Even as storm clouds appear to be swirling in the venture capital world, Austin companies continue to raise eye-popping rounds.
The latest came from e-commerce software maker SamCart Inc., which on April 7 announced an $82 million series B. SamCart helps businesses sell digital products — such as e-books, online courses and other creative endeavors — directly to consumers. It helps creators design sales pages, process payments and ultimately get customers from the sales cart to the payment screen.
The big round was led by Eldridge Industries LLC, a Connecticut-based investment firm, with money also coming from TTV Capital, Fin VC, the George Kaiser Foundation and eGateway Capital.
SamCart was founded in 2014 and made Austin its headquarters in 2018. It has processed more than $2.2 billion in sales and currently supports more than 30,000 businesses, according to the announcement. The new funds are expected to help SamCart expand its team and add features to its e-commerce platform.
SamCart currently has 95 full-time employees, about 60% of whom are based in Austin. It is currently based out of a WeWork but is planning to move into a permanent space in the next six months — executives aim to find space that can accommodate a remote-first office model, a company spokesperson said.
The Census Bureau of the Department of Commerce estimated that e-commerce sales reached $218.5 billion in the fourth quarter of 2021, up 9.4% year-over-year.
“We are thrilled to partner with this esteemed group of new and existing investors, who share our team’s passion for helping content creators build their businesses and brands,” SamCart co-founder and CEO Brian Moran said in a statement. “Solopreneurs, emerging, and established creators face many obstacles managing diverse channels while scaling their revenues. As the Creator economy expands and revolutionizes more aspects of commerce, we are the trusted brand to provide a dedicated, creator-centric, digital commerce platform that can maximize and monetize creators’ success online.”
The funding round adds to a $10 million series A announced in January 2021.
Among the largest Austin-area raises announced so far in 2022 are a $250 million investment for FlashParking Inc.; a $240 million round from fellow e-commerce software company Cart.com; a $185 million round from 3D homebuilder Icon Technology Inc.; a $150 million series C from telehealth startup Wheel Health Inc.; and a $123 million round from artificial intelligence company SparkCognition Inc.
Yet analysts expect headwinds for venture-backed startups. In a forthcoming Q1 2022 Venture Monitor report, set to be released next week, PitchBook Data analysts explain that war in Ukraine, expected interest rate hikes and public market volatility are creating issues, according to a first look of the report.
“This has catalyzed a marked decline in the number of IPOs, a vital outlet for VC-backed companies and their investors, at a time when the number of unicorns has grown to well over 1,000 globally,” the analysts write.
Even so, nearly 200 U.S. venture capital deals in excess of $100 million were closed in the first quarter, a near-record pace.
Moran said SamCart was bootstrapped for many years before raising venture funding, so it has "never prioritized the highest valuation or capital."
"We've been focused on bringing on investors who can be real partners in the business, bringing meaningful support in our mission to become the e-commerce hub for digital sellers," Moran said in an email.
