South Florida healthcare-technology companies led Florida venture capital deals in the second quarter, according to a MoneyTree report by PricewaterhouseCoopers and CB Insights released Wednesday.
Florida deals in the quarter were led by Boca Raton-based Modernizing Medicine’s previously reported $231 million mega-round by private equity giant Warburg Pincus. Modernizing Medicine currently employs 550 people and is booking $100 million in annual revenue.
“If there was any doubt that you could found and scale a company in South Florida, hopefully those doubts are now erased,” CEO and co-founder Dan Cane said when the funding was announced. “We are proud to call South Florida our home.”
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Second in the state was Neocis, a Miami-based robotics company in the dental industry, with a $15 million round that included Mithril Capital Management of San Francisco, a venture firm led by Peter Thiel and Ajay Royan, and other undisclosed investors. According to Crunchbase, Neocis raised $2.4 million prior to this funding.
Neocis is focused on improving healthcare through robotic assistance. It manufactures and markets YOMI, a robot-assisted surgical platform for dental implant procedures. The company, led by CEO and co-founder Alon Mozes, announced it had received FDA clearance to market YOMI and that it had made its first sales in March. “We look forward to further demonstrating the benefits of YOMI to the surgeon’s practice and their patients and to bringing the system to select key opinion leaders in the United States,” Mozes, a biomedical engineer, said in March. Mozes was traveling and unavailable to comment on the news.
We are proud to call South Florida our home.
Dan Cane, Modernizing Medicine CEO
Florida companies took in 16 venture capital deals worth $291.1 million in the second quarter, up strongly from $156.9 million in the first quarter and $85.7 million a year ago, according to MoneyTree data. Of course, South Florida firms accounted for 85 percent of the total, thanks to Modernizing Medicine. Still, the nation’s third largest state ranked 11th for venture capital in the quarter, for both total dollars invested and number of deals, and continues to struggle in funding.
In addition to Modernizing Medicine and Neocis, South Florida companies that received the top investments in the second quarter included human analytics software company Kairos, $5.73 million, in a round that includes funding from New World Angels, and DadeSystems, which provides accounts-receivable solutions and received $2 million from Ocean Azul Partners.
Nationally, venture capital rose to the highest level in a year as investors deployed $18.4 billion to U.S. VC-backed startup companies across 1,153 deals, up 28 percent in dollars but down 4 percent in deals from Q1 2017, according to the MoneyTree survey. This was helped by 31 mega-rounds of $100 million or more, led by Lyft’s $600 million take. Like in South Florida, heathcare technology companies nationally scored a healthy bump, with total dollar funding jumping 63 percent.
“Q2 was a tale of two trends,” said Tom Ciccolella, U.S. venture capital leader at PwC. “U.S. deal activity continued its multi-quarter downward trend, but the growth rate of investments in dollar terms accelerated from the first quarter. A surge in mega-found deals, to the second-highest level seen to date, helped drive a robust level of quarterly VC funding.”
Globally, VC funding jumped 53 percent to an eight-quarter high of $42.9 billion, according to the report. MoneyTree results can be found at www.pwcmoneytree.com.
Nancy Dahlberg: @ndahlberg