VCs chase fresh medical tech

Kimmeridge bets big on natural gas; telehealth startups turn to teen mental health; UK economy stars in 1st regional snapshot

Read online | Don't want to receive these emails? Manage your subscription. Log in The Daily Pitch: VC, PE and M&A August 18, 2023 The Daily Pitch is powered by PitchBook's industry-defining research and best-in-class data In today's Daily Pitch, you'll find: VC investment in new technologies prevented medtech from flatlining in Q2 Telehealth startups see adolescent mental healthcare as a growing opportunity Kimmeridge, unfazed by apathy for oil-and-gas funds, tries out a bold integrated gas strategy The first of our quarterly Country Snapshots unpacks market trends in the UK   Today's Top Stories   Medtech regains some strength VC funding for medical tech skyrocketed to $19.7 billion in 2021 before plummeting, and funding this year could remain moderately below 2022's levels. According to our Q2 2023 Medtech Report, deal count and value in the sector have increased since the first quarter, with a larger array of medtech categories seeing $100 million-plus VC deals—including surgical robotics and neurostimulation. VCs are also intrigued by new technologies related to precision medicine, sleep disorder treatments and mixed-reality surgical navigation. And with improved hospital margins and robust patient interest in elective surgeries, the prognosis is good for investors to return to the space. read the preview   Share: After $1B fundraise, Kimmeridge deals test bold natural gas strategy (Houston Chronicle/Getty Images) In a tough fundraising environment for GPs targeting oil and gas, energy investor Kimmeridge raised $1 billion for its largest fund to date. It's deploying that capital mainly on a handful of big exploration and production bets. These recent investments follow a strategy of natural gas integration that few, if any, PE firms have attempted before. read more   Share:   A message from PitchBook   PitchBook's 2023 Media Kit released With uncertainty across the private and public markets likely to continue, strong and insightful thought leadership is critical to your clients and prospects. By partnering with PitchBook Media, you will have daily opportunities to reach 1.5M+ industry professionals in our newsletter, and you can broaden exposure of your brand through our core industry reports. We also help clients create custom research to share data-driven insights on the market. Our 2023 Media Kit contains all the details to help your firm position itself in front of a VC or PE audience. Click here to download it today or to speak to someone on the media team. Share:   Can telehealth startups fill the gap in adolescent mental healthcare? (Jenna Pluimer/PitchBook News) Telehealth VC investment is down over 80% from its peak of $2.2 billion globally in Q1 2021, but investors are eyeing adolescent mental healthcare as a growing opportunity to serve an unmet need. With studies and reports citing one in three young people struggling with mental illness and concerns over the loneliness epidemic, innovators are seeking ways to improve youth mental healthcare despite significant obstacles. read more   Share: Markets continue to struggle in challenging UK economy Our UK Market Snapshot is the first in a new quarterly series that details trends in regional public and private markets. Despite high inflation and interest rates, the UK economy avoided a recession in Q2 as GDP leveled out. PE fundraising was strong in the first half of the year, bolstered by mega-fund closes, and dealmaking increased from Q1 to Q2. VC deal activity was also up in Q2, and the UK government bolstered the sector with plans to direct £75 billion from pension funds to startups. Read up on other need-to-know statistics for stakeholders, from corporate and sovereign bond yields to the top investors in private markets. read it now   Share: New fund data shows performance picked up in Q1 Fund returns in the private markets can look less volatile than reality due to infrequent valuation updates within a portfolio. Our Private Capital Indexes, now with data as of Q1 2023, looks back and revises returns data in previous quarters to give a more accurate risk assessment. In Q1, positive performance was recorded across all seven monitored asset classes for the first time in four quarters. The average return across private equity, venture capital, real estate, real assets, private debt, funds-of-funds and secondaries funds was 1.3%. read it now   Share: Recommended Reads This tomato sauce is delicious. It's also worth billions of dollars. [The Wall Street Journal] Wall Street turns to AI to solve a WhatsApp compliance nightmare. [The Information] Peloton looks to jump-start growth by becoming a workplace perk. [Bloomberg]   Since yesterday, the PitchBook Platform added: 364 Deals 2132 People 575 Companies 14 Funds See what our data software can do   The Daily Benchmark: 2015 Vintage Global PE Funds with $250M-$500M Median IRR 13.41% Top Quartile IRR 21.14% 0.85x Median DPI Select top performers Sunstone Partners I Lead Edge Capital III Tritium I *IRR: net of fees 26 Funds in Benchmark » Check out the latest version of PitchBook Benchmarks   VC Deals   Pivotal Commware, a 5G infrastructure company, has raised a $102 million Series D led by Gates Frontier and Tracker Capital. Blockchain startup ZetaChain has raised $27 million from investors including Vy Capital, Blockchain.com and Human Capital. Cybersecurity startup ProjectDiscovery has raised a $25 million Series A led by CRV. Visana Health, a virtual women's health clinic, has raised $10.1 million in a seed round co-led by Flare Capital Partners and Frist Cressey Ventures. Procurement software company Mercanis has raised $10 million from investors including Signals Venture Capital, DI Technology and Speedinvest. Stockholm-based Apica has secured $10 million from Industrifonden, SEB Group and Oxx. The startup helps companies test applications using synthetic data. Fintech company Micronotes has raised an additional $2 million from BankTech Ventures for its Series C, bringing the round's total to $7.5 million.   PE Deals   Invenergy, CDPQ and Blackstone have acquired American Electric Power's unregulated renewables portfolio for $1.5 billion. Accel-KKR has invested €60 million in Ireland's Ocuco, a provider of eyecare software solutions. Motive Partners has agreed to invest up to $50 million in buy now, pay later specialist Splitit Payments, which will receive the first $25 million tranche after delisting from the Australian Security Exchange. TPG Rise Climate has agreed to buy a majority stake in A-Gas, a British developer of refrigerant gases, from owners including KKR, which will retain a minority stake. Several PE firms are among the potential suitors for the China poultry unit of US meat processor Tyson Foods, according to reports. The Abu Dhabi Investment Authority and CapitalG have agreed to invest in TeamSystem, which offers software to businesses and accountants in Italy and Spain.   Exit & IPOs   Antin Infrastructure Partners is looking to sell UK children's care home business Hesley Group, the Financial Times reported. In April, a government investigation found evidence of significant failings at the group's facilities. BGF has exited UK-based software development company Amdaris to US-listed Insight Enterprises.   Corporate M&A   UK-listed defense company BAE Systems has agreed to acquire US sector peer Ball Aerospace for $5.6 billion in cash.   Chart of the Day   Source: PitchBook's Q2 2023 Global M&A Report   Who's in the newsletter today? Investors Abu Dhabi Investment Authority Accel-KKR Antin Infrastructure Partners BAE Systems BGF BankTech Ventures Blackstone Blockchain.com CDPQ CRV CapitalG DI Technology Flare Capital Partners Frist Cressey Ventures Gates Frontier Human Capital Industrifonden Insight Enterprises Invenergy KKR Motive Partners Oxx SEB Group Signals Venture Capital Speedinvest TPG Rise Climate Tracker Capital Tyson Foods Vy Capital Companies A-Gas Amdaris American Electric Power Apica Ball Aerospace Hesley Group Mercanis Micronotes Ocuco Pivotal Commware ProjectDiscovery Splitit Payments TeamSystem Visana Health ZetaChain unregulated renewables portfolio     About PitchBook | Terms of use | Advertise with us | Contact Follow us: This email was sent to edwardlorilla1986.paxforex@blogger.com via the PitchBook Platform. Do you want to change your email address, get a different edition or unsubscribe? Manage your subscription here. © 2023 PitchBook. Win what's next. All rights reserved.