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.
Venture capital raises for Atlanta-based companies saw an uptick in the past week, though mostly because of two deals.
Between Nov. 25 and Dec. 2, Atlanta-based startups received at least $80.9 million across four venture deals. The deals are according to filings with the U.S. Securities and Exchange Commission and Atlanta Inno reporting.
The figure is substantially larger than what Atlanta startups have been seeing on a weekly basis as an investor pullback has led to venture capital subsiding. Comparatively, Atlanta startups received at least $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:
- Greenwood Inc., a digital banking platform for Black and Latino individuals and business owners, received $45 million following two acquisitions. The round was led by investment platform Pendulum, that focuses on founders of color. The company was founded in 2020 by Michael “Killer Mike” Render, Ambassador Andrew Young and local entrepreneurs Ryan Glover and Paul Judge. It aims to close the racial wealth gap by providing tools and education to empower minority communities.
- Co-working and warehousing startup Saltbox Inc. raised a $35 million Series B round. Funds will be used to open at least three facilities located in Miami, Minneapolis and Phoenix. Two of which could open by the end of this year. The company will also use the funds to invest in software. The round brings Saltbox's total venture funding to $56 million, according to the release.
- Zencape Inc., a software company that focuses on aiding women’s health, has raised $866,000 as it tries to raise $1.4 million, according to an SEC filing. The company provides an app that gives women access to pelvic pain specialists, connection to people with similar conditions and guidance on pain relief techniques. The company is led by founder and CEO Abi Sundaram, according to LinkedIn. Sundaram is also the founder of San Francisco-based On Deck, a platform meant to connect and strengthen entrepreneurs.
- Dyversifi Inc. has raised $25,000 as it aims to raise $1 million, according to an SEC filing. The company is led by CEO Tobenna Egbuna, according to the filing. Little is known about the company.
