|
|
|
|
|
Industry Group Seeks Change to Democrats' Climate, Healthcare Bill
|
|
By Brian Gormley, WSJ Pro
|
|
|
|
|
Good day. Venture-capital investment in biotechnology has jumped in recent years, largely because VCs have backed treatments for diseases of aging. A group that lobbies for life sciences investors says a measure in the Democrats’ climate and healthcare package would curb the incentive to invest in some of these new medicines.
The Inflation Reduction Act would enable Medicare to negotiate the price of certain medicines that lack generic competition. The price of biologics, such as protein drugs, could be negotiated after 13 years on the market. Small-molecule medicines, taken as pills, could be negotiated after nine years.
Incubate, the life sciences industry group, wants senators to also give small-molecule drugs 13 years before their price can be negotiated.
On average, drugs have about 14 years of patent protection before facing generic competition, said Peter Kolchinsky, managing partner of life sciences investor RA Capital Management and a member of the Incubate advisory board.
Making pill prices subject to negotiation after nine years would reduce companies’ revenue from them, as well as the incentive to invest in small molecules to treat diseases of aging, he said.
The bill calls for minimum discounts for drugs subject to Medicare negotiation, based on how long they have been on the market. One way to pay for the change would be to increase the minimum discount for pills, said John Stanford, Incubate’s executive director. But Incubate would be open to other options lawmakers might propose, he said.
And now on to the news...
|
|
|
|
|
|
Ming Chen, founder and chief executive of KKday, a travel software startup that in July said it had raised additional funds as an extension of a Series C round earlier this year. PHOTO: KKDAY
|
|
|
|
Extended rounds. Rather than risk selling their shares at a lower price in new investing rounds, a growing number of startups are instead extending previous rounds–in some cases, extending rounds that appeared closed over a year ago, startup founders, investors and analysts say, WSJ Pro's Angus Loten reports.
-
Extended fundraising rounds can help safeguard a startup’s private-market valuation, since shares are typically priced at the same level as the initial round.
-
Known as a downround, investing rounds that value shares lower than in previous rounds can be a stain on a fast-growth startup.
-
KKday, a travel software startup, in July announced it had raised additional funds as an extension of a Series C round earlier this year. “Given high market volatility and investor sentiment, at the time when international borders remained closed, we did not want to dilute the company at a low valuation,” said Ming Chen, founder and chief executive of KKday.
|
|
|
|
|
Sinovation Ventures Completes $200 Million First Close of Its Latest Early-Stage Fund
|
|
Sinovation Ventures, a China-based early-stage investment fund led by former Google executive Kai-Fu Lee, has held a $200 million first close of its latest fund, according to a person familiar with the matter, The Wall Street Journal's Jing Yang reports. Sinovation’s fifth fund began raising capital in November 2021 with a $500 million goal, according to a regulatory filing with the Securities and Exchange Commission. The first close came as fundraising by China-focused general partners has dwindled to a trickle in light of heightened U.S.-China tensions and Beijing’s regulatory assault on internet-focused companies.
Correction
Databricks has a private-market value of $38 billion. An item in Friday's newsletter misstated the company's private-market value as $3.8 billion.
|
|
|
|
|
|
Since 2015, WSJ Pro has published its annual Women to Watch in Private Equity list to highlight the accomplishments of outstanding women in the field. We're accepting nominations for senior deal professionals, rising star deal professionals, and limited partner or fundraising professionals for this year's class. For more information and to submit your nominations by Aug. 15, click on this link. (Note: We are planning to recognize VC talent at a later date.)
WSJ Pro Special Report
The market for second-hand stakes in private market assets has grown exponentially in recent years as investors and fund managers alike utilize it to manage their portfolios more effectively. WSJ Pro has surveyed secondary buyers for more than a decade to capture the latest trends in secondary dealmaking and fundraising. This year’s survey reveals an industry facing a shifting landscape in the face of heightened market volatility and a potential economic slowdown. You can access the report based on this year’s survey here.
|
|
|
Funds
Top Tier Capital Partners closed on $925 million in new commitments, including $503.5 million for its Top Tier Venture Velocity Fund 4. The remainder of the money raised will go to a collection of separate accounts, one of which focuses on late-stage climate tech co-investments. The firm has offices in San Francisco, Boston and London.
Redpoint Ventures raised $650 million for its ninth early-stage fund. The firm recently participated in funding rounds for centralized metrics store Transform, open-source relational database provider Timescale, and Logixboard, a customer experience platform for forwarders and customs brokers. Redpoint Ventures closed its eighth early-stage fund with $500 million in 2020.
People
Kickstart, a seed-stage investor focused on Utah, Colorado and the Mountain West, appointed Kat Kennedy as general partner. She was most recently president and chief executive of Degreed.
Quona Capital said David Mathewson joined the firm as partner and chief operating officer. He was previously senior managing director at Small Enterprise Assistance Funds.
Exits
Nexar, a provider of vision-based software for safe driving, agreed to acquire Veniam, which offers intelligent networking for the internet of moving things. Terms weren’t disclosed. Tel Aviv-based Nexar is backed by investors including Corner Ventures, Samsung NEXT, La Maison Partners, Micron Ventures, Mosaic Ventures and Ibex Investors. Veniam, of San Francisco, counts True Ventures, Union Square Ventures, Orange Ventures, Verizon Ventures and Cisco Investments as investors.
Paystand, a blockchain-enabled business-to-business payments startup, purchased Yaydoo, a provider of financial automation technologies to Latin American countries, for an undisclosed amount. Scotts Valley, Calif.-based Paystand is backed by NewView Capital, SoftBank’s Opportunity Fund, King River Capital, Industrious Ventures, Transform Capital and others. Based in Mexico, Yaydoo counts Base10 Partners, Monashees, SoftBank Latin America Fund and Leap Global Partners as investors.
|
|
|
|
Axio, a New York-based cyber-management software provider, scored $23 million in Series B funding. Istari led the round, with Chief Technology Officer Mark Malecki and Managing Director of the Americas Curt Dalton joining Axio’s board. Distributed Ventures and IA Capital Group also participated in the investment.
LiveEO, a Berlin-based provider of infrastructure monitoring powered by satellite imagery, secured a €19 million investment consisting of €17 million in venture capital led by MMC Ventures, along with additional funding from the European Commission and Investitionsbank Berlin. New investors Segenia Capital and Hannover Digital Investments also participated in the new funding, along with previous backers Dieter von Holtzbrinck Ventures, Helen Ventures, Matterwave Ventures and motu ventures.
Ben, a London-based employee benefits platform, landed $16 million in Series A funding. Atomico led the round, which saw contributions from Cherry Ventures, DN Capital, Seedcamp and others. Sasha Vidiborskiy, partner at Atomico, will join the board.
Ghost Security Inc., an Austin, Texas-based application security startup, emerged from stealth with a $15 million investment from 468 Capital, DNX Ventures and Munich Re Ventures.
Atropos Health, a Palo Alto, Calif.-based physician consultation service, completed a $14 million Series A round. Lead investor Breyer Capital was joined by Emerson Collective and Boston Millennia Partners in the round. Emerson Collective's Matt Bettonville will join the company’s board. In addition to the funding, Atropos Health appointed company co-founder Brigham Hyde to the position of chief executive.
ZSuite Technologies, a Westwood, Mass.-based fintech startup, fetched $11 million in Series A funding. Lead investor S3 Ventures was joined by JAM Fintop in the round.
Lumu, a Miami-based cybersecurity startup, closed an $8 million investment. Led by Panoramic Ventures, the round included participation from KnowBe4 Ventures and others.
Datajoin, an Orem, Utah-based startup helping business-to-business marketers integrate their tech stack, was seeded with a $3.5 million investment led by Sepio Capital.
|
|
|
|
|
The video screen on the Nasdaq stock exchange in Times Square in New York, was decorated for the debut of the Coinbase listing on April 14, 2021. PHOTO: RICHARD B. LEVINE/ZUMA PRESS
|
|
|
|
-
Coinbase’s rapid rise left it exposed in crypto’s collapse
-
Amazon buying Roomba maker iRobot for $1.7 Billion
-
Oracle lays off hundreds of employees
-
Why crypto’s market cap never booms, or busts, as much as you think
|
|
|
|
|
|
|
|
|