Freenome: Funding Analysis

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Freenome: Funding Analysis

The three biggest investors of Freenome are RA Capital Management, Polaris Partners, and Andreessen Horowitz LLC. RA Capital Management & Polaris Partners led the $160M Series B Financing of Freenome in 2019 while Andreessen Horowitz led the $65 million Series A round in 2017 and $5.5 million seed round during 2016.
  • Freenome has raised $238 million in 5 funding rounds, the last two rounds being in August 2017 and July 2019.
  • Freenome Raises $160M in Series B Financing led by RA Capital Management and Polaris Partners.
  • Freenome announced that it has raised a huge Series A round — $65 million — led by Andreessen Horowitz, which also led the company’s $5.5 million seed round less than a year ago.
  • Freenome has announced that is has landed $5.5 million in seed funding led by Andreessen Horowitz.

THE THREE BIGGEST INVESTORS OF FREENOME

1. RA Capital Management

  • Type of company: RA Capital Management is a Venture Capital type company
  • Overview of the companies they invest in: They invest in companies in the life sciences and drug development sectors with promising technologies and products

2. Polaris Partners

  • Type of company: Polaris Partners is a Venture Capital type company
  • Overview of the companies they invest in: Polaris Partners has invested in exceptional healthcare and technology companies across all stages, from founding to profitable growth

3. Andreessen Horowitz LLC

  • Type of company: Andreessen Horowitz is a Venture Capital type company
  • Overview of the companies they invest in: Andreessen Horowitz LLC specializes in investing in seed, start-ups, early, mid-stage, growth, and late stage. The company prefers to invest in the social media business and technology sector with a focus on software, back-end infrastructure, infrastructure of the Internet, cloud computing, enterprise software and services, consumer, business Internet, mobile-Internet, consumer Internet, cloud computing, data storage, social network browsers data-storage, consumer electronics, networking functions, software related to biology, biotech, and medicine companies at the intersection of computer science and life sciences with a focus on digital therapeutics, cloud technology in biology, and computational medicine.

Valuation Multiples in the Healthtech/Health Hardware Industry

  • According to Mercer Capital, the MedTech/HealthTech Industry Valuation Multiples include — EV/Revenue is 4.7, EV/EBITDA is 20.2, EBITDA Margin is 23.2%, LTM P/E is 39.2, Forward P/E is 25.6, Revenue Growth (from LTM) is 7.5%, EBITDA Growth (from LTM) is 8.9%, and Forward Price to Earnings/Growth is 1.8.
  • Mercer Capital is a business valuation and financial advisory firm founded in 1982 and serving diverse and international clients range from public to private, from smaller companies to large multinationals in a broad range of industries as well as numerous governmental agencies.

RESEARCH STRATEGY

Despite an exhaustive search, we were unable to find the total amount invested of the three biggest investors in Freenome.

We first looked for precompiled information regarding the total amount invested of RA Capital Management, Polaris Partners and Andreessen Horowitz in Freenome. We searched techcrunch.com, Prnewswire, Finance Yahoo, etc. We found information about the company, the types of company they invest in, and their recent investment made. We found no information about the total amount they invested in Freenome.

Next, we searched different databases such as Pitchbook, etc. that provides funding analysis of Freenome. We were hoping to gather data points to triangulate the total amount invested by RA Capital Management, Polaris Partners, and Andreessen Horowitz in Freenome. However, we only found the number of funding rounds of Freenome which was 5 among which 4 was disclosed. Upon checking each funding round, the only information available was the lead investors of each funding round.

Subsequently, we searched each of the biggest investors profile on Crunchbase. This time, we focused on the investors' profile rather than Freenome’s profile. Since we were able to identify that RA Capital Management, Polaris Partners, and Andreessen Horowitz LLC are the leading investors of Freenome, we exhaustively checked each profile of each investor on Crunchbase since this database provides funding analysis or funding amount. However, we only found a list of companies each investor had invested in. A detailed analysis of each investor is available only for a premium account.

Lastly, we attempted to triangulate the request by finding the estimated total amount invested by the three biggest investors in Freenome. To get the estimated total amount, we first gathered the list of all the investors in each funding round. We then tried to get the amount invested by other investors such as Perceptive Advisors, Roche Venture Fund, Kaiser Permanente Ventures, GV (formerly Google Ventures), Data Collective Venture Capital, Section 32, Verily Life Sciences, etc. in Freenome. We searched Businesswire, Finsmes, CNBC, etc. But, nothing significant turned up.
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Sources

Quotes
  • "The round, which brought total financing to $238m to date, was led by RA Capital Management and Polaris Partners, which were joined by other new investors including Perceptive Advisors, funds and accounts advised by T. Rowe Price Associates, Inc., Roche Venture Fund, Kaiser Permanente Ventures, and the American Cancer Society’s BrightEdge Ventures and existing investors Andreessen Horowitz, GV (formerly Google Ventures), Data Collective Venture Capital, Section 32, and Verily Life Sciences (a subsidiary of Alphabet focused on life sciences and healthcare)."
Quotes
  • "Freenome, a two-year-old liquid biopsy diagnosis platform that detects the cell-free DNA sequencing of cancer, has raised a huge Series A round — $65 million — led by Andreessen Horowitz, which also led the company’s $5.5 million seed round less than a year ago."
Quotes
  • "Freenome, a year-old liquid biopsy diagnosis platform that detects the cell-free DNA sequencing of cancer, has landed $5.5 million in seed funding led by Andreessen Horowitz, with participation from Founders Fund, Data Collective, and Third Kind Venture Capital."