Venture capital fundraising hit record highs in 2022, but also saw some major drops as capital markets cooled quickly. Still, startups in Greater Philadelphia pulled in large chunks of cash this year.
Philadelphia-area startups raised a record $2.69 billion in the second quarter across 123 deals. The first quarter saw even greater volume, with 155 deals totaling $1.3 billion. That was before funding fell off a cliff in the third quarter, with 89 deals totaling just under $620 million, according to data from Pitchbook.
Two of the largest deals of the year were made by the region's unicorns: Gopuff and dbt Labs. Gopuff closed on a $1.5 billion convertible note in May that it issued last December, a bright spot in a year marred by layoffs and downsizing. Dbt Labs raised a $222 million Series D in February that shot its valuation to $4.2 billion and put it among the most well-funded startups in the region.
Houwzer, the technology-driven real estate startup, brought in the fourth largest deal with a Series B round totaling close to $120 million. The Philadelphia firm also recently completed the acquisition of Denver-based competitor Trelora in a play to scale nationally.
While some of the region's big-name startups closed the largest funding rounds of the year, many of 2022's other top deals came from biotechnology and health care companies. Here is a look at the top 10 fundraising deals made by Philadelphia-area startups in 2022, according to data compiled by Pitchbook.
- Gopuff — $1.5 billion convertible note: The Callowhill-based delivery startup secured a convertible note led by Guggenheim Partners with participation from Disney CEO Robert Iger.
- Marlette Funding — $225 million Series E: Wilmington-based lending and credit operator Marlette Funding closed on the Series E in March. The fundraising round was led by Healthcare of Ontario Pension Plan with participation from Davidson Kempner.
- Dbt Labs — $222 million Series D: The late-stage funding in February for Philadelphia-based dbt Labs brought the data-analytics firm's total fundraising to $414.4 million since launching in 2016.
- Houwzer — $118 million Series B: The Philadelphia-based real estate startup closed a Series B fundraising round in February. The round comprised $18 million in equity and a $100 million warehouse line of credit, a type of credit given to mortgage lenders.
- Mineralys — $118 million Series B: The Main Line biopharmaceutical company's oversubscribed and upsized Series B financing was led by RA Capital Management and Andera Partners. The company is working on a treatment for high blood pressure.
- Castle Creek Biosciences — $112.8 million stock sale: The Exton-based cell and gene therapy company raised the funding in an oversubscribed and upsized preferred stock sale in May, months after it withdrew its plans for an IPO.
- Orchestra Biomed — $110 million Series D: The New Hope-based medical device company closed on the Series D in July with plans to go public through a special purpose acquisition company, called Health Sciences Acquisition Corp. 2. The investment came from Medtronic, funds managed by RTW Investments, Perceptive Advisors, Terumo Corp., SternAegis Ventures and other investors.
- Vitara Biomedical — $75 million Series B: The University City health care startup that focuses on maternal and infant health raised funding that totaled $75 million in September. The round was led by Sands Capital and included participation from Google Ventures and the Children’s Hospital of Philadelphia Foundation, which had previously invested in Vitara.
- Code Bio — $75 million Series A: The Hatfield biotechnology company raised the Series A in June with the goal of doubling its workforce. The Series A round was led by Northpond Ventures of Bethesda, Maryland. Code Bio is developing technology for the targeted and non-viral delivery of genetic medicines.
- iEcure — $65 million Series A1: IEcure closed on the fundraising round co-led by Novo Holdings and Lyfe Capital in late November. The company, which is moving from Plymouth Meeting to Blue Bell, will use the funding to advance its in vivo gene-editing technology aimed at treating rare pediatric liver diseases.
