PitchBook News - Healthtech insurers drive big exits

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The Daily Pitch: VC

August 12, 2021

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

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

Our analysts take the pulse of VC activity and opportunities in the enterprise healthtech market.

A look at 2021's top 10 mega-funds, part of a trend that's been gaining traction for several reasons.

Today's Top Stories

Healthtech insurers keep the big exits coming

The healthcare industry is increasingly turning to technology as a lifeline to improve the quality of care while lowering costs. Venture capital investors have seen that value proposition prove out in the insurance space with a string of headline-making IPOs this year.

Our latest installment of Emerging Tech Research breaks down the sector's vital statistics and areas of opportunity. Key takeaways include:

The VC-backed enterprise healthtech segment added more than $15 billion to its banner year for exit value in the second quarter of 2021. Bright Health was the fourth health insurer to go public this year, raising a record-setting $924.3 million for the category in its IPO.

Overall VC investment in the vertical declined from the prior quarter to $3.4 billion across 77 deals. Yet funding levels continue to hold well above prior years in a sign of industry maturity.

Insurtech is a booming corner of the venture market, and health insurance startups have grabbed the bulk of that funding. They have proved disruptive due in part to clever business models and tech that takes advantage of increasingly accessible healthcare data.

read the preview

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Private equity's mega-funds are making big moves in 2021

(KTSDesign/Getty Images)

It appears that mega-funds are the hot private equity investing topic of 2021.

This year is looking to be a banner one for private equity's mega-funds, with Hellman & Friedman closing its 10th namesake vehicle at $24.4 billion and The Carlyle Group reportedly eyeing $27 billion for its next flagship fund—in what would be the largest private equity vehicle of all time.

In all, 12 buyout and growth mega-funds have already closed this year. A total of 18 mega-funds were closed in 2019, and 16 closed in 2020.

According to PitchBook data, at least seven of those 12 funds have raised over $10 billion each.

Recommended Reads

A look at why hedge funds could thrive over the next decade. [Institutional Investor]

PE firms are increasingly financing leveraged buyouts by borrowing money from each other or standalone direct lenders. For banks, this could mean a threat to one of the most profitable businesses on Wall Street. [Bloomberg]

A recent investigation into Tyson shows the meat processing company has generated dire consequences for its workers, farmers and the environment. [The Guardian]

Since yesterday, the PitchBook Platform added:

11

VC valuations

1455

People

375

Companies

27

Funds

See what our data software can do

Quick Takes


	The Daily Benchmark
	2017 Vintage North American PE Funds
	A message from SS&C Intralinks
	How industrials market trends have evolved throughout the COVID-19 pandemic
	VC Deals
	FalconX secures $210M
	Matrix leads $157M round for biotherapeutics startup
	Upgrade snags $3B+ valuation
	People.ai hits $1.1B valuation
	Mahana Therapeutics raises $61M Series B to help IBS patients
	AviaGames picks up $40M
	Exits & IPOs
	Nanox inks $100M+ deal for VC-backed Zebra Medical Vision

The Daily Benchmark

2017 Vintage North American PE Funds

Median IRR

13.40%

Top Quartile IRR Hurdle Rate

21.85%

1.21x

Median TVPI

Select top performers

Falfurrias Capital Partners Fund III

Veritas Capital Fund VI

Insight Venture Partners X

*IRR: net of fees

108 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

A message from SS&C Intralinks

How industrials market trends have evolved throughout the COVID-19 pandemic

Despite encouraging trends in public health and global economies, the effects of the COVID-19 pandemic are still rippling through multiple sectors, including industrials. SS&C Intralinks' latest market brief analyzes a variety of PitchBook datasets to identify key trends, including:

VC activity in industrials remains strong
The industrials M&A cycle looks primed to recover
Dealmakers are still willing to pay up for the right targets

Read the full report

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VC Deals

FalconX secures $210M

Crypto startup FalconX has raised $210 million at a $3.75 billion valuation, more than five times what it was reportedly worth earlier this year. The Series C was led by Altimeter Capital, Sapphire Ventures, B Capital Group and Tiger Global. Other backers including Mirae Asset and American Express Ventures also participated in the funding. San Mateo, Calif.-based FalconX operates a cryptocurrency trading, credit and clearing platform for institutional clients.

Existing Investors:

Accel, Accomplice VC, Coinbase Ventures, CMT Digital, Flybridge Capital Partners, Lightspeed, Avon Ventures

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Matrix leads $157M round for biotherapeutics startup

GentiBio has raised a $157 million Series A led by Matrix Capital Management. The Boston-based company is a developer of engineered regulatory T cells designed to treat patients who suffer from autoimmune, alloimmune, autoinflammatory and allergic diseases. GentiBio raised a $20 million seed funding a year ago.

Additional Investors:

Avidity Partners, Novartis Venture Fund, OrbiMed, RA Capital Management, Seattle Children's Hospital, T1D Fund

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Upgrade snags $3B+ valuation

Upgrade has raised a $105 million Series E led by Koch Disruptive Technologies, valuing the business at more than $3.3 billion. The San Francisco-based company offers consumers rewards-based checking accounts and credit via cards and personal loans. Upgrade raised a $45 million Series D in June 2020.

Additional Investors:

BlueRun Ventures, Ventura Capital

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View 41 competitors »

People.ai hits $1.1B valuation

People.ai, a startup making software to manage sales teams, has raised $100 million at a $1.1 billion valuation. Akkadian Ventures and Mubadala co-led the Series D, with participation from Iconiq Capital and Lightspeed. Bay Area-based People.ai was valued at $400 million in 2019.

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Mahana Therapeutics raises $61M Series B to help IBS patients

Mahana Therapeutics has raised $61 million in a round co-led by Jazz Venture Partners and Gurnet Point Capital. The San Francisco-based company is the developer of an online platform that provides cognitive behavioral therapy to patients suffering from irritable bowel syndrome and other chronic health conditions.

Additional Investors:

KKCG, Lux Capital Management, Main Street Advisors

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AviaGames picks up $40M

AviaGames has raised $40 million from investors including ACME Capital, Washington Harbour Partners and Powerhouse Capital. Founded in 2017, the Mountain View, Calif.-based company is the developer of a skill-based gaming platform that allows players to win cash prizes. Hany Nada, co-founder of ACME Capital, has joined the company's board. AviaGames was valued at $33 million in 2020, according to PitchBook data.

Additional Investors:

Galaxy Interactive, Makers Fund

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View similar company »

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As you work your way through the course modules, access the PitchBook Platform to see comprehensive private and public market data in action. With detailed data at your fingertips, explore PitchBook's tools for understanding valuations, such as M&A comps, venture valuation comps, public comps and fund data.

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Exits & IPOs

Nanox inks $100M+ deal for VC-backed Zebra Medical Vision

Nanox has agreed to acquire medical imaging and analytics platform Zebra Medical Vision. The US group will spend up to $200 million for the Israeli company, with $100 million to be paid up front and the potential for another $100 million to be paid out as specific milestones are met. Zebra-Med is backed by investors including Khosla Ventures, Dolby Ventures and OurCrowd. The company has raised $52 million in funding to date.

View details

View 44 competitors »

Chart of the Day

"Fundraising activity in the upper-middle-market (funds sized between €500.0 million and €1.0 billion) has had a spectacular H1 2021. The first half of the year saw 12 funds close, amassing €8.2 billion, which is just shy of 2020's annual fund count and capital raised total. LPs are attracted to the potential of outsized returns from Europe's middle-market funds due to the intense fragmentation and wide opportunity set within Europe's SMEs."

Source: PitchBook's Q2 2021 European PE Breakdown