The latest data might show that local funding deals have been on the decline since the back half of 2022, but deals are still going down in the Texas capital. Last week, Austin Business Journal reported on three local companies that reported raising $20 million.
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• A growing canned cocktail startup is raking in fresh funding. Ranch Hand Supply Co. LLC, which does business as Ranch Rider Spirits Co., on Jan. 11 reported an $11.4 million funding round to the SEC. The money was raised from 69 investors, according to the filing. The funds come from a convertible note and new equity, said co-founder Quentin Cantu. Ranch Rider has raised about $15 million to date, he added, and is hoping to raise another $1 million or $2 million through a Wefunder campaign set to launch soon.
Ranch Rider generated nearly $4 million in revenue in 2020. It previously told ABJ it intended to be in 10,000 retail outlets by the end of 2021. Cantu said Ranch Rider had 25,000 points of distribution by the end of 2022, and that revenue grew by 50% in 2021. Keep reading to learn more about Ranch Rider and how it differentiates.
• Austin web3 gaming startup Million on Mars Inc. on Jan. 11 reported raising nearly $3.5 million in new equity funding from 29 investors. The company was founded in 2020 by Keri Waters, Erik Bethke and Joel Boutros. Waters is a former vice president at Resideo who recently co-founded Rainwater Tech. Bethke is the former founder and CEO of Bee Cave Games and was a GM at Zynga. Boutros is a former architect at Resideo and former co-founder at Bouy Labs Inc.
The company's namesake product, Million on Mars, is a wax blockchain game that lets players build rovers, construct buildings and explore the planet with other players to create an otherworldly settlement. The company has a team of 24-plus people, including developers, artists and community managers.
• As others in the startup world brace for recession, Austin-based Howdy sees opportunity. The remote work placement startup Jan. 10 announced it has added $5 million to a $13 million series A funding round raised in August 2022, raising its valuation by more than 20% in the process. Howdy, which represents a rebranded name for the company, has now raised a total of $21 million. It previously went by Astro, and before that, Austin Software Inc. It now operates legally as Howdy.com Inc.
The company works by hiring high-skilled remote tech workers in Latin American and pairing them with U.S.-based tech firms. Its customers include Austin-based firms such as Workrise, Ojo Labs, Capital Factory and Spot Insurance. Howdy's continued growth offers an example of how nimble startups can bring value into the tech ecosystem, even as companies are reducing headcount and bracing for a potential recession.
For more local deals, check out another recent funding wrap. And subscribe to Austin Business Journal for startup resources such as lists of venture capital and private equity firms, incubators and accelerators, angel investors and coworking providers.
