 QoQ Venture debt funding for tech startups The venture capital retrenchment means that startups have had to agree to stringent deal terms favoring venture firms and lower valuations while raising new funding in the last few months. Hence, an increasing number of startups are turning to venture debt, revenue-based financing, and other non-dilutive financing options rather than raising equity financing. Venture debt deal value for tech startups in the first half of this year has reached $14.1B, half of the $28.3B annual figure for last year. More: - In these times, revenue-based financing, in which startups receive upfront capital against recurring revenues, has become increasingly popular.
- The upside of revenue-based financing investments is the low turn-around time to receive financing and the availability of additional credit lines as the startup scales.
- Capchase, a fintech startup that offers revenue-based financing to software companies at a 4% to 10% interest rate, has amassed $950M in debt and equity funding to date.
- The firm was valued at $780M earlier this year and raised $80M in Series B funding, led by 01 Advisors in March.
- In mid-July, it closed another $400M in debt funding, buoyed by a 50% increase in revenue-based finance lending between April and May this year.
- Another revenue-based financing lender, Pipe, valued at $2B last year, lends to startups with between $100,000 and $1B in annual recurring revenue.
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 YoY fundraising for debut venture funds The number of new venture firms in Europe raising their first funds has slowed due to macroeconomic volatility. Per Pitchbook data, in the first half of the year, 26 first-time vehicles closed with funds totaling $1.63B (€1.63B), amounting to a third of the total $5.9B (€5.8B) raised in the entire last year. The funding count for the first half of this year is also 34% of last year. More: - Median sizes for first-time funds have seen a 52% YoY drop to $27M (€26.5M) in H1 2022, per Pitchbook’s Q2 2022 European Venture Report.
- Last year, median sizes for first-time funds were 90% higher than in 2020.
- For North America, first-time funds raked in $14.6B last year.
- Notable first-time funds in Europe include Stellantis’ $330M (€300M) debut fund launched in March and Synthesis Capital’s $300M fund launched in May.
- Overall capital raised across all venture funds is said to be in line with last year’s total, despite a rocky start to venture funding in Europe.
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Digital healthcare platform Cleerly closed its Series C funding round with $192M in financing. The funding was led by T.Rowe Price and Fidelity Management and Research Company. The New York-based firm leverages AI to diagnose heart conditions and evaluate coronary blockages. More: - Peter Thiel participated in the oversubscribed funding round along with Sands Capital, Mirae Asset Capital, Breyar Capital, Vensana Capital, LRV Health, Cigna Ventures, and more.
- The new fund brings the firm’s total funds raised to date to $248M.
- Cleerly intends to use the proceeds from the funding to grow its team, expand its business reach, and support its large-scale outcomes research programs.
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Ghost Kitchen startup Kitchen United has raised $100M in a Series C funding round backed by Kroger, mall operator Simon Property Group, and Burger King’s parent, Restaurant Brands International. Kitchen United provides professional kitchen space to restaurants for delivery-only meals and provides the technology that supports the delivery service. The company claims to offer turnkey solutions that eliminate barriers to growth for restaurant brands. More: - Kitchen United opened its first location in Southern California in 2018 and currently operates 15 locations in the U.S.
- The company operates at the intersection of technology, food, and real estate.
- The company plans to use the new funds to expand its operations to over 500 locations in the next five years.
- CEO Michael Montagano said the company plans to leverage the malls, shopping centers, and supermarkets operated by its new investors to aid its growth.
- Kitchen United has raised $175M to date; other investors include Google Ventures (GV), Fidelity, RXR Realty, DivcoWest, and supply chain management firm HAVI Group.
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Scalable and secure Layer 1 blockchain developer Aptos Labs clinched $150M in financing. The Series A funding round was led by FTX Ventures and Jump Crypto. While the firm’s new valuation was not disclosed, Bloomberg reports that it has more than doubled since the startup’s $1B valuation in March. More: - From the preceding funding round in March, Aptos Labs raked in $200M in seed capital led by Andreessen Horowitz.
- The lead seed investor also backed the current funding round along with Apollo, Franklin Templeton, Griffin Gaming Partners, and Circle Ventures.
- The Palo Alto, Calif.-based startup was co-founded by Mo Shaikh and Avery Ching, former employees of Meta Platforms Inc.
- In their previous role, they both worked on Meta’s cryptocurrency project called Diem.
- Aptos leverages Move, the underlying programming language for Diem, to power its blockchain, which supposedly facilitates quick and cost-effective transactions.
- Incoming funds will help the company further develop its project.
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Biotech startup Replay launched on Monday with a $55M seed investment led by KKR and OMX Ventures. The genome writing company aims to reprogram biology by writing and delivering big DNA. Other investors include ARTIS Ventures, Lansdowne Partners, SALT, DeciBio Ventures, and Axial. More: - Replay was co-founded by Dr. Adrian Woolfson BM BCh Ph.D., Lachlan MacKinnon, Professor David Knipe Ph.D., and Professor Ron Weiss Ph.D.
- They collectively have decades of experience in clinical medicine, genomic medicine, and biological engineering.
- The company aims to transform the future of clinical therapeutics by solving biology’s most complex problems.
- Replay uses a new corporate structure that separates technology development from therapeutic product development within disease area-specific product companies.
- Replay is headquartered in San Diego, California, and London, U.K.
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- Thailand’s Kasikornbank (KBank) plans to invest between $50M and $100M in early- to growth-stage fintech, consumer tech, and enterprise technology startups through a new fund for its venture capital arm, Beacon VC. The firm’s venture capital pool had expanded to $185M in 2021.
- Anri Venture, a Japanese venture capital firm, held the first close of its fifth flagship fund at $102M. The firm is targeting a $288M final close for the fund.
- Quantum dot and microLED technology developer Nanosys held an initial close of its Series B equity and debt funding at $50M. Fortress Investment Group, Centerbridge Partners, and Kilonova Capital have backed the funding.
- Agriculture and food production software developer Arable secured $40M from its Series C fundraiser. Galvanize Climate Solutions led the fundraising, joined by Qualcomm Ventures, Prelude Ventures, S2G Ventures, and Middleland Capital, amongst others.
- Rush ReCommerce closed its Series A funding round with $12.9M in financing led by Beringea. Advantage Capital participated in the funding along with other existing shareholders.
- San Francisco, Calif.-based proptech software solutions provider Density acquired French data science firm Prevision.io for an undisclosed amount.
- Super Coffee, the No. 3 ranked bottled coffee brand in the U.S. behind Starbucks and Dunkin’, is replacing the negatives with only positive ingredients.*
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 |  | Karan Chafekar is a Management Consultant, Business enthusiast, and Licensed Pilot. | | | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 Ford. | |
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