Why investors are pouring capital into fertility startups

The business of getting pregnant is attracting big dollars.

My colleague Beth Kowitt has an incredibly interesting and deeply reported story on the driving forces behind the fertility sector’s growth. Investors poured $646 million into the fertility sector in 2018, according to PitchBook. Startups have launched to address egg freezing, ovulation tracking, IVF financing, at-home hormone testing, and more.

“Real dollars are starting to flow into this category,” Stephanie Palmeri, a partner with VC firm Uncork Capital, told Coins2Day. Last year, I noticed an uptick in venture capital funding for male fertility startups in particular. At the time, I noted that awareness is growing around male fertility, and startups and their deep-pocketed backers are here to capitalize on it.

For all its progress and momentum, the modern fertility industry remains relatively immature. While there’s no question that companies in the space are making fertility more accessible and affordable, they have been criticized for focusing on wooing customers who may not necessarily need the service. Kowitt notes that there are medical insiders who call it “the Wild West of medicine” — under-regulated and commercially driven, with certain players overpromising what treatment can do.

From the story:

While some cheer the sector’s focus on women’s health, others say it has reinforced stereotypes that equate women’s worth with their ability to reproduce. And it is women whom the industry targets: Despite the fact that men cause or contribute to infertility in about half of cases, companies have only recently turned their attention to male partners. There’s no denying that fertility is emotionally complicated in ways most other areas of the health care system are not. “There’s little we care about more than our children, which makes this a particularly fraught and charged area,” says Greely. “The stakes are just higher when you play for babies.”

Read the full feature here.

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Polina Marinova
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VENTURE DEALS

- GoPuff, a Philadelphia-based on-demand delivery startup, raised $750 million in funding from SoftBank in August, with an option to invest an additional $250 million in 2020, according to The Information. Read more.

- AvidXchange, a Charlotte, N.C.-based provider of accounts payable and payment automation solutions for the middle market, raised $260 million in funding. TPG Sixth Street Partners led the round.

- AppsFlyer, an Israel-based mobile ad attribution company, raised $210 million in Series D funding at a valuation of $1.6 billion. General Atlantic led the round, and was joined by investors including Qumra Capital, Goldman Sachs Growth, DTCP (Deutsche Telekom Capital Partners), Pitango Venture Capital, and Magma Venture Partners.

- Snyk, a London-based security company, raised $150 million in funding at a valuation of more than $1 billion. Stripes led the round, and was joined by investors including Accel, Coatue, Tiger Global, BoldStart, GV, Canaan,Trend Forward, Amity and Salesforce Ventures.

- Qonto, a Paris-based challenger business bank, raised $115 million in Series C funding. Tencent and DST Global co-led the round.

- scoutbee Inc, a Germany-based supplier discovery platform, raised $60 million in Series B funding. Atomico led the round, and was joined by investors including Lakestar, Next47, HV Holtzbrinck Ventures, 42CAP and Toba Capital.

- The Athletic, a San Francisco-based subscription-based digital sports media company, raised $50 million in Series D funding, according to Axios. Bedrock Capital led the round, and was joined by investors including Emerson Collective, Plus Capital, Founders Fund, Y Combinator, Evolution Media and Powerhouse Capital. Read more.

- Flutterwave, a San Francisco-based payments technology company with operations in Africa, raised $35 million in Series B funding. Greycroft and eVentures co-led the round, and was joined by investors including CRE Ventures, FIS, VISA, and Green Visor.

- Soft Robotics, a Cambridge, Mass.-based robotics company. Raised $23 million in Series B funding. Calibrate Ventures and Material Impact co-led the round, and was joined by investors including Honeywell, Hyperplane, Scale, Tekfen Ventures, and Yamaha.

- Home, a Berlin-based company aiming to reduce complexity in the housing experience, raised €11 million ($12.2 million) in Series A funding. Investors include Capnamic, the EQT Ventures fund, FJ Labs and Redalpine.

- Elder, a U.K.-based care home alternative, raised £8.2 million ($10.7 million) in funding. Investors includes Acton Capital and MMC Ventures.

- Mine, an Israel-based company that helps people manage their personal data online, raised $3 million in seed funding. Investors include Battery Ventures and Saban Ventures.

PRIVATE EQUITY DEALS

- Magna Legal Services, a portfolio company of CIVC Partners, acquired RecordTrak, Inc, a King of Prussia, Penn.-based provider of litigation support solutions for law firms, insurance companies, and corporations. Financial terms weren't disclosed.

- Ares Holdings, a portfolio company of Ares Management Corporation (NYSE: ARES) agreed to acquire a controlling interest in SSG Capital Holdings Limited, an Asia-based alternative asset management firm.

- Thompson Street Capital Partners and Sandbox Insurtech Ventures will acquire Data Dimensions, a Janesville, Wisc.-based provider of outsourced document handling and workflow solutions for the P&C insurance, financial services and government industries. Financial terms weren't disclosed.

OTHER DEALS

- Horse & Country TV acquired EQ Sports Net, an equestrian streaming provider. Financial terms weren't disclosed.

IPOs

- Reynolds Consumer Products, the maker of Reynolds aluminum foil and Hefty trash bags, says it plans to raise $1.25 billion in an IPO of 47.17 million shares priced between $25 to $28 apiece. The firm posted revenue of $3 billion in 2018 and net income of $337 million. Rank Group backs the firm. It plans to list on the Nasdaq as “REYN.” Read more.

- 1Life Healthcare, a San Francisco-based chain of primary-care clinics known as One Medical, says it plans to raise $262.5 million in an IPO of 17.5 million shares priced between $14 to $16 apiece. The firm posted revenue of $212.7 million in 2018 and losses of $45.5 million. The Carlyle Group (26.8%), Benchmark (13%), and Oak Investment Partners (11.4%) back the firm. It plans to list on the Nasdaq as “ONEM.” Read more.

- Black Diamond Therapeutics, a Cambridge, Mass.-based biotech developing small molecule, tumor-agnostic therapies, says it plans to raise $151.3 million in an IPO of 8.9 million shares priced between $16 to $18 apiece. The firm has yet to post a revenue and posted losses of $8.9 million in 2018. Versant Ventures (42%), New Enterprise Associates (11.2%), and RA Capital Management (6.7%) back the firm. It plans to list on the Nasdaq as “BDTX.” Read more.

- Itsu, a New York-based Asian-inspired food chain backed by the co-founder of Pret A Manger, is seeking an IPO in the U.S., MarketWatch reports. Read more.

FIRMS + FUNDS

- Asterion Industrial Partners, a Spain-based investment management firm, raised €1.1 billion ($1.2 billion) for its inaugural fund Asterion Industrial Infra Fund I, FCR.

- MassMutual Ventures, a Boston-based venture capital arm of Massachusetts Mutual Life Insurance Company, raised $100 million for its second South Asia fund.