Atlanta startups raised at least $139.7 million in the month of November. Atlanta also gained two new capital sources — a $51 million private equity firm and a $30 million venture capital firm.
November brought in a relatively low amount of capital for local startups, which could be because of the holiday season. The most lucrative months for startups were January and April, where they raised more than $850 million and $725 million, respectively.
Whereas October brought mostly early-stage rounds, November didn't have a defining trend to the investments. A few of the startups declined to give financial details about their rounds.
The highest raise was from Reibus, a Sandy Springs-based marketplace for global industrial materials, such as steel and aluminum. That investment puts the company on its way to a $1 billion valuation and international expansion.
Here’s a rundown of the month’s top funding deals. As always, subscribe to The Beat newsletter and get these deals in your inbox as they happen.
NuBrakes raises $9M
Mobile repair startup NuBrakes has raised $9 million about a year after opening its second headquarters in Atlanta. The Series A round was led by Canvas Ventures, with participation from existing investors Atlanta-based Automotive Ventures, Contrary Capital and Bling Capital. Austin-based NuBrakes opened in Atlanta last fall, putting its office in Roam's Buckhead coworking space. NuBrakes services launched locally at the beginning of this year. Read more.
Reibus raises $75M
Reibus, a Sandy Springs-based supply chain tech company, raised $75 million led by SoftBank Vision Fund 2. The round brings Reibus' total investments to $100 million and its valuation to $750 million. Canaan Partners, Nosara Capital, Battery Ventures, Bowery Capital, Initialized Capital and FJ Labs also back the company. Reibus was founded in 2018 as an independent marketplace to improve the supply chain of global industrial materials, such as steel and aluminum. The company plans to expand its marketplace and mobile tools, invest in its European team and accelerate product development with the round.
The Desire Co. raises $8M
The Desire Co., formerly known as Desirelist Inc., produces expert reviews on products to help shoppers. Make better purchases and decrease returns, combatting fake product reviews. Founded in 2019 by husband-wife duo Eric and Judith Sheinkop, the startup raised an $8 million Series A round. Valor Equity Partners and Cleveland Avenue LLC are investors. The funding will support new retailer partnerships and a Chicago studio to increase production capabilities. The Fire Aware honoree has raised $14 million in total investments and says its valuation is $78 million.
FilmHedge secures new seed investment
Savannah College of Art and Design's SCADpro Fund invested in Atlanta-based financial technology startup FilmHedge. FilmHedge is a lending software geared toward production companies looking to finance movie and TV projects. The SCADpro Fund invests in ventures from SCAD alumni and offers $100,000 to early-stage entrepreneurs. FilmHedge CEO Jon Gosier attended SCAD for sound design before becoming a music supervisor at Tyler Perry Studios. The investment kicks off FilmHedge's $5 million seed round. The startup, an Atlanta Inno Fire Award honoree, closed its $2 million pre-seed round earlier this year.
Intradiem receives $35M debt facility
Alpharetta-based call center management startup Intradiem received $35 million of debt financing from CIBC Innovation Banking. Intradiem has an AI-powered intelligent automation platform to help customer service teams more efficiently manage their calls and operations. The company will use the financing to accelerate product innovation, including in machine learning. CIBC Innovation Banking is headquartered in Toronto and has an office in Atlanta. The firm recently provided $50 million debt financing to marketing tech startup Terminus.
DefenseStorm raises $5M
DefenseStorm, an Alpharetta cybersecurity startup, raised $5 million from Curql Fund. Curql Collective, a venture capital firm for financial technology, invested in the startup because of its focus on security solutions for credit unions. DefenseStorm plans to use the funding to build out its CyberFraud and other product offerings. The round brings the startup's total investments to $52 million. Atlanta's TTV Capital also backs the startup, which started in Seattle before moving to Alpharetta.
Sora Schools raises $18M
Sora Schools Inc., a project-based high school founded by three Georgia Tech graduates, is an alternative online option to traditional schooling. It allows students to explore their individual interests in a college-like environment. Its first class in 2019 was seven students. Now, almost 150 students are in Sora Schools. The founders raised $18 million to expand the schools and its software, eventually hoping to scale globally. Investors include Hemant Taneja of General Catalyst, Rebecca Kaden of Union Square Ventures and Gokul Rajaram of Firebolt Ventures. Michael Lynton, chairman of Snap and former CEO of Sony Pictures Entertainment, is joining the schools’ board. The raise brings the total funding to $21.8 million. Read more.
Trella Health receives investment
Trella Health, an Atlanta healthcare data analytics startup, received a "significant" investment led by Cressey & Company LP, according to a Nov. 16 news release. Atlanta's Panoramic Ventures also participated. Trella will use the investment to invest in its product to support more data capabilities for healthcare providers so they can provide transparent performance results. Founded in 2015, the company says it has doubled its annual recurring revenue and increased its team by 40% since the beginning of 2020. Trella plans to double in size by the end of 2022 and is hiring in its Atlanta and Philadelphia offices.
NFT startup MomentRanks raises $4.2M
Atlanta startup MomentRanks Inc. has raised $4.2 million to expand its NFT analysis and portfolio platform. The raise comes less than a year after MomentRanks was founded and a few months after its first, $1.7 million round. New York-based Acrylic, an early-stage venture firm focused on crypto, led the round. Coinbase Ventures, the investing arm of crypto trading site Coinbase, also participated. Existing investors, which include Dapper Labs, also participated, MomentRanks CEO Danny Adkins said. Read more.
PadSplit affordable housing startup raises $20.5M
Atlanta affordable housing startup PadSplit Inc. raised a $20.5 million round. PadSplit converts underutilized single-family homes or apartments into shared worker housing to use the existing housing stock to increase affordable options. The startup is backed by Core Innovation Capital, Impact Engine, Citi, Mark Cuban Companies, Overline and Cox Enterprises. PadSplit raised $10 million to expand into other cities in August 2020. The public benefit corporation was the fastest-growing company in the residential real estate category of Atlanta Business Chronicle’s Pacesetter Awards with a 179% year-over-year revenue growth rate. Read more.
Venture capital and private equity
Atlanta’s new private equity firm closes $51M fund
New Atlanta private equity firm Garden City is gearing up for the “silver tsunami” of retiring business owners and planning new software innovations. Former technology executive Michael Arrieta founded Garden City and recently closed its first, $51 million fund to buy and hold small- to mid-sized businesses owned by the Baby Boomer generation, a group near retirement age. By holding those companies, Arrieta plans to innovate new software that could make their industries’ operations more efficient. Garden City plans to improve their profits through investing in technology and company culture and connecting them with a network of advisors, he said. Read more.
Venture capital firm raising third fund
New early-stage venture capital firm Venture 53 launched in Atlanta and Richmond, Va., to invest in logistics and supply chain innovation. Venture 53 launched during the COVID-19 pandemic last year to make the logistics industry more efficient. The firm is in the process of raising its third fund, targeting $30 million, according to a spokesperson. Its first fund was $3 million, and its second was $10 million. The firm is dual headquartered where its co-founders Pat Martin and Dan White live. Logistics technology has enjoyed a spike in investments during the e-commerce explosion and supply chain delays of the past year. Atlanta is poised to benefit from this influx of capital. Read more.
