Good day. Venture capitalists are betting that technology from startup Satellite Biosciences Inc. can help patients with diseased organs who will eventually need a transplant to survive.

Because of a shortage of donor organs, 17 people die each day while waiting for a transplant, according to the federal Health Resources and Services Administration.

Cambridge, Mass.-based Satellite Bio, which has raised $110 million in financing, is developing therapeutics designed to assist distressed organs so patients won’t need to resort to a donated organ, Chief Executive Dave Lennon said.

“There’s potential to intervene much earlier,” he said.

Satellite’s therapies will be implants, delivered through minimally invasive surgery, containing cells that perform functions to support an organ, Dr. Lennon said. Once in the body, blood vessels grow into it so that the implanted tissue integrates with the body. The company says its implants could be used to repair, restore or replace organ or tissue functions.

For example, diseased livers can lose their ability to filter toxins from blood effectively. A Satellite treatment may be able to provide this type of functional support, he said.

Satellite, whose investors include aMoon Growth, expects that its initial product will be a liver therapeutic, Dr. Lennon said. Satellite aims to launch its initial clinical trials in the next two years, he said.

And now on to the news ...

Alleged Covid fraud schemes. Federal prosecutors have charged about 20 people in the past two weeks with allegedly engaging in various fraud schemes related to the Covid-19 pandemic that amounted to about $150 million in improper government claims, around $20 million of which have been paid, officials said. The Justice Department has stepped up efforts to uncover theft from programs that were pumping billions of dollars into the healthcare system after the outbreak of the pandemic in 2020, The Wall Street Journal reports. 

A KKR & Co. Inc.-led consortium offered to buy Australian private-hospital operator Ramsay Health Care Ltd. for roughly $14.9 billion, raising the private-equity firm’s bet on growing demand for healthcare, WSJ reports. Ramsay on Wednesday said it had received a nonbinding, indicative proposal from a consortium of financial investors led by New York-based KKR to acquire the company for 88 Australian dollars a share, equivalent to $65, in cash. The stock closed Tuesday at A$64.39. Private-equity executives have highlighted healthcare as a fast-growing area of the economy with room for consolidation.

The risks marijuana can pose to people—and even pets—near users is getting more attention from researchers, as consumption rises along with legalization efforts in parts of North America, WSJ reports. Bong smoke contains tiny pollutants that can linger indoors for up to 12 hours, one study showed. Secondhand marijuana smoke may harm people outdoors or children in adjacent rooms, other research has suggested. And the legalization of marijuana in parts of North America has coincided with an increase of cannabis poisonings in dogs and other pets, a study published on Wednesday in the scientific journal PLOS ONE reported.

Digital freight operator Convoy Inc. raised $160 million in new funding that values the load-matching business at $3.8 billion and helps position it for a potential public stock offering, WSJ reports. Convoy said in announcing the backing Thursday that it substantially completed the Series E funding round at the end of the fourth quarter and also secured a $150 million line of credit from JPMorgan Chase & Co. and a $100 million loan from specialty finance company Hercules Capital Inc. at the end of last month. Investment management firm Baillie Gifford & Co. and funds and accounts advised by T. Rowe Price Associates Inc. led the funding round.

People

B Capital Group, which focuses on enterprise software, financial services and healthcare investing, hired Elizabeth Wahab as general partner and global chief operating officer, and Cecilia Kwan as partner and chief financial officer. The firm also appointed Ted Hill as chief administrative officer, while he will continue serving as general partner and COO of the Americas. Additionally, Mark Cho was promoted to partner. Ms. Wahab joins B Capital from Cornell Capital. Ms. Kwan was previously at Vista Equity Partners.

ImmPACT Bio USA Inc., a developer of chimeric antigen receptor T-cell therapies for cancer patients who have exhausted their treatment options, appointed Venkata (Venkat) P. Yepuri as chief operating officer. He was most recently vice president, global business solutions and chief procurement officer at Amgen. In January, ImmPACT Bio said it raised $111 million from venBio Partners, Foresite Capital, Decheng Capital and others.

Ambys Medicines, a developer of cell-replacement therapies for patients with liver failure, appointed Samira Shaikhly as chief human resources officer and John McKeon as vice president of finance. Before joining Ambys, Ms. Shaikhly was at Gilead Sciences. Mr. McKeon was previously at Allakos. South San Francisco, Calif.-based Ambys Medicines is backed by investors including Third Rock Ventures, Smilegate Investment and Alexandria Venture Investments.

Exits

Blackrock Neurotech, provider of an implantable brain-computer interface technology, acquired spatial computing software developer MindX for an undisclosed amount. Last year, Salt Lake City-based Blackrock Neurotech landed a $10 million investment from re.Mind Capital, Peter Thiel and others.

Tessera Therapeutics, a Somerville, Mass.-based startup with a new approach in genetic medicine known as gene writing, secured more than $300 million in Series C funding. Investors included Alaska Permanent Fund, Altitude Life Science Ventures, Artis Ventures, Cormorant Asset Management, Flagship Pioneering, Hanwha Impact Partners, Longevity Vision Fund, March Capital, SoftBank Vision Fund 2, funds and accounts advised by T. Rowe Price Associates Inc. and others.

Unlearn.AI Inc., a San Francisco-based startup that creates digital twins of patients in clinical trials to enable smaller, faster studies, closed a $50 million Series B round. Insight Partners led the funding, with Managing Director Dylan Morris joining the company’s board. Additional investors included Radical Ventures, 8VC, DCVC, DCVC Bio and Mubadala Capital Ventures.

Levels, a New York-based startup offering users real-time feedback on how food affects their health, landed $38 million in Series A funding at a $300 million valuation. Investors in the company include Andreessen Horowitz, Trust Ventures, Shrug Capital and Basecamp Fund.

Carlsmed Inc., a Carlsbad, Calif.-based startup whose devices personalize the surgical treatment of adults with spinal malalignment, completed a $30 million Series B round. B Capital Group led the funding, which included participation from U.S. Venture Partners, The Vertical Group, Cove Fund and Wavemaker Three-Sixty Health. Robert Mittendorff, general partner and head of healthcare at B Capital Group, joined the Carlsmed board.

Loop, an Indian healthcare and insurance startup, raised $25 million in Series B funding. Co-lead investors General Catalyst and Elevation Capital were joined by Khosla Ventures, Optum Ventures and Sierra Ventures in the round.

Nue Life Health, a Miami-based mental health platform that offers ketamine therapy, an interactive companion app and virtual aftercare programs, picked up $23 million in equity and debt funding. Obvious Ventures led the equity portion, with debt provided by Western Technology Investment.

Free Market Health, a Pittsburgh-based startup whose technology streamlines the specialty pharmacy ecosystem, grabbed a $13.5 million Series A round. Led by Alta Partners, the investment saw participation from Highmark Ventures and 653 Investment Partners.

Soter Analytics, an ergonomic safety platform to prevent back and shoulder injuries in the workplace, fetched a $12 million Series A investment. AV8 Ventures led the round, which included additional support from OTB Ventures, btov Industrial Technologies Fund and Verve Ventures. The company has offices in London and Australia.

Pathware Inc., a Denver-based digital pathology startup, nabbed $7 million in Series A funding. Co-lead investors UnityPoint Health Ventures and Level Eight Ventures were joined by MVolution Partners and Solas BioVentures in the round. In addition to the investment, Pathware appointed TJ Meyer to the role of chief executive. He was previously at Veran Medical Technologies.

Revea, a San Francisco-based precision skincare startup, fetched a $6 million seed II investment led by Alpha Edison.

Briya, a healthcare data exchange network, emerged from stealth with a $5.5 million seed investment led by Amiti Ventures. The company has offices in Tel Aviv, Nashville, Tenn., and New York.

• Johnson & Johnson backs off Covid vaccine sales guidance, citing supply surplus
   
• Justice Department to appeal court ruling invalidating public transportation mask mandate
   
• BA.2 proves the pandemic isn’t over, but people are over it
   
• At least 36 bald eagles have died in bird-flu outbreak
   
• Contaminated-baby-formula investigation turns murky

• What counts as a breakthrough? 8 insights on the FDA’s approach to medical devices (STAT News)
   
• Heartbeat-tracking technology raises patients’ and doctors’ worries (Kaiser Health News)

This newsletter was compiled by Matthew Strozier and Zachary Cole.

WSJ Pro Venture Capital is a premium service of The Wall Street Journal. We cover venture capital and the global startup ecosystem. Share your tips, comments and questions: [email protected]

The Team: Matthew Strozier, Yuliya Chernova, Brian Gormley and Marc Vartabedian.

Follow us on Twitter: @wsjvc, @ychernova, @BrianPGormley, @marcvarta.