Form D Friday is an Atlanta Inno feature highlighting regulatory filings and tips about Atlanta companies raising capital. Form D reports are a type of U.S. Securities and Exchange Commission form used to file a notice of exempt offerings of securities. The SEC requires companies file the notice within 15 days after the first sale of securities in the offering. These forms don’t include a lot of details but can provide clues as to what investors and business owners are planning. If you have any tips or comments about new Atlanta fundraises, email Zach Armstrong at zarmstrong@bizjournals.com.
Although venture funding has shrunk from last year, the capital flow into Atlanta startups appears to be stronger this quarter than last.
Between Dec. 9 and Dec. 16, Atlanta-based startups saw at least $77 million in venture funding. That number just barely trails the $80.9 million Atlanta companies raised between Nov. 25 and Dec. 2 and tops the $55 million raised between Dec. 2 and Dec. 9.
Those weekly raises are larger than earlier this fall. Atlanta startups received only $2.6 million between Nov. 11 and Nov. 18. Between Oct. 28 and Nov. 4, Atlanta startups raised at least $10.5 million.
Investors have traded a focus on growth for profitability, leading company valuations to decrease as far as 70%. Businesses whose valuation decreases from their prior capital raise don’t tend to seek outside funding. Fears of recession, rising interest rates and high inflation has also made investors more cautious.
PitchBook and National Venture Capital Association's latest report showed that local startups saw a 28% decrease of venture funding in the third quarter, prompting layoffs, cuts to product development and marketing.
Here are the venture deals you might've missed this week:
- MessageGears, an Atlanta-based customer engagement startup for consumer brands, raised $62 million, a Dec. 12 press release stated. The raise was led by Long Ridge Equity Partners. Argentum Group and local firm Atlanta Ventures also participated. The company has raised $8 million in funding since its founding in 2011, the release said. MessageGears has helped businesses such as Expedia, OpenTable and T-Mobile with their marketing through data. The last time an Atlanta company raised a comparable amount was in October, when bus marketplace startup CharterUP raised a $60 million Series A round.
- EnviroSpark Energy Solutions Inc. raised $10 million, 10 months after raising its $5 million Series A funding. Funds from the investment will be used to expand the company's charger network and quadruple its employees. Investors include Frank Blake, The Home Depot Inc.’s (NYSE: HD) former chairman and CEO; Chick-fil-A Inc.’s president and chief operating officer Tim Tassopoulos; Paul Bowers, Georgia Power’s former chairman, president and CEO; Dealer.com’s founder and former CEO Mark Bonfigli; and Dave Stockert, Post Properties’ former president and CEO. EnviroSpark designs and installs EV charging stations for real estate properties and governments with the goal of increasing accessibility.
- Pindrop Security Inc., a cybersecurity startup with hundreds of millions in venture funding, has raised almost $5 million, according to a filing with the U.S. Securities and Exchange Commission. Individuals listed in the filing share names with partners and CEOs of California-based venture firms including JC2 Ventures, Andreessen Horowitz and IVP. The company was unable to be reached for comment. It was founded by CEO Vijay Balasubramaniyan and is backed by prominent serial entrepreneur and investor Paul Judge.
- NSB Marketing Inc., a social media marketing company that focuses on small businesses, has raised $250,000 in a $1 million raise, according to an SEC filing. The company’s services include measuring and managing brand assets, strategic planning, agency briefings and agency search and selection, according to its LinkedIn. The company’s president is Allen Nance, according to the filing.
- Basis Medical LLC, a medical device company based in Druid Hills, raised $120,000 of a $500,000 round, according to an SEC filing. The company has been led by CEO David Martin since 2016, according to LinkedIn. The company has raised at least $890,000 to date, according to previous SEC filings.
