(Bloomberg) -- Fertility startup Kindbody is considering selling itself after a funding round fell through earlier this year, and it’s seeking to raise $10 million to sustain operations in the interim, according to a document reviewed by Bloomberg and people with knowledge of the matter.
Kindbody has fielded takeover proposals from outside buyers, said the people, who asked not to be identified discussing private conversations. Before any potential sale, the startup is soliciting bridge financing from new and existing investors, according to the people and the document.
Kindbody spokeswoman Margaret Ryan said in a statement that Bloomberg’s reporting for this story was “categorically false.”
New York-based Kindbody had sought to raise a larger funding round in August, people with knowledge of the matter said at the time. The company had been aiming to raise $30 million to $50 million, but the deal failed to close in September as planned, with some investors expressing concern about the company’s finances, according to people familiar with the conversations.
Founded in 2018, Kindbody is one of the largest fertility chains in the US, offering in-vitro fertilization and other services, such as egg freezing and storage. The company was valued at $1.8 billion in 2023. Since then, its valuation has fallen.
In the attempted funding round this summer, the company was in talks for a pre-money valuation of $600 million, according to a letter sent to potential investors. More recently, its estimated value has dropped to $400 million, according to people familiar with the negotiations.
This year, the startup has closed multiple clinics according to Kindbody’s website and emails sent to patients and viewed by Bloomberg. At the end of 2023, it cut its revenue forecast and tried to shore up funding to stem a cash burn that it has described to investors as “material,” Bloomberg reported.
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