The Daily Startup: VC Investment in Health Care Nears Record Level

Venture investment in U.S.-based health-care companies reached $11.67 billion through the third quarter of this year, according to data from Dow Jones VentureSource. The total through the third quarter is just shy of last year’s total of $11.93 billion, Brian Gormely reports for Dow Jones VentureWire.

The sector received $3.74 billion in investment in the third quarter. The bulk of the funding, 55%, went to biopharmaceutical companies.

ALSO IN TODAY’S VENTUREWIRE (subscription required):

ROOY Inc. has raised $3.4 million in seed funding to grow its shoe design and manufacturing platform. Formation 8 led the investment and was joined by Seoul-based private-equity firm Korea Investment Partners.

Mimecast Ltd.–a London-based company that offers software that manages various email products, including security, archiving, data-loss prevention and electronic discovery–has filed for its initial public offering.

Tinderbox Inc. raised $7 million in new venture funding to help professionals create and keep their important work materials in a central cloud-based app, instead of in disparate PDFs, PowerPoint and Word files and folders. Greycroft Partnersand Allos Venturesled the deal and were joined by High Alpha and others.

Vittamed Corp. has raised $10 million to release its intracranial pressure monitor abroad and seek regulatory approval for the diagnostic device in the U.S. Xeraya Capital led the round with an $8 million commitment and was joined by existing investor Imprimatur Capital and other investors.

(VentureWire is a daily newsletter with comprehensive analysis of all the investments, deals and personnel moves involving startups and their venture backers. For a two-week trial, visit, scroll to the bottom and click “try for free.”)


The Deals That Made Daily Fantasy Take Off. Daily fantasy sports services are under pressure with the U.S. Justice Department and the Federal Bureau of Investigation opening probes into the business model of these companies, and after gaming regulators in Nevada ordered the sites to cease operations in their state. One of the large questions underlying questions is how the companies got so big so fast, The Wall Street Journal’s Matthew Futterman and Sharon Terlep report. Two of the largest of the companies are DraftKings Inc. and FanDuel Inc., both of which shot forward with large funding rounds within the last few months.

Meet Venture Capital’s Teenage Analyst. At 18 years old, Tiffany Zhong stands out in Silicon Valley, a place where young founders of startups aren’t rare. Ms. Zhong isn’t a founder, but rather an analyst and associate at the venture-capital firm Binary Capital, the WSJ’s Christopher Mims reports. Ms. Zhong is well connected, and her mentors include Stewart Butterfield, chief executive of Slack, and Steve Sinofsky, former head of Windows at Microsoft Corp. and a board partner at venture-capital firm Andreessen Horowitz. Just as important are the young entrepreneurs with whom she is connected–many of which are age or younger.

SpaceX Plans to Resume Falcon 9 Rocket Launches by Mid-December. Privately held space company Space Exploration Technologies Corp., commonly known as SpaceX, said it plans to resume launching its Falcon 9 rocket by late November or mid-December, the WSJ’s Andy Pasztor reports. The launch would be the first since the failure shortly after the launch of a rocket in June, which destroyed the rocket, its unmanned capsule and more than two tons of supplies destined for the international space station.

Write to Mike Billings at Follow him on Twitter at @mbillings