This is our roundup of Chicago tech and startup companies that received venture capital investments during the last month. If we missed one, let us know at info@chicagoinno.com.
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Chicago tech and startup companies raised at least $68 million in venture capital throughout the month of May, according to data compiled by Chicago Inno.
May’s fundings were led by Higi, which landed $30 million, and Tock, which raised $10 million.
Local venture capital activity was similar to the month of April, when Chicago tech companies raised about $62 million. Venture capital activity in Chicago has been lower than usual since the coronavirus pandemic began. For comparison, local startup and tech companies raised about $218 million in March.
In the latest Venture Monitor report from Pitchbook and the National Venture Capital Association, Chicago VC funding dropped slightly in Q1. Chicago startups raised $351 million in the first quarter of 2020, which was down from $483 million a year prior and $365 million in Q4 of 2019. Q2 venture capital activity is expected to be even lower, reflecting a slowdown in the economy due to Covid-19.
Below are seven Chicago tech and startup companies that raised money in May.
Azul 3D: The 3D printing company based in Skokie raised $8 million as it works to print personal protective equipment amid the coronavirus pandemic. Azul 3D is printing personal protective equipment like medical face shields. Specifically, the startup prints the headbands that connect to sterilized plastic. The company says it can print 1,000 face shields per day by running the machine 24/7.
Black Buffalo: The startup raised $9.75 million from Pendyne Capital, Watchfire Ventures and Open Pantry Food Marts. Founded in 2015, Black Buffalo has created a smokeless tobacco alternative that has the same look, feel, smell and experience as traditional dipping products like Copenhagen or Skoal, without using tobacco leaves or stems, co-founder Jeffery David says. The product comes in both long-cut and pouch varieties and contains pharmaceutical-grade nicotine.
Higi: The startup raised a $30 million round led by Babylon, a U.K.-based venture-backed digital health company that’s valued at $2 billion. Higi, founded in 2012, creates self-screening health stations that measures a person’s blood pressure, pulse, weight, BMI, body composition and hydration for free. Higi operates more than 10,000 kiosks, which are FDA-cleared and located primarily in grocery and drug stores. The company says its machines have been used by 62 million people to date. Higi has raised more than $90 million in total funding, according to Crunchbase.
K4 Mobility: The Chicago startup working to bring internet connection to yachts and other large ships raised $2.3 million in equity funding. The new round follows the $5.15 million it raised in 2019. K4 is led by Michael Small, the former CEO of in-flight WiFi maker Gogo, along with other former Gogo executives Rishi Potdar, Anand Chari and Bryan Lauer.
Rise Gardens: Founded by former Sportsvision CEO Hank Adams, Rise Gardens raised $2.6 million in a seed round led by True Ventures. Investors also include Michael Alter of the Alter Group and owner of the WNBA’s Chicago Sky; Howard Tullman, the former CEO of 1871; and Jai Shekhawat, the founder of Fieldglass. The startup designs in-home and IoT-connected hydroponic systems, devices that grow plants in a reservoir of moving water and organic materials.
TimeDoc Health: The company, a health care startup that creates virtual care management software for hospitals, raised $5.7 million in new funding. The Series A funding round was led by Atlanta-based VC firm Vocap Investment Partners. Founded in 2015 by Will Boeglin, Chris Knoff and John DiCosola, TimeDoc provides health care organizations with software that helps remotely coordinate care for chronically ill patients.
Tock: The startup raised $10 million in new funding led by Valor Siren Ventures, a fund managed by Chicago’s Valor Equity Partners that counts Starbucks among its investors. Tock allows diners to put down a deposit in order to hold a table, essentially putting an end to no-shows for restaurants. But with restaurants across the country closing their dining rooms amid Covid-19, Tock launched Tock to Go, a feature that lets restaurants offer pickup and delivery.
