Digitization boosts enterprise healthtech funding

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

PitchBook

Log in

The Daily Pitch: VC

February 10, 2022

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:

Enterprise healthtech startups raised more than $20 billion last year, as the industry matures and tech adoption in healthcare accelerates.

New rules proposed Wednesday by the SEC to tighten reporting and operating requirements for PE funds would alter practices that the industry has long relied on.

In the year since Robinhood garnered global attention for its role in the "meme stock" retail trading boom, investment apps around the world have been attracting funding.

Today's Top Stories

Enterprise healthtech matures as digitization drives VC funding

Enterprise healthtech startups raised $20.2 billion in funding during 2021, a 67% increase over the previous year, as the industry matures and late-stage deals proliferate.

The sector's market size is expected to reach $1.3 trillion by 2025, as digitization continues to expand across multiple facets of the healthcare industry, according to our 2021 Annual Enterprise Healthtech Report. Among the highlights:

Exit value skyrocketed to $36.2 billion in 2021—more than six times the total value in 2020—driven predominantly by strong IPO activity among insurtech companies.

Operations & care management startups continue to benefit from an increase in patient data and the adoption of value-based care, with the segment driving nearly a third of deal value last year.

Late-stage deal count and value both rose in 2021, with startups in segments like prescription tech taking advantage of shifting consumer behavior.

read the preview

Share:

As IPOs and SPACs freeze, secondary deals seen heating up

(DenEmmanuel/Getty Images)

Secondary deals have gained prominence in recent years as companies stay private for longer. In 2021 in particular, the appetite for secondary shares swelled as investors used any means available to access fast-growing late-stage startups.

After the recent stock market sell-off, pricing in the secondary market dropped as much as 40%, investors say.

High-profile hedge funds and other well-known crossover investors are now busy trying to scoop up discounted shares in their existing positions.

Even after this period of pricing volatility subsides, the secondary markets will likely continue to be even more important as early-stage investors feel pressure to provide liquidity to their LPs.

Recommended Reads

How high litigation costs have created some unlikely alliances between investment funds and marginalized communities seeking justice. [Bloomberg]

America's latest supply chain shortage is affecting disposable cups, a potential upset for a nation accustomed to caffeine on the go. [The Wall Street Journal]

The dominant trend in EV batteries is that bigger is better. But maybe with speedier charging, automakers could do more with less. [Wired]

Since yesterday, the PitchBook Platform added:

25

VC valuations

2246

People

521

Companies

25

Funds

See what our data software can do

Quick Takes


	The Daily Benchmark
	2019 Vintage Global VC Funds
	VC Deals
	Starburst scores $250M at $3.35B valuation
	Ventus Therapeutics brings in $140M
	Lightspeed leads $101M round for Seismic Therapeutic
	Leaf Logistics picks up $37M
	Speech therapy startup Expressable raises $15M
	Fundraising
	Omega wraps VC fund with $115M+

The Daily Benchmark

2019 Vintage Global VC Funds

Median IRR

41.73%

Top Quartile IRR

59.23%

1.35x

Median TVPI

Select top performers

Vectr Fintech Fund I

Northzone IX

USV 2019

*IRR: net of fees

69 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

Starburst scores $250M at $3.35B valuation

Data analytics startup Starburst has raised a $250 million round led by Alkeon Capital, with support from Altimeter, B Capital Group, Andreessen Horowitz and others. The Boston-based company is the developer of an engine that queries distributed data.

Additional Investors:

Coatue, Index Ventures, Salesforce Ventures

View round

View similar company »

Ventus Therapeutics brings in $140M

Ventus Therapeutics has raised a $140 million Series C co-led by RA Capital Management and SoftBank's Vision Fund 2. The biotech company is applying structural biology and computational tools to develop small-molecule therapeutics.

Select Additional Investors:

Andreessen Horowitz, BVF Partners, Casdin Capital, GV, Versant Ventures

View round

View 30 competitors »

Lightspeed leads $101M round for Seismic Therapeutic

Seismic Therapeutic has raised a $101 million Series A led by Lightspeed. Based in the Boston area, Seismic uses machine learning to accelerate immunology drug development. The company plans to use the funding to advance its first two lead drug programs.

Additional Investors:

Boxer Capital, GV, Polaris Partners, Samsara BioCapital, Timothy A. Springer

View round

View similar company »

Leaf Logistics picks up $37M

Leaf Logistics has raised a $37 million Series B led by Sozo Ventures, with support from investors including Madrona Venture Group. The New York-based company is the developer of a supply chain platform designed to connect shippers, carriers and logistics providers. Founded in 2017, Leaf Logistics was valued at $70 million in 2019, according to PitchBook data.

View round

View similar company »

Speech therapy startup Expressable raises $15M

Expressable has raised a $15 million Series A led by F-Prime Capital. The Austin-based company is the developer of a virtual speech therapy platform that offers personalized learning modules and home exercises to adults and children.

Additional Investors:

Amplifyher Ventures, Lerer Hippeau Ventures, NextView Ventures

View round

View similar company »

Fundraising

Omega wraps VC fund with $115M+

Omega Venture Partners has closed a new fund on more than $115 million in commitments, exceeding a $100 million target. Based in the Bay Area, the tech-focused firm targets software businesses using AI, machine learning, data and automation. Omega made 12 investments in new and existing portfolio companies in 2021.

View fund

View 39 investments »

Chart of the Day

"The recent returns of the VC strategy have helped drive the historic influx of capital to the late stage. The chase to achieve 'venture-like' returns continues to pull in new participants to the VC ecosystem."

Source: PitchBook's Q4 2021 PitchBook-NVCA Venture Monitor