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The Daily Pitch: VC

December 10, 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 latest analyst note, which examines whether medtech startups are slowly being written out of the life sciences playbook.

Three back-to-back mega-deals show that the European fintech frenzy isn't slowing down.

A look at how VC-backed IPOs pace against the broader market.

Today's Top Stories

Is medtech innovation dead?

(sesame/Getty Images)

The biomedical revolution of the 21st century has propelled a record-shattering $44 billion in VC funding for US life sciences companies during 2021. Our latest analyst note examines the capital investment differences between medtech and biotech, delving into why biotech has overshadowed medtech in recent years, and what the future of medtech holds. Among the other takeaways:

While PitchBook defines the life sciences industry as comprising two subsectors—biotech and medtech—they aren't equally weighted from an investment perspective.

Medtech companies have been receiving a shrinking proportion of life sciences capital in recent years as biotech companies continue to take the lion's share.

Is investing in medtech startups slowly being written out of the life sciences playbook, or should investors take a second look at a possible resurgence in medtech innovation?

read it now

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European fintech boosted with three new mega-deals

(Image courtesy of Monzo)

As the year draws to an end, the fintech investment frenzy in Europe shows no sign of slowing. This week, a slew of mega-deals has boosted the valuations of challenger bank Monzo, cloud banking platform Mambu and expense management software provider Pleo to over $4 billion each.

Here's a look at rocketing VC investment in the sector and the largest European fintech deals of 2021.

Recommended Reads

Financial influencers are attracting the attention of startups and investment firms eager to reach new customers. [Bloomberg]

In the age of data science, here's how JP Morgan is putting it into practice. [Institutional Investor]

Chess engines were supposed to make chess more predictable. Instead, they made one player more creative. [The Wall Street Journal]

Since yesterday, the PitchBook Platform added:

16

VC valuations

1823

People

446

Companies

31

Funds

See what our data software can do

Quick Takes


	The Daily Benchmark
	2019 Vintage Global PE Funds with more than $1B
	Partner Perspectives
	How the transition to renewables is transforming dealmaking across the energy spectrum
	VC Deals
	CloudBees buzzes away with $245M
	Robotic Research locks down $228M
	Tradeshift banks $200M+ for supply chain tech
	Rho ropes in $75M Series B
	Cancer therapeutics startup launches with $30M
	Petra raises $30M for tunneling technology
	Canapi leads $27.5M round for Posh Technologies
	Fundraising
	Databricks reveals new venture fund

The Daily Benchmark

2019 Vintage Global PE Funds with more than $1B

Median IRR

14.22%

Top Quartile IRR

29.92%

1.14x

Median TVPI

Select top performers

Apax X

TPG Healthcare Partners

Insight Venture Partners XI

*IRR: net of fees

95 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

Partner Perspectives

How the transition to renewables is transforming dealmaking across the energy spectrum

As the energy industry transitions to renewables, private investment trends remain dynamic. Billions of VC dollars are flowing into cleantech, while PE firms consolidate traditional producers and expand holdings of wind and solar. Vinson & Elkins' new report reviews the full spectrum of private investment in depth, with key findings including:

After a sluggish 2020, dealmaking is ramping back up, with record buyout multiples raising the stakes for PE fund managers.
Alternative and nontraditional energy companies account for growing proportions of energy M&A, as exploration and production compress somewhat.
Venture funding is diversifying across a wider array of cleantech than ever before, from greener building materials to commercial-scale, next-generation batteries.

Read the report

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VC Deals

CloudBees buzzes away with $245M

CloudBees, the provider of a software delivery platform for enterprises, has wrapped up its Series F with $150 million in funding, giving the San Jose-based company a pre-money valuation of $1 billion. The startup also raised a $95 million debt facility to supports its growth. Founded in 2010, CloudBees was valued at $432 million in 2019, according to PitchBook data.

Investors:

Goldman Sachs Asset Management Private Credit, Bridge Point Capital, Delta-v Capital, Golub Capital BDC, HSBC Ventures, Morgan Stanley

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Robotic Research locks down $228M

Robotic Research, a provider of autonomous mobility and robotics solutions for the defense sector, has collected $228 million in new funding, representing the first time the Maryland-based company has raised outside capital. The new financing will help support Robotic Research's commercial division, which is developing autonomous driving tech for commercial trucks, buses, and drayage and logistics vehicles. SoftBank's Vision Fund 2, Enlightenment Capital and others supported the round.

Additional Investors:

Crescent Cove Advisors, Henry Crown and Company, Luminar

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Tradeshift banks $200M+ for supply chain tech

Tradeshift, the operator of a B2B commerce platform, has raised over $200 million in funding and debt from a mix of new and existing backers, including Koch Industries, IDC Ventures and LUN Partners. The San Francisco-based startup provides e-invoicing and accounts payable automation for buyers and suppliers in more than 190 countries.

Additional Investors:

Fuel Capital, The Private Shares Fund

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View 76 competitors »

Rho ropes in $75M Series B

Rho has raised $75 million in Series B funding led by Dragoneer Investment Group, with support from DFJ Growth, M13, Inspired Capital and Torch Capital. Founded in 2018, Rho offers an automated corporate spend and cash management platform. The startup was valued at $130 million in June, according to PitchBook data.

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Cancer therapeutics startup launches with $30M

K36 Therapeutics has raised a $30 million Series A led by F-Prime Capital and Atlas Venture, with participation from Eight Roads Ventures. Based in the Boston area, the biotech company is developing breakthrough therapies for those with cancer. K36 will use the new funds to advance its lead drug candidate, which is designed to treat myeloma.

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Petra raises $30M for tunneling technology

Robotics startup Petra has raised a $30 million Series A led by DCVC. The company is also backed by ACME Capital, Congruent Ventures, 8VC, Real Ventures, Elementum Ventures and Mac Venture Capital. Petra is the creator of a hard rock-boring robot that buries utility tunnels in disaster-prone environments.

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Canapi leads $27.5M round for Posh Technologies

Posh Technologies, the creator of a conversational AI platform for financial services companies, has raised a $27.5 million Series A led by Canapi Ventures, with support from new backers Curql Collective, Human Capital, CMFG Ventures, Jam Fintop and Piedmont Capital. Based in Boston, Posh has partnered with over 40 financial institutions to deploy web-based and mobile-based agents as well as voice assistants.

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Fundraising

Databricks reveals new venture fund

Databricks has launched Databricks Ventures, an investment vehicle that will target companies using innovation and tech to capture the power of data and AI. The effort's first vehicle, Lakehouse Fund, will focus on early- and growth-stage companies using Databricks' Lakehouse ecosystem. Portfolio companies will also be eligible to receive product roadmap access, tech integrations and go-to-market support. Databricks' platform is used by more than 5,000 companies to unify data, analytics and AI.

View details

View 2 investments »