Follow the money: North Texas tech firms raised more than $350M in November

See Correction/Clarification at end of article

The amount of capital flowing to North Texas startups and tech firms was higher in November than in previous months. However, the numbers were carried by an impressive raise by one Dallas firm. 

Last month, nearly 20 local companies raised new funds totaling more than $353 million. The largest of those raises went to LTK, which connects brands to influencers and pulled in a $300 million investment from the SoftBank Vision Fund. The next largest raise went to Solutions by Text, which pulled in $35 million in a growth financing round led by Edison Partners.  

The region also saw at least 16 M&A deals – about the same amount NTX Inno and the Dallas Business Journal tracked in August and September, and higher than the four deals October saw. In addition, two local tech companies hit the public markets last month, with one other filing to do the same. On the flipside, Dallas data center firm CyrusOne is planning to leave the Nasdaq in a $15 billion deal with KKR and Global Infrastructure Partners.

To help you keep track of what’s going on around DFW, NTX Inno put together a roundup of November's financial activity. 

Pro tip: You can check out daily updates on funding, M&A and VC activity in our daily newsletter, The Beat.  

Funding

Fort Worth shaving brand Supply, which came to fame with a $300,000 ‘Shark Tank’ deal in 2019, raised nearly $204,000 via a Kickstarter crowdfunding campaign with more than 2K backers. The funding will go towards launching an upgraded version of its single-blade razors. The company was initially launched in 2015 by husband-wife team Patrick and Jennifer Coddou. In 2017, it raised about $250,000 through a different Kickstarter effort.

Aided by grant funding through the McKinney Economic Development Corporation’s Innovation Fund, high school fundraising solutions startup ConcessionTeams relocated its three-person team from Plano to the Common Desk space near downtown McKinney in October. Financial terms were not disclosed.

High-Tech High Heels, a local nonprofit focused on closing the gender gap in STEM-related fields announced receiving a $500,000 grant from the Toyota USA Foundation. The money will help support the creation of educational resources focused on K-12 students in Dallas ISD. HTHH has chapters in North Texas and Silicon Valley and is working on expanding to Denver and South Texas. 

Plano-based biotech startup Allied BioScience, which focuses on novel antimicrobial coatings, amended an SEC filing from October to reflect raising an additional $990,000 on a more than $3.9 million debt and other options offering. That brings the total amount it has raised on the offering to $3.74 million from a total of 30 investors. Earlier this year, Allied landed $5.72 million from PE firm Capital7, bringing the total amount it had raised at the time to more than $80 million.

Pro Forma Holdings, a Southlake-based firm focused on providing business modeling support for startups and entrepreneurs, reported raising $1.87 million in equity funding from 11 investors on a $3 million offering. According to the filing, Pro Forma was created this year. It lists Wade Myers as the CEO and director. According to LinkedIn, Myers is the co-founder of WayMaker Funds, Alpha Alta Capital Management and Eagle Venture Fund. He is also the managing director at Boldmore Growth Partners. 

Ellie Diagnostics, a Richardson-based veterinary diagnostics lab, announced landing a “strategic investment” from Georgia health- and tech-focused PE firm Avego Healthcare Capital, the investment arm of Avego Management. Terms of the deal were not disclosed. Avego’s VP Jordan McLean also serves as a director at Ellie. The company’s CEO Mark DeCourcy said the funding  will help it develop new diagnostic tools. 

The Dallas chapter of the nonprofit NPower, which focuses on training veterans for careers in tech, received a $175,000 grant from Google. The organization said the funding will help skill vets and underserved youth via Google Career Certificates, as well as helping them land jobs in the community

More than 10 UT Dallas-affiliated companies and research projects competed for a combined $240,000 in cash and in-kind prizes at the university’s Big Idea Competition. Let’s meet the winners (with descriptions provided by UTD).

In September, Dallas women’s sexual wellness app Rosy reached the $1.35 million milestone on its seed raise effort. In November, the company closed on a $2 million round, which was led by Austin’s True Wealth Ventures and joined by Portfolia’s Femtech II Fund and Mindshift Capital. Rosy is planning to use the funding to build out its platform, make new hires and conduct research into sexual health.

While not disclosing the amount, Dallas-based health care logistics provider LifeScience Logistics announced inking a deal to receive a “significant, strategic” investment from Blackstone via funds managed by the PE firm’s Blackstone Tactical Opportunities. The company has more than 600 employees and operates more than 4 million square feet of warehousing and logistics space. LifeScience Logistics said the funding will help accelerate its expansion into the pharmaceutical and medical device markets.

Neurolens, the Coppell-based maker of prescription lenses that “link optometry and neurology,” reported raising $12 million in debt funding from nine investors, per an SEC filing. According to Crunchbase, the company has raised nearly $60 million since launching in 2012. In September, Neurolens named Pierre Bertrand as its new CEO, after Founder Davis Corley transitioned to the role of executive board chairman.

After combining its rewardSyle and LiketoKnow.it platforms under the name LTK earlier this year, the Dallas-based company, which connects brands with influencers, landed a $300 million investment from the SoftBank Vision Fund. The investment gives the approximately 350-person company’s valuation of $2 billion (and Co-founder and President Amber Venz Box a net worth of $315 million, Forbes notes). Venz Box said the platform generated $200 million in sales this year. 

With $2.7 million already raised, Frisco’s InspectIR Systems, which has been developing a screening device that uses a simple puff into a straw to determine if someone has COVID-19, is looking to raise between $8 million and $10 million. The company has more than 15 months of “collaboration directly with the FDA,” said John Redmond, the company's co-founder. There have been clinical trials, and tests on more than 3K people across the country.

The growth of McKinney’s Language Learning Market, an online educational marketplace and language learning resource directory startup, has been fueled by grants, landing one of the city’s EDC’s Innovation Fund grants to expand there back in June. In November, it landed a $10,000 grant from female-owned business marketplace IFundWomen. In addition to funding, the Impact Ventures accelerator alum is also receiving coaching through the organization’s program. In August, CEO Allison Monroe told NTX Inno, LLM is in the process of raising a $500,000 seed round. 

Dallas’ Solutions by Text, which helps financial firms with texting services, landed $35 million in growth financing led by New Jersey-based Edison Partners, marking the company’s first institutional investment. It also announced David Baxter, who has experience in the payments industry, as its new CEO. He follows Co-founder Danny Cantrell, who held the same post.

M&As

Dallas-based engineering and professional services firm Jacobs acquired Maryland software engineering company BlackLynx. Terms of the deal were not disclosed. As part of the move, BlackLynx will be a part of Jacobs’ Cyber & Intelligence business unit led by the company’s senior vice president Caesar Nieves.

Fort Worth’s Paragon Energy Solutions, a provider of innovative solutions for the nuclear energy industry, acquired California nuclear reactor instrumentation and control system licensing firm Technology Resources. Terms of the deal were not disclosed. As part of the deal, Technology Resources President Ted Quinn will join Paragon as its new VP of licensing.

Dallas cybersecurity company Zix is set to be acquired by Canadian information management services firm Open Text in a deal representing an enterprise value of $860 million. Open Text will pay $8.50 per share. The Open Text transaction is expected to close within 90 days for Zix. Its market valuation – which is based on the stock price –  is nearly $500 million. Open Text has a market cap of more than $16 billion. It said the move will help reach to small- and medium-sized businesses. 

Irving-based publicly traded used vehicle e-commerce platform RumbleOn inked an agreement to acquire Fort Worth’s Freedom Powersports, a vehicle dealer with 13 locations across Texas, Georgia and Alabama. Financial terms of the deal, which is expected to close later this year or in early 2022, were not disclosed. The move will bring the number of national RumbleOn locations to 55. In August, RumbleOn acquired Arizona retailer RideNow Powersports in a deal valued at more than $575 million.

After rumors online over the summer, North Texas is set to get a new esports team. Dallas franchise Envy Gaming merged with esports and entertainment company OpTic Gaming, launching a new Call of Duty League team. Terms of the deal were not disclosed. As part of the move, Envy will rebrand its Dallas Empire team to OpTic Texas 

After announcing plans in July to acquire Frisco logistics technology company Transplace from TPG Capital, Uber Freight finalized the $2.25 billion all-cash deal. Part of the financing for the deal came from a $500M investment in the Uber unit by Abu Dhabi Growth Fund, D1 Capital and GCM Grosvenor. Transplace was acquired by TPG in 2017 and had a 2020 revenue of about $3 billion. 

Lightbeam Health Solutions, an Irving-based end-to-end population management company, acquired St. Louis’ CareSignal, a remote patient monitoring solutions company. Financial terms of the deal were not disclosed. Lightbeam was founded in 2012 and is backed by Hearst Health Ventures and 7wire Ventures. According to Crunchbase, CareSignal was launched in 2016 and has raised a total of $7.5 million.

Making its third acquisition in as many months, Fort Worth’s ECI Software Solutions, a cloud-based business management solutions firm, acquired Nevada-based INSEARCH, a business management solutions provider to the construction industry. The company will join ECI’s residential home construction group. Terms of the deal were not disclosed. 

True Velocity acquired an innovative weapons manufacturer amid its push to land a U.S. Army contract potentially worth billions. The Garland-based composite ammunition maker announced scooping up LoneStar Future Weapons in a deal it values at around $84 million and makes LoneStar a wholly-owned subsidiary of True Velocity parent TV Ammo, Inc. 

Richardson-based digital signage and content management software company Reflect Systems inked a definitive agreement to merge with Louisville’s publicly traded Creative Realities, a fellow operator in the marketing technology space. The deal, which will see the combined company continue to trade on the Nasdaq under the ticker CREX, is expected to close in the first quarter of next year. According to an SEC filing, Reflect’s common and preferred stock shares will be converted into $18.6 million in cash.

Dallas online hotel booking provider Getaroom, held by Court Square Capital Partners, is set to become part of Booking Holdings Inc., whose brands include Priceline and Kayak, according to a statement. The price of the deal is roughly $1.2 billion. Getaroom, which was founded in 2005, has more than 150 affiliates. With the deal, it will become part of the Priceline Partner Network.

Irving-based health care analytics platform Lightbeam Health Solutions acquired St. Louis startup CareSignal, which focuses on remote patient monitoring. Terms of the deal were not disclosed. CareSignal co-founder and CEO Blake Marggraff said all of his company's roughly 40 employees will join Lightbeam as part of the acquisition. It will also retain its office in the Cortex innovation district in St. Louis. Lightbeam has annual recurring revenue of about $40 million. With the acquisition of CareSignal, it expects to increase that figure to more than $50 million.

Addison’s Credera, a tech services company owned by Omnicom Group, acquired London-based Salesforce Summit Partner BrightGen. Financial terms of the deal were not disclosed. According to a press release, BrightGen's management team will continue to lead the company. Credera Partner Kevin McDonald said the move will “further enable digital, dynamic customer experiences.”

Plano’s Bogey Free (dba Rackmount Solutions), a provider of computer hardware, was acquired by Dallas mid-market private equity firm Baymark Partners. Financial terms of the deal were not disclosed. The company said the move will help it scale, potentially through future add-on acquisitions.

Japanese cash management solutions firm Glory Global Solutions has made an offer to acquire Carrollton’s Revolution Retail System, an electronics maker focused on automated money management and recycling technologies. Financial terms of the deal were not disclosed. Glory said the move will help expand its solutions portfolio. 

Ohio’s Accurate Group, a real estate tech company, acquired Watauga, Tx.-based eMerge Property Solutions, a broker price opinions and alternative valuation solutions firm. Terms of the deal were not disclosed. Brandon Winters, eMerge’s co-founder and CEO will continue to lead the company as a standalone division of Accurate. Watauga is about 10 miles north of Fort Worth. 

Lewisville-based Vantora, an online reservation and waiver-signing system for entertainment venues, was acquired by California venue management software company Clubspeed. Terms of the deal were not disclosed, but Clubspeed said the move will help it serve more than 700 customers in 46 countries. Following the acquisition, Vantora founder Larry Dague will be retained as a consultant for Clubspeed. 

Investor Activity 

TPG Growth, the growth equity and mid-market investing arm of Fort Worth- and San Francisco-based investment giant TPG, led a $202 million Series D round for California litigation platform Everlaw, valuing the startup at more than $2 billion. H.I.G. Growth Partners, CapitalG, Menlo Ventures, Andreessen Horowitz and K9 Ventures joined the round. As part of the deal, TPG partner Mike Zappert will join Everlaw’s board of directors.

The Mark Cuban Companies was one of 13 investors on a $20.5 million Series B funding round for Atlanta’s PadSplit, an affordable housing startup converting underutilized single-family homes or apartments into shared worker housing. Other investors on the round include Core Innovation Capital, Impact Engine, Citi, and Cox Enterprises. PadSplit is planning to use the money to expand its inventory in Texas and Florida. The company’s website lists a property in Arlington and teases upcoming properties in the Fort Worth area.

Local billionaire and serial entrepreneur Mark Cuban was one of several investors on a recent funding round for Los Angeles startup VNTANA, a content management company that allows e-commerce retailers to highlight virtual and augmented reality products. Joining the round was former Oculus CEO Brendan Irbe, Flexport and Anorak Ventures. According to TechCrunch, the new funding brings VNTANA's total to around $12.5 million since launching in 2012. 

After launching its VC funds BIOS SIRPant Co-Invest I, LP and BIOS SIRPant Co-Invest I QP, LP in recent months, Fort Worth biotech-focused firm Bios Partners amended its filings to reflect new raises. In its fund for qualified purchasers, it reported raising $5.46 million from 35 investors. In the other fund, it reported raising $5.47 million from 94 investors. Bios also lists Fort Worth family office Steelhead Capital Management and CAVU Ventures, which was founded by “Shark Tank” investor Rohan Oza, as general partners of the fund.

Dallas serial investor and entrepreneur Mark Cuban was one of a number of investors on a $120 million Series D funding round for New York-based lottery app Jackpocket, bringing its total to nearly $200 million. Left Lane Capital joined the round, which was joined by Kevin Hart, Whitney Cummings, Manny Machado, Greenspring Associates, and others. The funding will help Jackpocket grow its gaming offerings and expand outside the U.S. 

TPG Growth, the growth equity and mid-market arm of Fort Worth- and San Francisco-based investment firm TPG, was an investor on a $18.7 million Series A round for California restaurant hiring and recruitment app Seasoned. Horizon Ventures led the round, which brings Seasoned’s total to $30 million. The company launched its app in Dallas last year. The funding will help it expand into new markets. Seasoned currently operates in Houston, Austin, Orlando and Miami.

Agrology, a Virginia-based predictive agriculture technology platform, announced raising $815,000 on the Fort Worth-based agriculture crowdfunding platform Harvest Returns, which focuses on agtech companies and operations with innovative practices. The company said it plans to use the funding to expand its team and fuel R&D efforts. According to Harvest Returns, businesses have raised more than $17 million on its platform, since launching in 2016.

Disprz, a Mumbai-based AI-powered business upskilling platform, landed a $13 million Series B round led by local early-stage VC firm Dallas Venture Capital (formerly Naya Ventures), which has offices in Irving and India. Go1, Tara India Fund IV and Auctus Capital joined the round. Disprz plans to use the funding to develop its product, grow its team and establish a U.S. sales and marketing division. 

Gore Range Capital, a skin health industry focused VC firm that recently relocated from New York to Southlake, was one of a handful of investors on a $8 million Series B funding round for Chicago clinical-stage oncology startup NovaScan. Builders VC led the round, which was joined by BioPacific Investors, Dipalo Ventures, Harvard Business School Angels Chicago, and Stateline Angels. The money will help NovaScan further develop its interoperative cancer-detection technology. According to Crunchbase, the new funding brings the company’s total to $15.5 million. 

Fort Worth-based early-stage venture capital firm Summit Peak Partners reported raising $6 million in equity and pooled investment fund interests for a new fund titled SP Hypernova II, LLC. At the beginning of the year, Summit Peak reported raising more than $19 million from 58 investors for its first Hypernova fund. Summit Peak’s website lists 55 companies in its portfolio, with some of the most notable including mobility startup Bird, social media platform Pinterest, and homebuying and selling platform Opendoor.

Local early-stage VC firm Dallas Venture Capital (formerly Naya Ventures) was one of a handful of investors on a $30 million Series B round for Bellevue, Wash.-based SaaS startup CoreStack, Fortune reports. Avatar Growth Capital led the round, which was also included Iron Pillar. This is the second Series B investment for DVC, which focuses on emerging tech, after it led a $13 million investment in Mumbai-based Disprz.

Public Market Activity

After forming Plano-based tech services company Loyalty Ventures as a spin-off of Alliance Data Systems earlier in November, Loyalty hit the public markets. The company began trading on the Nasdaq Monday under the ticker LYLTV, with share prices varying from around $38 to $45, giving it a market cap of about $866 million. Columbus, Ohio-based Alliance Data Systems (NYSE: ADS), a payment and lending products provider, said Monday it completed the separation of its LoyaltyOne segment into the publicly traded company. 

Dallas blank check company Switchback II Corporation successfully took e-scooter company Bird public on the NYSE via a SPAC merger. The deal was valued at about $2.3 billion when shareholders approved the merger on Tuesday. The combined company, Bird Global, received about $414 million in incremental liquidity when it hit the markets yesterday, trading under the ticker BRDS. Switchback went public in January, raising $300 million.

Dallas vaccine maker Vaxxinity made its debut on the Nasdaq yesterday, after downsizing its IPO pricing from a range of between $14 and $16 per share to $13. Still, it saw its stocks jump by mid-day to $16.07. The gross proceeds from the offering, minus some costs, are expected to be $89.7 million, assuming underwriters fully exercise their over-allotment option. Vaxxinity was formed earlier this year for the purpose of combining and reorganizing biotech firms United Neuroscience and C19.

CyrusOne Inc. in Dallas is planning to exit the Nasdaq in a multibillion deal. The company (Nasdaq: CONE), a data center real estate investment trust, has an agreement with KKR and Global Infrastructure Partners to go private, according to a statement on Monday. The investors will acquire CyrusOne for $90.50 per share in an all-cash transaction. The deal is valued at about $15 billion including the assumption of debt.

Applied Blockchain Inc. wants to move up to the Nasdaq Global Select Market. The Dallas company, which is a crypto miner and is developing hosting services, is looking to graduate from the Pink Market operated by OTC Markets Group Inc., according to a new document submitted to the U.S. Securities and Exchange Commission. The company listed $75 million as the proposed amount to be raised, though that number can change.