Financial deals, mergers and acquisitions in the tech ecosystem are mentioned daily in the Atlanta Inno Beat newsletter, along with insights on how personnel moves may impact a startup’s future. Sign up for the Beat to get it each day in your inbox.
Check out the most important mergers, acquisitions, partnerships and investments from Atlanta technology companies from August 2019. Did we miss a deal? Let me know at mhogan@americaninno.com.
ATDC, the state incubator, started a new initiative with the Community Bankers Association of Georgia that will identify, develop and refine fintech solutions for community banks. With this partnership, CBA members will actively participate with ATDC in the piloting and testing of these new initiatives as well as provide financial support to entrepreneurs across the state. The objective is to bring forward new ideas, issues and concerns regarding the technology needs at community banks, according to a news release.
Algo Capital, an Atlanta-based financial institution focused on accelerating access, adoption and liquidity of the Algo, the native digital currency of the Algorand blockchain, closed its Algo VC Fund at $200 million. The fund surpassed the firm’s original goal of $100 million and will invest in businesses that are building on the Algorand technology platform. In addition to direct investments, Algo Capital plans to invest in early-stage startups through partnerships with venture studios and accelerators in Atlanta and around the world.
Georgia Tech's research, economic development and other sponsored activities raised more than a billion dollars in new grants, contracts and other awards during the fiscal year. The funding came from federal government agencies, companies, private organizations, the state of Georgia and other sources.
The Atlanta Tech Village, the fourth largest incubator in the country, reached a major funding milestone. Since opening in 2012, the incubator’s startups have raised more than $893 million in funding. The record funding for ATV came from from venture capital funding raised by companies that previously worked or that currently work in at the Village. Some of those past companies include big tech names, such as Salesloft, Bitpay, Cooleaf, Insightpool, Motivo, Terminus and GreenPrint. Programs at the Village include its pre-accelerator It Takes a Village, its eight week free Startup Summer School and Women + Tech program focused on empowering women in the industry.
Stratix, an Atlanta-based enterprise mobility solution provider, announced a partnership with Apple. According to a news release, Stratix will exclusively provide support to its enterprise clients on Apple devices, making the provider an authorized Apple Value-Added Reseller and Apple Authorized Service provider.
Stack Sports, a global provider of sports technology, acquired Affinity Sports and Blue Sombrero from DICK’S Sporting Goods. Blue Sombrero is an Atlanta-based website provider for registration and league management tools for youth sports teams. PE Hub Network reports the price of both acquisitions was $45 million. Stack Sports will combine Affinity Sports and Blue Sombrero under one organization, according to a news release.
Kobiton, an Atlanta-based mobile testing platform, raised a $5.2 million Series A round, led by BIP Capital. Other investors included previous seed investors KMS Technology and Kinetic Ventures, in addition to Jon Hallett, BetterCloud executive chairman; Ken Walters, former Infor COO; and Kevin Lee, the CEO of Kobiton. The funding will primarily be used for hiring sales and marketing positions in Atlanta, Lee told Atlanta Inno. Lee said he also anticipates much of funding will be used to “continually innovate and increase [Kobiton’s] portfolio of intellectual property, in addition to scaling our go-to-market initiatives.”
Atlanta-based UPS invested in self-driving truck initiatives through the shipping giant’s VC firm, UPS Ventures. The VC firm invested in autonomous vehicle startup TruSimple, which is testing self-driving tractor-trailers. According to the AJC, UPS wants to better understand what would be required for autonomous trucking in its network.
Greenlight Financial Technology, an Atlanta fintech firm that supplies smart debit cards to kids, raised $39.1 million of a planned $54.1 million round from 17 investors, according to an SEC filing. In July of 2018, the startup announced it had exceeded its original $16 million Series A round and raised $20 million. Following the investment, the company was valued at about $50 million. If the startup is successful in this funding round, Greenlight will have raised a total of $81.6 million.
EspriGas, an Atlanta-based technology and data-driven medical and industrial gas company, received an investment from Kaltroco, a private investment company. According to a press release, the new partnership will support the company’s growth initiatives in the $130 billion global industrial gas market. CEO Mike Walsh will remain a significant shareholder in EspriGas alongside Kaltroco. Terms of the deal were not disclosed.
Bitcoin Depot, an Atlanta-based cryptocurrency ATM network, acquired its Texas-based competitor DFW Bitcoin. Terms of the deal were not disclosed. Bitcoin Depot is a large operator of multi-cryptocurrency ATMs which allow users to buy and sell Bitcoin, Litecoin, Ethereum and Bitcoin Cash instantly at hundreds of locations across the country. The network currently operates nearly 300 Bitcoin ATMs in the nation and expects to have over 1,000 Bitcoin ATMs deployed by the end of 2020.
Aucnet Inc., an auction platform for businesses-to-business sales worldwide, made a capital investment in Phobio, LLC, an Atlanta-based provider of an omni-channel platform for device trade-in. Phobio’s platform focused on the development and operation of trade-in programs that enable the buyback of smartphones, tablets, computers and wearables with software and services. Financial terms of the deal were not disclosed.
Endavo Media and Communications, Inc., an Atlanta-based OTT video distribution software company, was acquired by Ozzie Areu, the founder and CEO of Areu Bros. Studios in Atlanta. Areu is a former president of Tyler Perry Studios in Atlanta. He said Endavo provides a “revolutionary platform” for video content distribution, and has immediate plans to develop multiple initiatives in the areas of content development and distribution. Terms of the deal were not disclosed, according to the Atlanta Business Chronicle.
Flourish, an Atlanta-based supply chain management startup that helps cannabis companies monitor logistics, raised $2.1 million in a seed round led by 7thirty Opportunity Fund. The funding will primarily be used for R&D, sales and marketing and hiring across the company, according to founder and CEO Colton Griffin. The company has hired at least seven people since closing the round, and consists of 25-30 employees in seven states, including Georgia, California and Oregon.
Switchyards Social Club, a B2C incubator and coworking space company in Atlanta, raised $600,000 in funds. The seed raise is part of a new initiative to expand Switchyards in Atlanta. “Think of it as an All-City Club. A club that gives you access to our city’s places, people, and moments. The original All-City Club. The first of its kind. Right here in Atlanta,” Michael Tavani, Switchyards founder, wrote in a Medium post. In addition to the raise, Switchyards announced a few new hires.
