Noom lands record VC digital health deal

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The Daily Pitch: VC

May 26, 2021

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Today's Top Stories

Weight-loss startup Noom gains $540M in VC's largest digital health deal

(wragg/Getty Images)

Noom, the creator of a weight-loss app that utilizes psychology and behavior modification concepts, has picked up a $540 million Series F led by Silver Lake, representing the largest ever VC deal in the global mobile and digital health space, according to PitchBook data. The financing values the company at $3.7 billion, Bloomberg reported.

Noom generated $400 million in revenue last year, a nearly 70% increase from $237 million in 2019, according to reports. This strong performance was likely bolstered by users' desire to lose weight gained amid the pandemic.

In the meantime, weight-loss incumbent Weight Watchers currently trades at a market capitalization of $2.6 billion and has held its revenue at roughly $1.4 billion over the last few years.

Other investors in Noom's funding round included Oak HC/FT, Temasek, Sequoia, Novo Holdings, RRE and Samsung Ventures. Noom raised a $58 million round in 2019.

Bloomberg reported last week that Noom has met with advisers to plan for an IPO later this year or in early 2022 that could value it at some $10 billion.

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UK to pump $235M+ into green tech amid growing VC investment

(sarayut Thaneerat/Getty Images)

In a bid to position the UK as a leader in green technologies, the government is planning to inject £166.5 million (around $235.4 million) into the sector at a time when VC investment in climate tech is reaching a new high.

The funds will go toward the development of technologies in areas such as carbon capture and greenhouse gas removal as the government looks to deliver a net-zero carbon economy by 2050.

Venture investors poured a record $480 million-plus into UK-based climate tech companies last year.

The UK's drive toward green technology coincides with efforts across Europe and the US to fund climate tech.

Recommended Reads

The Central California town of Corcoran has been slowly but steadily sinking. What's causing the altered landscape? [The New York Times]

Planting trees can help remove carbon dioxide from the atmosphere, but scientists are discovering that natural regeneration could be more effective. [BBC]

From tumbling revenue to a blockbuster IPO, Airbnb had a wild 2020. Now, it's getting ready to adapt to a new travel reality. [Fortune]

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Quick Takes


	The Daily Benchmark
	2010 Vintage Global Secondaries Funds
	VC Deals
	Bowery Farming blooms with $300M in new funding
	Forter lands $300M at $3B valuation
	India's FarEye raises $100M for logistics platform
	Life sciences software developer nabs $50M

The Daily Benchmark

2010 Vintage Global Secondaries Funds

Median IRR

14.77%

Top Quartile IRR Hurdle Rate

17.85%

1.48x

Median TVPI

Select top performers

StepStone Ohio Secondary Opportunities Fund

Landmark Real Estate Fund VI

AlpInvest Partners Fund IV - Secondary Investments

*IRR: net of fees

11 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Bowery Farming blooms with $300M in new funding

Indoor agriculture startup Bowery Farming has been valued at $2.3 billion after raising $300 million in a Series C round led by Fidelity Management and Research. GV, General Catalyst, GGV Capital, Temasek, Groupe Artémis, Amplo and Gaingels also participated. The New York-based vertical farming company provides produce to Albertsons, Walmart, Whole Foods and other grocers. Bowery Farming has now brought in more than $470 million in total funding.

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View 3 competitors »

Forter lands $300M at $3B valuation

Forter, the creator of a platform for ecommerce fraud prevention, has raised a $300 million Series F at a $3 billion valuation. The deal, which comes six months after the company closed on its $125 million Series E, was led by Tiger Global, with participation from investors including Third Point Ventures, Adage Capital Management, Bessemer Venture Partners and Sequoia. The company has benefitted in part from the industry trend toward digital transformation.

Additional Investors:

March Capital, NewView Capital, Salesforce Ventures, Scale Venture Partners

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View 34 competitors »

India's FarEye raises $100M for logistics platform

Logistics startup FarEye has raised $100 million in Series E funding led by TCV and Dragoneer Investment Group. Eight Roads Ventures, Fundamentum and Honeywell also participated. The Indian company's platform aims to help businesses reduce costs and improve their delivery operations and customer service. Founded in 2013, FarEye is used by companies like UPS, Dominos and Walmart.

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Life sciences software developer nabs $50M

Qualio, a provider of cloud-based quality management system software for life sciences organizations, has raised a $50 million Series B led by Tiger Global. Investors including Menlo Ventures, Operator Partners and Storm Ventures also joined the round, which brings the San Francisco-based company's total financing to over $63 million.

Additional Investors:

Frontline Ventures, MHS Capital, Sorenson Capital

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Chart of the Day

"Sponsor-to-sponsor exits also faltered in Q1, continuing a trend we saw in 2020. GPs continue to delay exiting pandemic-affected businesses to avoid selling at a discount to their pre-COVID-19 fundamentals, while buyside GPs are hunting for bargains. For GPs looking to exit larger businesses with positive secular trends, public markets—including SPACs—and corporate buyers were often willing to pay higher prices than other GPs under pressure to deliver returns in a high-multiple environment."

Source: PitchBook's Q1 2021 US PE Breakdown