Introducing Deep Technology Venture Capital (DTVC) - Issue #1
Don't worry, bonus materials have been included as part of the launch!
Welcome to Deep Technology Venture Capital (DTVC)!
DTVC is a newly-formed weekly publication dedicated to sharing information related to deep technology investments, deals, headlines, reports, and much more. Deep technology is where engineering meets scientific discoveries. It is perceived to be risky, challenging, only recently made possible, solves a real-world problem, and is not yet ubiquitous or widely adopted. The domain encompasses industries ranging from computing + infrastructure to aerospace + defense to life sciences.
Though there are numerous platforms providing coverage on sectors such as consumer, SaaS, climate, etc., there wasn’t a centralized source for all-things deep technology. DTVC aims to fill this void for the wider online community.
Over time, DTVC will add more resources such as technology primers, company deep-dives, industry market maps, a job board, entrepreneur spotlights, etc. Now, onwards!
The BFD: OpenAI Is Talking to Investors About Selling Shares at $29 Billion Valuation (WSJ)
Excerpt taken directly from article below. All credit goes to the WSJ and the article’s authors: Berber Jin and Miles Kruppa
OpenAI, the research lab behind the viral ChatGPT chatbot, is in talks to sell existing shares in a tender offer that would value the company at around $29 billion, according to people familiar with the matter, making it one of the most valuable U.S. startups on paper despite generating little revenue.
Venture-capital firms Thrive Capital and Founders Fund are in talks to buy shares, the people said. The tender could total at least $300 million in OpenAI share sales, they said. The deal is structured as a tender offer, with the investors buying shares from existing shareholders such as employees, the people said.
The new deal would roughly double OpenAI’s valuation from a prior tender offer completed in 2021, when OpenAI was valued at about $14 billion, The Wall Street Journal reported. OpenAI has generated tens of millions of dollars in revenue, in part from selling its AI software to developers, but some investors have expressed skepticism that the company can generate meaningful revenue from the technology.
Source: WSJ. See WSJ’s Joanna Stern head back to HS AP Literature and determine whether she can pass the class using OpenAI’s ChatGPT.
Deals of the Week (January 1 - 7, 2023)
Source: Asimov, empowering the genetic designers who are building the future.
Venture Fundings
Perspectum, an Oxford, UK-based precision healthcare company developing medical imaging tools to the improve the diagnoses of metabolic diseases and cancer, closed a $36mm Series C led by Oppenheimer Holdings. The biotechnology company has raised approximately $120mm since inception.
Profet AI, a Taiwanese provider of no-code AI/ML solutions that boosts efficiency for electronics, textile, semiconductor, and chemical manufacturers, has closed a $5.6mm Series A. The round was led by Darwin Ventures. Returning investors Hive Ventures, AUO and SVTI also participated, along with Harbinger VC and Jensen Capital Management. More info here.
Ganymed Robotics, a French company developing a novel therapeutic device designed to enhance surgical precision in knee replacement surgery, has raised an additional €15mm through a Series B extension, bringing the total amount raised to €36mm. See the press release here.
Qvantum, a Swedish heat-pump systems and technology firm, raised €42mm in a Series B financing round. Established in 1993, the company intends to use the funds to support its growth and expansion strategy, as well as accelerate its electric heat pumps and innovative technology into densely populated urban areas and cities across Europe.
Ensoma, a Boston, MA-based genomic medicines company developing one-time in vivo treatments that precisely engineer any cell of the hematopoietic system, announced a $85mm Series B financing and agreement to acquire Twelve Bio to advance portfolio of in vivo engineering cellular medicines.
Perceive Biotherapeutics, a San Francisco, CA-based biotech company focused on technologies and therapeutics in ophthalmology, raised $78M in Series B funding. The round was led by Johnson & Johnson Innovation – JJDC, Inc.(JJDC), with participation from Deerfield Management, Braidwell LP, the Retinal Degeneration Fund, and Catalio Capital Management, LP. More info here.
Asimov, a Boston, MA-based company synthetic biology startup which develops tools to design living systems, snapped $175mm in Series B funding. The round follows a $25mm Series A led by Horizons Ventures, who also participated in the Series B round.
Opsys Tech, an Israeli LiDAR automotive sensor developer, raised $36.5mm as part of its Series C funding, bringing in a cumulative $51.5mm from investors such as 83North, Osage University Partners, Translink Capital, and Saban Ventures, among others.
Volta Medical, a company headquartered in Marseille, France, secured €36mm in Series B funding to accelerate the adoption of its medical software designed to detect and prevent cardiac diseases arising due to atrial fibrillation.
ElectricPe, a Bengaluru, India-based EV charging platform that provides smart, affordable, and clean electric mobility solutions, raised a $5mm seed round led by Green Frontier Capital.
Other Fundings
Baraja, a Sydney, Australia-based developer of LiDAR technology that refracts light through a prism to scan the local environment, as opposed to relying on fragile moving parts and oscillating mirrors, received an undisclosed investment from Veoneer, a player operating in the automative security space. More info here.
Claria Medical, a San Francisco, CA-based startup developing minimally invasive surgical instruments to address unmet needs in gynecologic surgery, announced a strategic investment from Organon International (NYSE: OGN), a global women’s healthcare company. More info here.
Exits and New Funds
Flusso, a University of Cambridge spinout that develops flow sensor technology, has been wholly acquired by a Chinese entity for £28mm, as per company filings (UKTN)
The University of Chicago launches Polsky Deep Tech Ventures, a $20mm fund, to support startups bringing science and tech to market (UChicago News)
Acelyrin Inc., a biotechnology company backed with more than $550 million in venture capital, has acquired drug startup ValenzaBio Inc. to boost its pipeline of potential immunology drugs (WSJ)
Biotechnology investors from Avalon Ventures have formed Avalon BioVentures and raised $135 million for the new firm’s first fund (WSJ)
News Headlines
Josh Wolfe’s War: The Lux Capital Founder Blazes a Controversial Path in Defense Tech (The Information)
SolarSteam wins recognition for Canadian climate tech (SolarPaces)
Cambridge, UK chip startup Flusso acquired by Chinese firm (UKTN)
A New Area of A.I. Booms, Even Amid the Tech Gloom (The New York Times)
War in Europe Draws Investors to Drone, Battlefield AI Makers (BNN Bloomberg)
Ghost Writer: Microsoft Looks to Add OpenAI’s Chatbot Technology to Word, Email (The Information)
Steakholder Foods, Umami Meats Win $1M Grant to 3D Bio-Print Structured, Cultivated Fish Products (Sustainable Brands)
This 'Flying' Electric Boat Wants to Be the Tesla of the Sea (CNET)
Unpacking the “black box” to build better AI models (MIT News)
The Universe Is More in Our Hands Than Ever Before (The Atlantic)
Venture Capitalists Predict More Consolidation in Digital Health (WSJ)
Additional
Informational Video: Intro to Deep Tech with Dr. Josh Siegel (MIT Bootcamps)
Research Article: Deep Tech and the Great Wave of Innovation (BCG)
Research Report: Deep Tech Europe - Impact Report 2020 (European Innovation Council)
Jobs: EU-based Deep Tech Jobs
Article: AI and energy take the spotlight - Deeptech predictions for 2023 (Sifted)