Funding for Startups in the D.C. Area Reached $50 Million in October

Funding Roundup: D.C.-Area Startups Raised $50M in October

By Kieran McQuilkin - October 31, 2018
Topic: Funding for Startups

October was another quiet month volume-wise for DMV term sheets, with just one high-value deal moving big money into the local startup scene and several around $4 million and $5 million. At least 11 D.C. metro-area startups (including Baltimore) raised a combined $50 million in funding, led by an eight-figure venture round by Bethesda data analytics company Aledade.

The biggest tech funding deal came from D.C.-based sales software company Afiniti, which quietly raised $130 million in a Series D round, valuing it at $1.6 billion and making it the metro area’s newest unicorn. Since it was founded in 2016, it aged out of our startup roundup, but was a notable capital infusion nonetheless.

A few investment groups got in on the action as well, with the opening of a $300 million fund for a District-based venture capital firm and the closing of a Vienna firm’s first outside fund of $250 million.

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Below are the 11 local startups that raised capital in October.

Aledade, a Bethesda-based data analytics software company that helps doctors cut costs on readmissions, raised $23 million in new venture funding. Palo Alto-based Meritech Capital Partners led the round, contributing $15 million. The new money is a continuation of a prior round, and it adds to a $23 million round late last year.

On-demand technology repair company Fixt hauled in $6.5 million in Series A funding. The round was led by San Francisco-based Precursor Ventures and U.S. Cellular, with participation from Naples Technology Ventures and additional existing investors. The Baltimore-based startup previously raised a $1.4 million seed round in early 2016.

Columbia, Md.-based Zentail, which helps small retailers manage their e-commerce operations across websites like Amazon and eBay, raised $5 million. Initialized Capital led the Series A round for the 3-year-old startup, with participation from FundersClub. It has previously raised $1.2 million in seed funding.

Baltimore startup Hunt a Killer, which sells subscription boxes with mystery puzzles is seeking up to $5 million in venture capital to support customer growth and new products. It expects to have 50,000 customers by yearend. Last month, the company also announced a long-term $8 million funding deal from Clearbanc.

UMB-born biotech startup Breethe has raised at least $3.5 million of a $5 million funding round toward its quest to create artificial lungs. It spun out of the university in 2014 and is backed by more than $5 million in previous funding, including a $3 million round reported in December last year.

D.C.-based nonprofit edtech startup CommonLit is continuing its blockbuster growth with a $3.5 million grant from Google. In June this year, CommonLit nabbed $4 million in funding from backers including AT&T, Teach for America, the EPIC Foundation, Arthur Rock Foundation and others.

Bethesda-based cybersecurity startup Syncurity closed a $2 million round of investment. The new funding was led by the Maryland Technological Development Corporation, better known as TEDCO, which has made a variety of startup investments. Syncurity, founded by JP Bourget in 2014, raised an undisclosed seed round in 2014 and $380,000 in 2016.

Byte Back, a nonprofit that offers technology training and job placement to underserved populations in the D.C. area, is expanding its services to Baltimore with a $775,000 grant from TD Bank. The grant came as part of the inaugural TD Ready Challenge, which this year focused on financial security and awarded the same total to 10 organizations in the U.S. and Canada.

D.C.-based voice app creator XAPP Media raised at least $750,000 from seven investors in a maximum $2 million equity round, according to SEC filings. The company has launched and manages over 1,000 apps on Amazon Alexa, Google Assistant and Microsoft’s Catana. It’s no stranger to fundraising, having hauled in $11.3 million in capital since 2014, according to a Crunchbase tally.

Maryland-based AI startup RedShred was awarded a $745,000 Small Business Innovation Research Phase 2 grant from the National Science Foundation. The grant will be provided over 18 months for development and commercialization of its technology, which analyzes and produces summaries of lengthy proposal documents for government contractors, grant researchers and universities. The company previously was awarded a $225,000 Phase 1 SBIR grant in 2016.

David Adler, founder and CEO of event-planning platform BizBash Media, along with his company and family invested over $500,000 in D.C.-based startup Goodshuffle. Goodshuffle launched four years ago and makes a software tool designed for event rental, production and entertainment companies to manage inventory, track sales and streamline operations.

A pair of investment companies made moves in October as well:

D.C. venture capital firm Updata Partners opened a $300 million raise for its latest fund. The fund, which targets later-stage companies and provides growth funding, has invested in several D.C.-area startups, including real estate platform Homesnap and content creation platform Storyblocks. According to its website, the VC firm has raised $750M in committed capital and invested in more than 40 companies.

Vienna-based growth equity firm Aldrich Capital Partners closed on its first outside fund, raking in $256 million. The investment company had previously used a self-funded $50M to invest in several startups, including Cofense, which sold for $400 million this year. Aldrich partners said the fund will be aimed at companies in healthcare IT, fintech and software that are still led by their founders and haven’t yet raised institutional funding.

Source: https://www.americaninno.com/dc/funding-dc/funding-roundup-d-c-area-startups-raised-50m-in-october/