It's time to look back on the biggest venture capital raises for Atlanta startups in 2022.
These companies were able to achieve sizable raises just before an investor pullback led to a shrinking of venture capital. That shift in the market caused companies to cut costs rather than continue expanding. Oftentimes, that also meant layoffs.
Each of the top five largest raises in Atlanta this year came no later than May, which is when a wave of Atlanta startup layoffs started. PitchBook and National Venture Capital Association's latest report showed that local startups saw a 28% decrease of venture funding in the third quarter.
Here are the top five largest raises for Atlanta startups in 2022:
Atlanta crime surveillance startup Flock Safety raised $150 million in February about six months after its previous round. The round came during a time when violent crime was rising across the United States. Flock Safety is pledging to lower crime rates by 25% in the next three years. This funding aimed to help achieve that goal, Flock Safety CEO Garrett Langley said in a statement.
Cloud-based supply chain company Stord raised $120 million in May as the company planned for 1,000 employees. Already an Atlanta unicorn, the round brought Stord's valuation to $1.3 billion. The raise came as supply chain technology investments reached record highs after the Covid-19 pandemic increased demand for e-commerce.
Atlanta robotics company GreyOrange announced plans in May to create 300 jobs globally as supply chain delays continues to affect the economy. That came along with a $120 million raise. Investments into Atlanta’s supply chain innovation sector increased due to the effects of the pandemic. Demand for e-commerce products soared. At the same time, labor shortages caused supply chain backlogs, contributing to inflation spikes. Retail enterprises turned to supply chain technology — from warehouse automation to updated software services — to cope with those challenges.
Atlanta real estate crowdfunding company Groundfloor landed $118 million in February to accelerate growth. The latest round was led by $100 million from real estate firm Medipower, which plans to invest in real estate loans Groundfloor offers. It plans to invest an additional $220 million in the second year. The infusion also included series B funding of $18 million, including $5.8 million in equity from Medipower, $7.2 million in equity from over 3,600 investors through SeedInvest and $5 million in convertible debt.
Hermeus, an Atlanta-based startup that is creating hypersonic aircraft, received $100 million in a Series B funding round in March to accelerate the development of two new prototypes. It's aiming to create a passenger aircraft capable of Mach 5 speed. The investment was led by Open AI CEO Sam Altman in addition to new investors Founder's Fund and strategic investor to U.S. Intelligence agencies In-Q-Tel. The funds are used to complete the development of Hermeus' first aircraft Quarterhorse, which will be used to ensure their aircraft can sustain Mach 5 speed.
