M&A

Today's Top Stories

New technologies target growing patient payment market

(Altayb/Getty Images)

The rise of high-deductible health plans has exposed the shortcomings of existing healthcare payment systems, and is one of the many drivers behind the growth of the patient payment market.

PitchBook's latest analyst note explores the need for innovative technologies and how the trend is impacting venture capital interest. Among the takeaways:

VC funding for patient billing providers is on the rise, with more than $270 million raised in Q1 2021. The US patient payment market is estimated to reach $15 billion by 2027.

From streamlining the process of verifying insurance coverage to estimating patient obligation, startups are developing several technology-based approaches to improving the current status quo.

The healthcare payments space has a higher level of complexity and a lower level of transparency than other consumer payment sectors, resulting in less opportunities for cross-industry overlap.

read it now

Share:

US VC continues its strong run with another record-breaking quarter

The US venture industry's 2020 growth spurt showed no signs of abating during a record-breaking first quarter. Dealmaking, exit and fundraising activity all continued at or near historical highs.

Transactions of all types continued to swell, as mega-deals, large funds and outsized IPOs dominated capital flows throughout the market.

The Q1 2021 PitchBook-NVCA Venture Monitor, sponsored by Silicon Valley Bank and Secfi, now includes league tables ranking the industry's most active players. The report presents data and analysis to explore the significant trends that shaped the VC market over the last three months, including SPAC market growth, a boom in life sciences and a surge in valuations. Other key takeaways include:

Three-quarters of all US VC investment dollars were deployed in late-stage deals, the highest portion since 2010.

The focus on large, late-stage deals may be a harbinger of a rise in exit activity, with many portfolio companies possibly preparing to be acquired or go public.

Q1 is estimated to be the largest quarter on record for nontraditional investor deal activity. Capital from these investors has helped drive late-stage deals, leading to companies staying private longer.

read it now

Share:

A message from Finistere Ventures

Agrifood tech, defiant in face of pandemic, records breakout fundraising year

As COVID-19 reshaped the world, the agrifood tech investment community reacted quickly to the extreme uncertainty. The result was a record-shattering investment sum of $22.3 billion committed to the space in aggregate in 2020—momentum that has carried into this year. The resilience of investment syndicates was a key factor in this outcome.

With its 2020 Agrifood Tech Investment Review, Finistere Ventures, a leading global agrifood technology and life sciences venture capital investor, provides a comprehensive assessment of global financing activity over the past year and breaks down important trends by region, subsector and stage for both agtech and foodtech ecosystems. This report also includes updated agtech and foodtech market maps and a preliminary look at investment activity in early 2021.

Click here to read the 2020 investment review

Share:

From WFH to WF?: Data startups tackle office uncertainty

(Luis Alvarez/Getty Images)

As office workers tiptoe back to their desks, they're likely to encounter a new suite of software and sensors that will become a staple of the post-COVID workplace.

Employers are ripping up the real estate playbook, but they'll need buckets of data to manage a flexible office, investors say.

The transition has given lift to space reservation systems, sensors that track people anonymously and an array of health tools.

Real estate tech startups are up for the challenge, following record VC investment and a year of carefully calibrated preparations.

Recommended Reads

Despite pandemic-related bookshop closures, book sales in the UK soared during 2020. [The Guardian]

As of 2016, the typical millennial household had about 40% less than what previous generations had in wealth at the same age. New data shows that while some millennials have rebounded dramatically in recent years, many have fallen even further behind. [NPR]

Now that cryptocurrencies like Bitcoin have emerged as viable investments, they're almost impossible to ignore. [The New York Times]

Since yesterday, the PitchBook Platform added:

20

VC valuations

1916

People

470

Companies

23

Funds

See what our data software can do

Quick Takes


	The Daily Benchmark
	2011 Vintage Global PE Funds with more than $1B
	VC Deals
	Kid-focused fintech startup snags $260M in round led by a16z
	Current vaults to $2.2B valuation
	Clio hits unicorn status
	Sysdig secures $188M
	Automox lands $110M
	General Catalyst leads $100M Series C for Step
	Exits & IPOs
	Stripe set to snap up VC-backed TaxJar

The Daily Benchmark

2011 Vintage Global PE Funds with more than $1B

Median IRR

12.80%

Top Quartile IRR Hurdle Rate

20.00%

1.50x

Median TVPI

Select top performers

Waterland Private Equity Fund V CV

Thoma Bravo Fund X

Sycamore Partners I

*IRR: net of fees

34 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

PitchBook Webinar: US VC in Q1—Reaching for new heights

Join us on May 5 for a webinar detailing the strong results the US VC industry has seen in Q1. We'll be sitting down with industry experts from NVCA, Silicon Valley Bank and Secfi to dive into the findings from the Q1 2021 PitchBook-NVCA Venture Monitor, including the most recent data on fundraising, deals and exits.

Fundraising is on pace to reach new heights with one of the strongest fundraising quarters of all time, with just 14 mega-funds raising $19 billion.

Late-stage deal activity was bolstered by over 140 deals of $100 million or larger, resulting in record quarterly capital investment and $51.9 billion invested in late-stage startups.

Exits remained robust, with more companies making their public debuts through SPACs in Q1 than all of 2020.

Register today to secure your spot

Share:

VC Deals

Kid-focused fintech startup snags $260M in round led by a16z

Greenlight Financial Technology, which offers a parent-managed debit card for kids and other related financial products, has raised a $260 million Series D led by Andreessen Horowitz at a valuation of $2.3 billion. Other participants in the round included existing backers Canapi Ventures, Wells Fargo Strategic Ventures and Bond, as well as new investors Wellington Management, Owl Ventures and LionTree Partners. The Atlanta-based company closed its Series C around seven months ago at a valuation of $1.2 billion.

Additional Investors:

TTV Capital, Fin VC, Goodwater Capital

View round

View 9 competitors »

Current vaults to $2.2B valuation

Fintech startup Current has raised $220 million at a $2.2 billion valuation, nearly triple what it was worth in November, according to PitchBook data. Andreessen Horowitz led the funding round, with participation from investors including Tiger Global, Sapphire Ventures and Foundation Capital. New York-based Current operates a digital bank that focuses on underserved customers and has about 3 million members.

Additional Investors:

TQ Ventures, Avenir Growth Capital, Wellington Management, Expa

View round

View 10 competitors »

Clio hits unicorn status

Legal technology developer Clio has been valued at $1.6 billion after raising $110 million. T. Rowe Price led the Series E round, with OMERS Growth Equity also participating. The Canadian company makes cloud-based software for law firms that's used in applications like billing and client relations.

View round

View 4 competitors »

Sysdig secures $188M

Sysdig, a security startup for DevOps, has raised a $188 million Series F co-led by Third Point Ventures and Premji Invest, with participation from investors including Accel, DFJ Growth and Goldman Sachs. The round brings the company's valuation to $1.19 billion and its total funding to $394 million.

Additional Investors:

Bain Capital Ventures, Insight Partners, Next47

View round

View 144 competitors »

Automox lands $110M

Automox has raised a $110 million Series C led by Insight Partners, with participation from Blackstone, Koch Disruptive Technologies and TechOperators. The company offers a cloud-based IT operations platform. Colorado-based Automox raised $30 million at a $110 million valuation in January 2020, according to PitchBook data.

View round

View 64 competitors »

General Catalyst leads $100M Series C for Step

Step, the developer of a mobile banking platform designed for teens and families, has raised $100 million in a round led by General Catalyst, with support from several angel investors including Stephen Curry and Jared Leto. Based in Palo Alto, Step raised $50 million at a $290 million valuation in December, according to PitchBook data. The startup provides Visa cards and bank accounts that help young people build their credit.

Additional Investors:

WndrCo, Coatue Management, Dreamers VC, Franklin Templeton, Stripe, The Chainsmokers

View round

View 23 competitors »

Exits & IPOs

Stripe set to snap up VC-backed TaxJar

Fintech powerhouse Stripe has agreed to acquire TaxJar, a maker of sales tax compliance software for startups, for an undisclosed sum. Boston-based TaxJar was valued at $179 million in 2019, according to PitchBook data. It has received prior funding from Insight Venture Partners, Rincon Venture Partners and Daher Capital. Stripe, meanwhile, is backed by investors like Sequoia, Baillie Gifford and Allianz X, and reached a valuation of $95 billion in March.

View details

View 13 competitors »

Chart of the Day

"Also in Q1, late-stage deal value reached €13.0 billion, which equates to 74.0% of the quarter's overall deal value. Initiating a trend that will likely continue throughout 2021, enormous late-stage rounds closed with regularity in Q1 despite lockdowns and rising unemployment."

Source: PitchBook's Q1 2021 European Venture Report