16 March 2020 – Insightec Targets $150m Series F

The Big Ones

Insightec is targeting up to $150m in a series F round valuing it at $1.3bn post-money, and has already received a $100m commitment from Koch Disruptive Technologies to lead the round. The company is developing a system that will use ultrasound to conduct brain surgery without making an incision, and KDT also led its last round, a $150m series E in 2017.

Investment firm LSP has raised $600m for its LSP 6 fund, which it claims is the largest life sciences venture fund in Europe’s history. Limited partners for the fund, which significantly surpassed its $450m target, include pharmaceutical firms Bristol Myers Squibb and Otsuka Pharmaceutical. Netherlands-based LSP now has a total of $1.1bn at its disposal across three funds.

WeDoctor, the operator of a medical appointment booking platform, is reportedly interviewing investment banks for roles in a Hong Kong initial public offering potentially sized at up to $1bn. The company’s investors include Tencent, Fosun, Shandong Tyan Home, NWS Holdings and AIA, the latter two having co-led its last round in mid-2018, when it raised $500m at a $5.5bn valuation. The IPO is reportedly expected to value it at up to $10bn.

And in crossover news, Passage Bio, a US-based genetic medicines developer commercialising University of Pennsylvania research, has increased its initial public offering to more than $248m after underwriters exercised their over-allotment option in full. Underwriters purchased 1.8 million additional shares at the initial public offering price of $18, thereby injecting $32.4m into the company.

Deals

Kymera Therapeutics has closed a $102m series C round that will fund the progress of its immunotherapy pipeline, with cancer, autoinflammatory and autoimmune diseases in its eyeline. Although none of them were named as participants in the round, Kymera has a raft of earlier investors from the pharmaceutical industry including MRL Ventures, Sanofi Ventures, Lilly Ventures, Amgen Ventures and Vertex Pharmaceuticals.

Elsewhere in China but in a completely different sector entirely, agricultural product distributor Wangjiahuan has closed an $87m series B round led by local services portal Meituan Dianping. The round also featured GLP’s $1.6bn Hidden Hill fund, which had supplied $58.5m in series A funding for Wangjiahuan roughly 18 months ago.

The hospitality sector looks like it’s facing an uncertain time right now, but hospitality management software provider Cloudbeds has raised $82m in funding from participants including human resources firm Recruit. The round was led by Viking Global Investors and it followed a reported $20m in earlier funding, with existing investors PeakSpan Capital and Cultivation Capital returning for the latest round.

Bristol-Meyers Squibb has contributed to a series B round for Silverback Therapeutics that has closed at $78.5m. The biologic drug developer had previously raised $47.5m in a Celgene-backed series A round, and the latest cash will be used to progress its lead antibody into clinical trials in cancer.

ShopBack, the operator of an online consumer loyalty and rewards platform, has boosted a funding round that already included Rakuten Capital to $75m. Temasek led the full round, which the company said increased its overall funding to $113m. EV Growth, whose co-founders include Yahoo Japan and Sinar Mas, also took part, ShopBack’s earlier backers including InTouch, SoftBank Ventures Asia and Singtel Innov8.

Health benefits provider Lyra Health has also raised $75m, in a series C round that included Providence Health and Services ‘ corporate VC unit, Providence Ventures, that lifted its overall funding to at least $158m. The round was led by venture capital firm IVP and Castlight Health is among the company’s earlier investors.

Elsewhere in life sciences, Harbour BioMed has closed a $75m series B-plus round that included SK Holdings, Legend Capital and Zhejiang University Future Capital. Harbour is working on antibody-based therapies for cancer and inflammatory diseases but has now added a Covid-19 candidate to its pipeline. If it hits with that, expect its valuation to skyrocket. It traces its roots back to the Erasmus MC hospital.

Pager, the developer of a medical communication app, has secured $33m in equity and debt financing from investors including health insurance provider Horizon Blue Cross Blue Shield of New Jersey. The company’s earlier backers include Horizon Healthcare Services and Grupo Sura, and the latest funding will support geographical growth and product development.

Funds

Gas utility Enagás has also been busy fundraising and has put together a $170m fund in partnership with investment bank Alantra that will provide capital for renewable energy technology developers. The corporate is providing approximately $22.7m as a first commitment to Clima Energy Transition Fund and will also offer its expertise to portfolio companies.

Corporate venturing vehicle Strive rebranded from Gree Ventures last year and put down a target of more than $130m for its third fund – essentially double the amount it raised for the predecessor. In the end, Strive has closed the fund at just over $100m. It said the main priority was to reach $100m and that its central goal is to concentrate on its portfolio companies rather than fundraising.

Exits

Small molecule drug developer Zentalis is one of several life sciences companies to have filed for IPOs in recent days (see Ayala below), and it is targeting $100m in a Nasdaq offering. The decision comes after $162m in funding and will give Pharmaron the chance to exit. Let’s just hope the recent downturn in the public markets proves to be temporary rather than something longer lasting.

It maybe be hard going in the public markets right now but Imara has nevertheless gone public, raising $75.2m in an IPO that involved it floating at the bottom of its range, despite marginally increasing the number of shares in the offering. Imara is developing therapies to combat blood disorders and its shareholders include Lundbeckfond Invest and Pfizer Ventures, which hold a combined 15% of the company post-IPO.


“Funky Chunk” Kevin MacLeod (incompetech.com)
Licensed under Creative Commons: By Attribution 3.0

14 May 2018 – China About to Finalise $47bn Semiconductor and Chip Investment Fund

Deals

Online medical booking and healthcare services portal WeDoctor has raised $500m at a $5.5bn valuation, securing the cash in a round co-led by insurer AIA, which is now the company’s life and health insurance partner, and conglomerate NWS Holdings.

Commission-free online trading platform Robinhood is on a tear, having raised $363m in a series D round that more than quadrupled its valuation to $5.6bn in just over a year, during which it added options and cryptocurrency trading features.

Hybrid cloud software provider Mesosphere has raised $125m in a series D round co-led by Koch Industries subsidiary Koch Disruptive Technologies that also featured Hewlett Packard Enterprise and the Qatar Investment Authority.

Moderna Therapeutics first formed a strategic collaboration agreement with Merck & Co two years ago, and now the RNA therapeutics developer has received $125m from Merck as part of a deal to enhance that agreement.

Intel Capital’s annual Global Summit has revealed its latest batch of portfolio companies, which received a total of $72m from the corporate, which was spread across 12 companies.

On GUV, Escient Pharmaceuticals, a US-based biotechnology spinout from Johns Hopkins University, launched last week with a $40m series A round backed by spinout-focused investment firm Osage University Partners.

Funds

Logistics firm GLP has set up a $1.6bn investment fund that will target technology-focused companies in the logistics sector.

China is about to finalise a $47bn investment fund focusing on semiconductor research and chip development.

US-based life sciences investment firm Foresite Capital has closed a $668m fund that included several unnamed university endowments among the limited partners.

On GUV, Yale University received a $15m grant from philanthropic organisation Blavatnik Family Foundation yesterday to expand the Blavatnik Fund for Innovation to $25m.

Exits

Walmart has confirmed its $16bn purchase of a 77% stake in India-based e-commerce company Flipkart, in what is the biggest M&A exit of a VC-backed company since Facebook’s $19bn purchase of WhatsApp in 2014.

Recruit has agreed to acquire employment listings and employee review platform Glassdoor for $1.2bn in cash, enabling Alphabet’s CapitalG to exit.

Huya, livestreaming platform YY’s game-themed spinoff, secured $180m on Friday in a US IPO in which it floated at the top of its range.

Meili, the Chinese fashion e-commerce platform formed by the merger of Meilishuo and Mogujie, has hired underwriters for an initial public offering in the US that is expected to raise about $500m.

Indian renewable power producer ReNew Power, which counts Japan-based utilities Tokyo Electric and Chubu Electric as well as a subsidiary of sovereign wealth fund Abu Dhabi Investment Authority as backers, has filed for an IPO in its home country that it expects will raise up to $386m.

Mobile POS technology producer iZettle announced plans to go public in its home country of Sweden, in an IPO slated to raise approximately $226m.

On GUV, Benevir Biopharm, a US-based immunotherapy developer based on research at New York University (NYU), is set to be acquired by biotechnology firm Janssen Biotech for up to $1.04bn.

Autolus, a UK-based cancer-focused biopharmaceutical spinout from University College London (UCL), filed for a $100m initial public offering on Nasdaq.

And one exit that has collapsed is StretchSense, a New Zealand-based wearable sensor manufacturer spun out from University of Auckland, which has had to let go 140 staff after e-commerce firm StartToday terminated an acquisition deal.


“Funky Chunk” Kevin MacLeod (incompetech.com)
Licensed under Creative Commons: By Attribution 3.0