Announcing the 3rd cycle of our evergreen fund with over $600M of committed capital

By David Singer, Ambar Bhattacharyya, Matt Kinsella, and Prateesh Maheshwari

We are excited to announce that we recently closed the third fund cycle of Maverick Ventures, with over $600M in committed capital. This enables us to keep doing what we love to do — support our existing portfolio companies and invest in new, passionate entrepreneurs working in the technology and healthcare fields. Our evergreen fund structure allows us to invest in companies from inception through maturity.

Alongside this announcement, we thought it made sense to look back over the past 12 months from both a market and portfolio perspective. 2020 illuminated many vulnerabilities of our systems, especially within healthcare. Despite this, we saw first-hand how many ambitious and determined entrepreneurs demonstrated innovation and agility when we needed it most. Many of our portfolio companies stepped up in the face of uncertainty to quickly adapt their business models and respond to customer needs. Collective Health, the cloud-based, integrated health platform, launched an Online Resource and 60-second risk assessment tool to reduce the burden on hospital systems. You can find a full list of the new products and services our portfolio companies launched in response to COVID-19 in a blog post here.

Our portfolio is just a small part of the overall incredible growth in digital health over the last year. The industry experienced unprecedented growth — according to a 2020 Market Insights Report, US digital health companies raised $14.1B in venture funding — a 72% increase over 2018. This was certainly reflected in our activity last year, as we saw companies through IPOs, SPACs, M&A, and funding rounds. A quick recap:

IPO

On the IPO front, Seer, the biological tools company enabling scientists and clinicians to ask questions about the proteome, completed an IPO in December 2020. Last year, we also congratulated Galecto on their IPO announcement. hims & hers closed a well-received SPAC merger and listed on NYSE following 91% year-over-year growth.

M&A

Docent Health, providing personalized care at scale, was acquired by GetWellNetwork to advance their patient navigation platform. And rounding out Maverick’s M&A’s in 2020, Collective Medical, a care coordination platform, was acquired by PointClickCare, a provider of cloud-based technology for long-term and post-acute care facilities.

Portfolio support

As mentioned, the pandemic highlighted the health disparities we face in our cities and communities; Brooklyn-based Cityblock is aiming to change that through value-based care, and after a $352M Series C round, the company is better positioned to do that. We also invested in D-ID, a facial anonymization solution to protect biometric data, Centivo, a value-based health plan, and BioCatch, software that predicts and prevents fraud based on the way people interact with their devices.

What Comes Next: 2021 and announcing our new fund cycle

While we’re proud of the work we’ve done, there’s more work to do. This year, we expect to see further investment in digital health and wellness, as well as other technology focus areas for us such as marketplaces, cybersecurity, and SaaS.

This past year has been challenging, but we have been so inspired by the founders and companies we work closely with as we all navigate what it means to work toward and live in a post-pandemic world. We look forward to working with you as entrepreneurs, co-investors, and partners in the ecosystem in the years to come. Onwards!

The views expressed herein are solely the views of the author(s) and are not necessarily the views of Maverick Capital, Ltd. or any of its affiliates. They are not intended to provide, and should not be relied upon for, investment advice.

As the venture capital arm of Maverick Capital, we partner with entrepreneurs in the healthcare, software & technology sectors. More at maverickventures.com