Illustration: Sarah Grillo/Axios
Bernie Sanders still may eke out a win in Iowa, and is the consensus front-runner in New Hampshire. But most venture capitalists investing in America's health care industry — the primary target of Bernie's ire — have shoved their heads so deep in the sand that they've found water.
Why it matters: At some point, it could become a failure of fiduciary duty.
Health care accounts for over 20% of all U.S. venture activity.
Few health care VCs I speak with are working on a Plan B in the event of their risk/reward models being made obsolete, nor are they hearing such concerns at the portfolio company level. Three main reasons:
Health care VCs also argue that industry concerns about a President Sanders will first be reflected in public market valuations, with private market valuations to follow. And one mentioned that there could be fewer deals in areas like ultra-rare disease drugs, which come with ultra-high prices, because of fears that Sanders could call them out by name.
Bottom line: For now, health care venture's strategy is see no Bernie, hear no Bernie. We'll see how long that's viable.
Illustration: Aïda Amer/Axios
PT Softex, an Indonesian sanitary product maker backed by CVC Capital Partners, may postpone its local IPO because of coronavirus concerns, per Bloomberg. This comes just weeks after Atotech, a German chemicals group owned by The Carlyle Group, delayed its U.S. IPO for similar reasons.
🚑 Alto, a San Francisco-based digital pharmacy, raised $250 million in Series D funding. SoftBank Vision Fund 2 led, and was joined by return backers GreenOaks Capital, Jackson Square Ventures, Olive Tree Capital, and Zola Global. http://axios.link/n680
🚑 Outset Medical, a San Jose, Calif.-based developer of an all-in-one dialysis device, raised $125 million in Series E funding. D1 Capital Partners led, and was joined by Fidelity, Partner Fund Management, T. Rowe. Price, and Perceptive Advisors. http://axios.link/Ailb
🚑 Verana Health, a San Francisco-based clinical database, raised $100 million in new funding. GV led, and was joined by Bain Capital Ventures, Casdin Capital, and Define Ventures. Verana also acquired most assets of Knoxville-based data architecture company PYA Analytics. www.veranahealth.com
• Deliverr, a San Francisco-based delivery fulfilment startup, raised $40 million in Series C funding. Activant Capital led, and was joined by 8VC, GLP, and Flexport CEO Ryan Peterson. http://axios.link/XCon
• The Zebra, an Austin, Texas-based auto insurance marketplace, raised $38.5 million in Series C funding. Accel led, and was joined by Floodgate, Weatherford Capital, and return backers Ballast Point Ventures and Silverton Partners. http://axios.link/A6Dc
• MayaData, a Palo Alto-based container attached storage provider for Kubernetes, raised $26 million from AME Cloud Ventures, DataCore Software, and Insight Partners. http://axios.link/lsAg
• Homie, a Salt Lake City-based real estate startup for first-time homebuyers, raised $23 million in Series B funding from undisclosed backers. http://axios.link/q2s7
• FloLive, a London-based provider of IoT connectivity management solutions, raised $21.5 million. 83North led, and was joined by Dell Technologies Capital, Saban Ventures, and Qualcomm Ventures. http://axios.link/5Uyn
🚑 MaaT Pharma, a French biotech startup focused on “restoring patient-microbiome symbiosis,” raised €18 million in Series B funding from SymBiosis, Seventure Partners, Crédit Mutuel Innovation, and Biocodex. www.maatpharma.com
🚑 Naari Pharma, an Indian women’s health startup focused on hormones, raised around $17.5 million from Ascent Capital. www.naari.co
🚑 Ambyint, a developer of well production and artificial lift optimization software, raised $15 million in Series B funding. Cottonwood Venture Partners led, and was joined by Mercury Fund. http://axios.link/szhg
• ClearMetal, a San Francisco-based continuous delivery experience platform, raised $15 million in new funding led by Eclipse Ventures. http://axios.link/hQLL
• Global Savings Group, a German provider of commerce content solutions, raised $13 million from return backers Rocket Internet, Holtzbrinck Ventures, DTCP, and RTP Global. http://axios.link/VvQ3
• Suzy, a New York-based consumer insights platform, raised $12 million in Series C funding. Bertelsmann Digital Media Investments led, and was joined by Foundry Group, Triangle Peak Partners, and return backers 35 Ventures and Tribeca Venture Partners. http://axios.link/bN6h
• Stori, a Mexico-based digital bank, raised $10 million in Series A2 funding. Bertelsmann Investments and Source Code Capital co-led, and were joined by return backer Vision Plus Capital. http://axios.link/pxzq
• Kaskada, a Seattle-based startup focused on automating feature engineering, raised $8 million in Series A funding from Voyager Capital, NextGen Venture Partners, Founders’ Co-op, and Walnut Street Capital Fund. http://axios.link/iPq1
• Kasisto, a New York-based digital experience platform for financial services, raised $7 million from Napier Park Financial Partners. http://axios.link/TNNH
• Casted, an Indianapolis-based podcasting platform for B2B brands, raised $2.5 million in seed funding from High Alpha Capital and Elevate Ventures. www.casted.us
• Retina, a Los Angeles-based provider of customer analytics, raised $2.5 million led by existing backer Crosscut Ventures. http://axios.link/YszH
• Industrial Opportunity Partners acquired Competition Cams, a Memphis-based maker camshaft and valvetrain-related components for the automotive aftermarket. www.compperformancegroup.com
🚑 Kriya Capital acquired Medstat Accounts Receivables Management, a Mesa, Ariz.-based provider of revenue cycle services for medical professionals. www.medstataz.com
• Pelican Products, a Torrance, Calif.-based portfolio company of Behrman Capital, acquired NanoCool, an Albuquerque-based manufacturer of temperature-controlled packaging solutions. www.pelican.com
🚑 Acelity, a San Antonio-based wound care products company, formally withdrew its IPO registration. Last year it was acquired for $6.7 billion by 3M (NYSE: MMM).
👻 Casper Sleep, a New York-based mattress maker, cut its IPO price range from $17-$19 to $12-$13. It now would have an initial market cap just south of $500 million, were it to price in the middle of its range. http://axios.link/FF6l
• Central Group, Thailand’s largest retailer, raised around $2.6 billion in an IPO that priced near the top of its indicative range. http://axios.link/SvC2
• InterPrivate Acquisition, a blank-check acquisition platform led by the founder and CEO of private investment firm InterPrivate, raised $210 million in its IPO. It will trade on the NYSE (IPV.U), while EarlyBirdCapital served as lead manager. http://axios.link/IezM
• Apollo Global Management sold a minority stake in ecoATM, a San Diego-based operator of self-serve kiosks for buying back used electronics, to Cowen’s sustainable investment unit for $200 million. http://axios.link/tRSu
• Warburg Pincus is considering a sale for Charlotte-based HVAC company Service Logic, which could fetch more than $1.5 billion, per Bloomberg. http://axios.link/BqxU
• Aon (LSE: AON) acquired Cytelligence, a Canadian cybersecurity advisory. http://axios.link/Neny
🚑 Bergman Clinics, a Dutch chain of medical clinics, is seeking a buyer, per Bloomberg. The deal could entice private equity, and be valued at upwards of €1 billion. http://axios.link/cbLt
• Intercontinental Exchange (NYSE: ICE) approached eBay (Nasdaq: EBAY) about a potential takeover, per Reuters. Talks do not appear to be active. http://axios.link/IkKB
• L’Oreal (Paris: OREP) is in exclusive talks to sell its Roger & Gallet perfume and soap brand to French investment group Impala. http://axios.link/KdCf
• Qatar Airways said it’s talks to buy a 49% stake in African carrier RwandAir, and may double its 10% stake in LATAM Airlines Group. http://axios.link/lIB5
⛽ Siemens (DE: SIEG) will pay €1.1 billion for Iberdrola’s (Milan: IBE) 8.1% stake in the Siemens Gamesa renewable energy joint venture. http://axios.link/zwhj
🎧 Spotify (NYSE: SPOT) agreed to buy The Ringer, a sports and culture website and podcast network founded by Bill Simmons. http://axios.link/O7Hz
• Textron (NYSE: TXT), the maker of Cessna jets, is in talks to buy Bombardier’s (TSX: BBD) business jet business, per the WSJ. http://axios.link/S612
• Ecosystem Investment Partners, a Baltimore-based private equity firm focused on “large-scale ecological restoration,” raised $455 million for its fourth fund. Monument Group served as placement agent. www.ecosystempartners.com
• Fortissimo Capital, an Israeli VC and private equity firm, raised $650 million for its fifth fund. http://axios.link/7xEe
⛽ Generate Capital, a San Francisco-based private equity firm focused on sustainable energy projects and tech, raised more than $1 billion for its latest fund. http://axios.link/0dc3
• TLcom, an Africa-focused VC firm, raised $71 million for its latest fund. http://axios.link/5qeq
• Michael Ronen is stepping down as U.S.-based managing partner at SoftBank Vision Fund, which he joined in 2017 from Goldman Sachs, per the FT. http://axios.link/LtDV
• Rob Salvagno joined KKR as co-head of its tech growth equity business. He previously led Cisco Investments. http://axios.link/wk8n
• Jim Lott joined middle-market private equity firm Peak Rock Capital as a managing director focused on portfolio consulting. He previously was chief information officer at GTCR. www.peakrockcapital.com
🚑 Tanya Hayes joined Frazier Healthcare Partners as an HR-focused executive partner. She previously led her own talent consulting firm and served as interim chief people officer for Frazier portfolio company Matrix Medical. www.frazierhealthcare.com
• Rohan Narayan joined middle-market private equity firm One Rock Capital Partners as a partner. He previously was with Lindsay Goldberg. www.onerockcapital.com
• Christopher Parisi (ex-FPG Advisory) and Michael Gordon (ex-KPMG) joined the M&A group of investment bank Carl Marks as a managing director and VP, respectively. www.carlmarksadvisors.com
• Pritzker Private Capital hired Eric Kieras (ex-JZ Partners) as a principal on the services investing team, Megan Slentz (ex-Waud Capital) as head of partner relations and marketing, and Carter Cast (ex-CEO of Walmart.com) as a senior advisor. It also promoted Michael Nelson to head of manufactured products and services and David Gau as head of operations. www.ppcpartners.com
• Yellow Wood Partners promoted CFO Tracy Pizzi to partner. www.yellowwoodpartners.com
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