untangling the web of drug manufacturing

and an effort to keep space tidy

View this email in your browser Today's summaries save you 24 minutes of news reading! Happy Friday, Below the Fold! While we're grateful to be out of the pandemic, staying well is by no means easier. COVID surges are still happening and children with RSV are flooding hospitals. In such a time, there's certainly attention on our distribution and supply of drugs, but the US is seeing much more than issues of spiking demand. Using AI to Unravel Pharmaceutical Supply Webs Wed Nov 30 The "Made In" label on products is helpful, but can be simplistic (see: conflict meat). In fact, modern supply chains are infamously complex at this point, but what are the implications when it comes to our drugs? Currently, the active ingredients (which is what makes a drug effective) may not have the same origin country as the finished drug. And not knowing how much of the crucial components of our pharmaceuticals are made in or out of the country means our supply isn't much in our own control. The FDA testified just how problematic this is to Congress in 2019, highlighting China's growth as a major concern. (China doubled the number of its active ingredient manufacturing facilities in under a decade.) For the US, this is a question of national security: Without intervention, the US could grow even more dependent on foreign manufacturers. The labor cost advantages and less stringent regulations (environmental and otherwise) makes it difficult for US production to compete. Moving manufacturing capabilities offshore could leave the US scrambling to produce its own drugs if supply chains are disrupted. Quality concerns have resulted in shortages already, hurting the health of Americans.Between 2013 and 2017, 62% of drug shortages were due to quality problems. But it's not just the quantifiable supply that worries the FDA and the Department of Homeland Security (DHS). The mystery of the supply chain leaves the US open to greater foreign influence. For instance, one Swiss painkiller maker had an Indonesian subsidiary whose board member had links to a number of Chinese shell companies. The DHS has tasked Quantifind, Inc. with investigating environmental, social and governance risks to supply-chains. Quantifind, using their AI, would go beyond geographical insights and extend, for example, to media reports that cover a supplier's potential involvement in human rights abuses. BELOW THE FOLD BYTES UN Votes To Prevent More Space Debris   While the US, China, Russia, and India have all conducted anti-satellite missile system (ASAT) tests, Russia's latest anti-satellite test produced a cloud of debris that threatened orbiting spacecraft and prompted the US to take action. First, the US enacted a self-imposed ban. Then, they encouraged other nations to follow suit, calling the tests one of the most pressing threats to the security and sustainability of space. A resolution was also introduced to the UN against ASAT tests, and was adopted this week with an overwhelming number of countries in favor. Notably, Russia and China voted against (both are leading producers of space debris along with the US). >> Read More Faux Nutrition in Faux Meats   While it's important to reduce our meat consumption and thus carbon footprint, the benefit of going plant-based is often centered on health claims. Those claims are only mostly true. Swedish researchers found that the "texturized" plant proteins used in manufactured meat substitutes contained high levels of phytates, which are naturally found in beans and cereals. These phytates block absorption of key minerals (especially iron and zinc) so marketing claims of high nutrition are dubious since the nutrition isn't absorbed by the body. Not all substitutes suffer the phytate issue. Tempeh, for instance, has microorganisms from fermentation to break down phytates. >> Read More 🎬 Action of the Week   Curious about the specific vulnerabilities of pharmaceutical supply chains? Check out this McKinsey article on how pharmaceutical companies can become more resilient. THIS WEEK'S SOURCES WSJ: Probing for Weaknesses with AI 4 minutes | 9 days ago FDA.gov: Safeguarding Supply Chains 20 minutes | 3 years ago CLASSIFIEDS Being informed is a priority for our readers, but paywalls can be a huge barrier. Sometimes we just need to read that one article from that one publisher, but we can't pay for just that article. We have to purchase a whole subscription. Not anymore! Zette gives you pay-per-article access to premium journalism. For just $9.99 a month, you can unlock 30 articles from behind paywalls with Zette's browser extension. With Zette, you can open, read, and share premium content while still supporting the important journalism from local papers to national outlets! Join the waitlist today and be the among first to download the Zette browser extension.   >> Join the Waitlist Today ASCII-ING ABOUT THE NEWS ! ! ^ / \ /___\ |= =| | | | | | | | | | | | | | | | | | | /|##!##|\ / |##!##| \ / |##!##| \ | / ^ | ^ \ | | / ( | ) \ | |/ ( | ) \| (( )) (( : )) (( : )) (( )) (( )) ( ) . . . What's this latest mission for? Space cleanup, of course. Art Credit: ASCIIArt.eu Share Tweet Forward to Friend Copyright © 2022 Below the Fold, All rights reserved. You are receiving this email because you opted in via our website. Our mailing address is: Below the Fold 2261 Market St # 4135 San Francisco, CA 94114-1612 Add us to your address book Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.

Existing investors land startups bigger checks

Sizing up the market for code-completion tools; tech investors help untangle the supply chain; Plaid, Airtable layoffs; TripActions lands $400M credit

Read online | Don't want to receive these emails? Manage your subscription. Log in The Daily Pitch: VC, PE and M&A December 9, 2022 The Daily Pitch is powered by PitchBook's industry-defining research and best-in-class data In today's Daily Pitch, you'll find: Our latest analyst note explores existing investors' impact on the fundraising process, deal size, valuation step-ups and overall returns for VC firms and startup founders. Get a visual on VC investment in the supply chain tech sector with our latest market map. Chart of the day: VC fintech exit activity, from our Retail Fintech Report.   Today's Top Stories   Existing investors help startups land bigger checks with insider-led rounds Existing investors are some of the most effective resources in VC fundraising. Investors offer insightful advice, provide access to their networks and influence the due diligence process—all actions that can ultimately produce valuation step-ups in subsequent financing for startups and signal a strong preliminary investment track record to VCs' prospective LPs. In 2022, new financing rounds led by existing investors—known as insider-led rounds—had a median deal size of $14.1 million, nearly triple that of the non-insider-led round median of $5.5 million. In our latest analyst note, Who Benefits from Insider-led Rounds?, we explore the influence of existing investors on the fundraising process, deal size, valuation step-ups and overall returns for VC firms and startup founders. read it now   Share: Market Map: Tech investors work to untangle the supply chain (Travel mania/Shutterstock) While the supply chain continues to untangle, geopolitical issues ranging from China's recently relaxed zero-COVID policy to the war in Ukraine have prevented a complete return to normal. American investment in China has also plummeted as a result of new policy in the US, raising questions as to how the supply chain will adapt going forward, given previous reliance on Chinese manufacturing and labor. Explore our Supply Chain Market Map to find out how VCs are investing through the uncertainty. see the data   Share:   A message from West Monroe   Signature research: The Future of Diligence in Private Equity Private equity's approach to diligence is evolving. The process is becoming more sophisticated as firms increasingly use data to improve efficiency with acquisitions. West Monroe's latest report analyzes the state of diligence in private equity and how investors are adapting to a digital future. West Monroe surveyed 100 U.S. private equity leaders and found: 68% say they will use more technology and tools vs. people to get the job done 67% of respondents say their current approach to ESG diligence is consistent across targets, and only 40% say they will maintain that consistency 27% say "recommendations aligned to the investment thesis" is the most valued part of diligence today, but 40% say it will be the most valued part in the future Get the Report Share:   My phone can write my texts, why not my code? Our phones can write our texts, our email clients can craft our replies, and our word processors can quietly fix our grammar. Now, machine learning algorithms can write code. Or at least, they're getting there. While code-completion tools are still a long way from commercialization, their early success promises to help developers save time and eventually steer clear of tedious troubleshooting. Our latest emerging space brief sizes up VC activity for AI-powered code completion and breaks down how these tools work, some of their limitations, and what the future holds for the nascent sector. read it now   Share: TripActions lands $400M credit as rivals feel growing pains (Olena Yakobchuk/Shutterstock) TripActions, a corporate travel and expense-management specialist, has raised a $400 million credit facility, less than two months after closing an equity round at a $9.2 billion valuation—a significant jump from the $7.5 billion it garnered a year prior. TripActions' revenue evaporated at the start of the pandemic, and the company was forced to lay off staff. Unlike many of its rivals, TripActions has likely operated in a more efficient manner since then, said Rudy Yang, a fintech analyst at PitchBook. read more   Share: Mind the GAAP: How investors can assess earnings quality (wrangler/Shutterstock) When it comes to earnings, both quality and quantity matter. And while investors know what they're getting with standardized metrics, non-GAAP earnings can be a useful tool for investors—provided you know what to look for. In a recent report, Morningstar analysts lay out how to assess non-GAAP earnings, with commentary on common red flags as well as useful data that can inform investment choices. read the report   Share: Recommended Reads The great chip war—and the challenge for global diplomacy. [Financial Times] When might air travel return to pre-pandemic levels? Here's the forecast. [Visual Capitalist] While many crypto exchanges may be collapsing, asset managers like Hamilton Lane, KKR and Apollo are betting that the underlying tech—blockchain—will persist. [The Wall Street Journal]   Since yesterday, the PitchBook Platform added: 452 Deals 1946 People 552 Companies 22 Funds See what our data software can do   Quick Takes     The Daily Benchmark     2013 Vintage Global Debt Funds     A message from PitchBook Media     PitchBook's 2023 Media Kit released     VC Deals     Customcells soars with $63M     GoBolt nets $55M     Dantari launches with $47M     UnaBiz secures $25M extension     Amex backs hotel booking startup     PE Deals     CPPIB-backed company secures $150M offshore wind lease     GoodLeaf Farms raises $110M     Apogee secures $149M equity fundraise     WHP Global, Express ink $250M+ deal     Portfolio Companies     Airtable loses executives, lays off staff     Plaid cuts 20% of workforce     Exits & IPOs     Banzai to go public via SPAC, acquire Hyros     IBM strikes deal for Arlington-backed Octo     Fundraising     Sentinel Capital closes two funds on $5.2B     Union Square raises $200 for second climate fund     Corporate M&A     First Mode to nab $200M investment from Anglo American       The Daily Benchmark   2013 Vintage Global Debt Funds Median IRR 7.80% Top Quartile IRR 9.11% 1.23x Median TVPI Select top performers York Special Opportunities Fund II Davidson Kempner Long-Term Distressed Opportunities Fund II Oaktree Real Estate Debt Fund *IRR: net of fees 57 Funds in Benchmark » Check out the latest version of PitchBook Benchmarks   A message from PitchBook Media   PitchBook's 2023 Media Kit released Year to date, PitchBook's newsletters have over 161 million impressions and over 744,000 report downloads. Partnering with PitchBook Media is a way to feature your firm's insights in one of the most popular venues for timely and relevant PE and VC articles, news, asset class reports and custom white label reports. The brand-new 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:   VC Deals   Customcells soars with $63M German battery maker Customcells has raised a $63 million Series A. The round was led by World Fund, a climate-focused VC, and carmaker Porsche. View round   View similar company »   GoBolt nets $55M Logistics startup GoBolt has closed a C$75 million (about $55 million) Series C. The round was led by Yaletown Venture Partners and joined by Ingka Investments. View round   View similar company »   Dantari launches with $47M Dantari, a company that is developing therapeutics to target tumors, has raised a $47 million Series A led by Westlake Village BioPartners and Caltech. View round View similar company » UnaBiz secures $25M extension UnaBiz has raised an additional $25 million for its Series B led by Sparx Group, bringing the round's total to $50 million. The Singapore-based startup offers internet-of-things services, including SigFox, which it acquired in April. View round   View 16 competitors »   Amex backs hotel booking startup American Express Ventures, the VC arm of the credit card giant, has invested an undisclosed amount in Selfbook. The hotel booking SaaS company closed a $40 million Series A last year led by Tiger Global. View round   View 4 competitors »     Don't miss our upcoming webinar The crypto market has lost some of its luster since its resurgence in 2021, with values dropping and companies and investors alike leaving the industry. But there is still ongoing VC interest, and we predict a significant amount of deployed capital in the next few years. Join our webinar to get the perspectives of industry investors and PitchBook emerging tech senior analyst Robert Le on how this technology can move forward. Key topics include: How this crypto bear market is different from past downturns. What investors are avoiding in this market and where they see opportunities. Viewpoints on risk management, security flaws, regulations and other crypto trends. Register now to secure your spot. Share:   PE Deals   CPPIB-backed company secures $150M offshore wind lease Golden State Wind has agreed to spend $150 million on an offshore lease near central California following the first US federal offshore wind lease auction for the West Coast. Newly created Golden State is a joint venture of the Canada Pension Plan Investment Board and Ocean Winds, itself a joint venture of Engie and EDP Renováveis. View details   View similar company »   GoodLeaf Farms raises $110M Power Sustainable Lios has joined in a C$150 million (about $110 million) round of growth equity funding for GoodLeaf Farms, a Canadian vertical farming company. McCains Foods, a Canada-based frozen food producer, also invested in the round. View deal   View similar company »   Apogee secures $149M equity fundraise Apogee Therapeutics has raised $149 million in a Series B led by Deep Track Capital and RTW Investments. The biotech company's founding investors, Venrock Healthcare Capital Partners and Fairmount Partners, also participated. View deal   View similar company »   WHP Global, Express ink $250M+ deal Oaktree Capital Management-backed brand manager WHP Global has struck a deal with clothing retailer Express. The companies agreed to form a joint venture that contains parts of Express' intellectual property, to which WHP will contribute $235 million for a 60% stake. WHP also agreed to buy a 7.4% stake in Express for nearly $25 million in a PIPE deal. View details   View 33 competitors »     Portfolio Companies   Airtable loses executives, lays off staff No-code software developer Airtable is cutting 20% of its staff and losing its chief revenue officer, chief product officer and chief people officer, TechCrunch reported. Just last year the company garnered an $11 billion valuation. View details   View 69 competitors »   Plaid cuts 20% of workforce Plaid, a fintech startup that connects bank accounts to financial applications, is laying off about 20% of its workforce. In a message to Plaid employees, CEO and co-founder Zach Perret said, "Revenue growth did not materialize as quickly as expected." Last year, the company raised a $425 million Series D that raised its valuation to $13.4 billion. View details   View 48 competitors »     Exits & IPOs   Banzai to go public via SPAC, acquire Hyros Marketing startup Banzai has agreed to go public via a merger with blank-check company 7GC & Co. Holdings. The company will trade on the Nasdaq with a combined enterprise value of $380 million. After the merger is completed, Banzai has agreed to acquire advertising startup Hyros for $110 million. Banzai is backed by investors including Tribe Capital and DNX Ventures. View details   View 5 competitors »   IBM strikes deal for Arlington-backed Octo IBM has agreed to acquire Octo, a US federal contractor that provides IT modernization and digitization, from Arlington Capital Partners, which acquired Octo in 2019. IBM plans to fold the company into its consulting business. View details   View 57 competitors »     Fundraising   Sentinel Capital closes two funds on $5.2B Sentinel Capital Partners has closed two of its funds—Sentinel Capital Partners VII, an equity fund, and Sentinel Junior Capital II, a structured capital solutions fund—on $4.3 billion and $835 million, respectively. The equity fund closed above its hard cap. View details   View 234 investments »   Union Square raises $200 for second climate fund VC firm Union Square Ventures has closed its second fund targeting climate-focused startups on $200 million, The Information reported. Union Square was an early backer of Twitter and Etsy, and previously raised $162 million for its first climate vehicle. View fund   View 197 investments »     Corporate M&A   First Mode to nab $200M investment from Anglo American London-based mining company Anglo American has agreed to merge part of its business with Seattle-based First Mode, creating a company valued at $1.5 billion that will supply Anglo with hydrogen fuel cell vehicles. Anglo also said it would invest $200 million in First Mode. View details   View similar company »     Chart of the Day   Source: PitchBook's Q3 2022 Retail Fintech Report   Who's in the newsletter today? People Zach Perret Investors 7GC & Co. Holdings American Express Ventures Anglo American Arlington Capital Partners Canada Pension Plan Investment Board DNX Ventures Deep Track Capital EDP Renováveis Engie Fairmount Partners IBM Ingka Investments McCains Foods Oaktree Capital Management Ocean Winds Porsche Power Sustainable Lios RTW Investments Sentinel Capital Partners Sparx Group Tiger Global Tribe Capital Union Square Ventures Venrock Healthcare Capital Partners Westlake Village BioPartners World Fund Yaletown Venture Partners Companies Airtable Apogee Therapeutics Banzai Caltech Customcells Dantari Etsy Express First Mode GoBolt Golden State Wind GoodLeaf Farms Hyros Octo Plaid Selfbook SigFox Twitter UnaBiz WHP Global   About PitchBook | Terms of use | Advertise with us | Contact Follow us: This email was sent to pitchbook@quicklydone.com via the PitchBook Platform. Do you want to change your email address, get a different edition or unsubscribe? Manage your subscription here. © 2022 PitchBook. Win what's next. 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