North Texas tech firms and startups again crossed the $100 million mark in venture funding like they did last month, with the region still seeing more than $110 million in funding deals, much of which was carried by smaller seed- and Series A-stage rounds.
Based on NTX Inno and Dallas Business Journal reporting, at least 25 tech companies and startups brought in new funding in July. While the largest round went to SolCyber, which emerged from stealth with a $20 million Series A round led by ForgePoint Capital at the end of the month, most companies like Nada, Apty, Bilt and Gig Wage saw investments under $10 million.
The local M&A scene mirrors the funding activity with more than 15 deals involving local companies, in addition to a completed SPAC merger that saw Plano specialty snack maker go public on the Nasdaq in a deal with special purpose vehicle with Andina Acquisition Corp. III. Other public market news of the month involved both logistics unicorn Lalamove, which has its U.S. operations largely based in Dallas, and investment giant TPG discusses plans to go public.
To help you keep track of what’s going on around DFW, NTX Inno put together a roundup of June’s financial activity.
Pro tip: You can check out daily updates on funding, M&A and VC activity in our daily newsletter, The Beat.
Fundings
Dallas-based SolCyber, a cybersecurity firm, raised $20 million in a Series A effort. SolCyber attracted funding that was led by ForgePoint Capital, a Silicon Valley investment firm, according to a statement. The company will invest in technology offerings, build market awareness, and support an aggressive hiring strategy.
Dallas video tech company OneDay raised a $19 million Series B round led by Volition Capital. Austin firm Silverton Partners joined the round, which brings OneDay's total to about $25 million. The company has been experiencing recent growth with its video storytelling technology. When it launched in 2017, OneDay's platform was aimed at senior living facilities. It's since expanded into the funeral and real estate markets. That allowed OneDay to see its sales grow by more than 100 percent in 2020. The startup's headcount has also grown to about 40, with plans to reach 60 employees by the end of the year – something OneDay is looking to accommodate with new digs in the Design District that is more than twice the size of its previous space.
According to an SEC filing, Fort Worth's Sanara MedTech, a biotech company focused on surgical and wound care technology, reported raising $500,000 in equity funding from a single investor. The SEC filing for Sanara, which trades on the Nasdaq under the ticker SMTI, follows its acquisition of certain San Antonio microbiological research company Rochal Industries assets in a deal consisting of $500,000 in Sanara’s common stock and $500,000 in cash.
Since the launch of Dallas startup OverlayAnalytics, an end-to-end data analytics and financial reporting platform, in 2019, the company has seen some changes. It’s also seen recent validation, being named the winner of cloud data giant Snowflake’s inaugural Startup Challenge, which will help support OverlayAnalytics as it aims to raise its seed round of funding. Co-founder and CEO Shupe said Snowflake is now looking to invest up to $250,000 in the startup via its venture arm with that honor. Shupe said the funding from Snowflake Ventures would represent a portion of a $2.5 million seed round OverlayAnalytics is planning to kick off soon.
After launching a crowdfunding campaign on the Republic platform last year as part of an effort to raise a $2 million seed round, Dallas real estate tech startup Nada closed that portion of the round. The crowdfunding portion of the raise closed Jul7 27, with Nada landing more than $1.8 million from close to 4K investors. According to CEO and Co-founder John Green, with the help of a few private investors, that brings the seed round's total to more than $2.5 million. Nada, a home buying and selling platform, launched in 2018, raising $500,000 at the time.
Cariloop, a Dallas-based platform focused on pairing caregivers with coaches to manage health and wellness for friends and family, raised a $15 million Series B round led by Atlanta's Noro-Moseley Partners. KCRise Fund, Revolution's Rise of the Rest Seed Fund, Patterson Thoma Family Office, MPK Equity Partners and 1843 Capital joined the round, bringing Cariloop's total funding to more than $24 million. The company said it's seen revenue climb more than 500 percent from Q2 in 2019 to the same period this year without giving specific figures. Since its launch in 2012, the company has grown to 75 employees. It's looking to triple that number over the next two years.
Hurst-based Savhera, an essential oils maker that works to provide employment to formerly trafficked women across the globe, reported raising $125,000 out of a $400,000 offering from four investors, per an SEC filing. Savhera, founded in 2018 by TCU professor Vanessa Bouche, has raised a total of $334,000, according to Crunchbase.
Recently-launched startup Laundry On Demand, which provides the services its name describes, is using small business bond marketplace SMBX with aims to raise $75,000, Dallas Innovates reports. The company has raised a little more than $10,000. The funds will largely go to advertising, as the company looks to expand from DFW into Houston, Austin and San Antonio within the next quarter. It’s also planning to use funds to buy supplies.
The Dallas-based nonprofit accelerator program Impact Ventures hosted its Spring 2021 Virtual Startup Showcase. At the pitch competition, $50,000 was up for grabs. The top prize of $25,000 was Houston’s Church Space, a platform for religious institutions to rent out their spaces for events. In second place was Cybershield Security, a cybersecurity software and solutions company, which walked away with $15,000. And winning the third place $10,000 prize was Language Learning Market, an online marketplace for language learning and other educational content based in McKinney. In addition to the pitch competition, four companies from Impact Ventures’ Local Entrepreneur Accelerator Program track landed Project Amplify Grant Awards from Jabian Consulting, which partnered with Impact in April to provide funding to its cohort. Winners included: Fort Worth’s The Good Jerky ($15,000), a maker of fish-based, health-conscious snacks; Le Rouge Cuisine ($5,000), a Dallas-based catering and private event company focused on Creole cooking; Milkspace ($2,500), a Garland e-commerce platform selling breastfeeding products; and Dallas’ BCM Engineering Solutions ($500), a process improvement consulting service.
Apty Inc. landed a $7.5 million Series A funding round, the company said this week. 645 Ventures led the round. Companyon Ventures and Reformation Partners joined the funding. Since November, the company has raised about $13 million, CEO Krishna Dunthoori said in an emailed statement.
DoUHave, an online secondhand marketplace focused on helping buyers rather than sellers, launched at the beginning of the year. In that time, it’s gathered thousands of users and kicked off a Wefunder crowdfunding campaign to raise $300,000 to become the go-to place to connect collectors across the country. Through DoUHave’s crowdfunding campaign, it has raised a little more than $10,000 with a $5 million valuation cap. The company said it has seen more than 225 percent month-over-month growth since its launch in January and has attracted around 22,000 active users.
Grapevine’s Bilt, a maker of a smartphone app that helps people assemble items at home, raised $4 million. According to CEO Nate Henderson, the money will be used to "take care of the team" along with more for areas that include sales, marketing and software development. The move comes as Bilt saw its sales more than double amid the pandemic. The company’s tech is more than an instruction manual. The company’s service provides slick, three-dimensional graphics to help set up things from flooring and furniture to swing sets.
One of the big names in golf lended some financial help to a Dallas company’s new effort. Rory McIlroy’s Symphony Ventures has committed to an investment of at least $10 million in “Puttery,” which is Drive Shack Inc.’s new competitive socializing and entertainment golf venue, according to a statement on Monday. The deal extends over Puttery’s development schedule in exchange for a 10 percent ownership in the equity of each site that is planned through 2023.
After relocating its HQ from the Seattle area to Plano over a year ago, Leadr, a people management software startup, announced landing a $10 million Series A round led by investment firm Bedrock Capital. Joining the round were Leadr Co-founder and Executive Chairman Chris Heaslip, Intuit CRO Bobby Morrison and Pushpay Co-founder Eliot Crowther, and family and friends. The new money brings Leadr's total funding to about $14 million.
Plano-based Tridius Technologies, an IT and app development consulting firm, received a majority investment from fellow tech consulting firm Terralogic. The terms of the deal were not disclosed. According to a statement, CEO Matthew Ramsey, CTO David Clark and executive VP Kevin Wheat will retain equity ownership in Tridius. Terralogic CEO Renil Komitle and Duncan Robertson, CFO of Paxton Capital, which backs Terralogic, will join Tridius' board as part of the move. Tridius says it also has operations in London and San Jose, Costa Rica.
Two startups with Dallas offices were among 29 companies landing a piece of a massive contract from the U.S. Department of Defense that’s worth up to $950 million. Hypergiant Galactic Systems, a division of AI firm Hypergiant Industries, and Parasanti, an AI and machine learning analytics company, will be working for the Joint All Domain Command and Control initiative. That is DoD’s effort to connect sensors from the Air Force, Army, Marine Corps, Navy and Space Force into a single network. The work will help develop and operate systems that will compose “a unified force across all domains” — air, land, sea, space, cyber and the electromagnetic spectrum.
Plano-based L-Nutra, a maker of innovative nutritional products, announced receiving a "significant" growth investment from a consumer- and tech-focused PE firm Brentwood Associates. The terms of the deal were not disclosed. L-Nutra Chairman and CEO Joseph Antoun said the company plans to use the funds to expand and strengthen its infrastructure. According to Pitchbook, last year L-Nutra was valued at about $75 million.
Local gig economy-focused fintech startup Gig Wage has been on a roll. Last October, it landed $7.5 million Series A round led by Green Dot Corp. It later extended that round in January, bringing the round’s total to about $10 million with new backer Foundry Group. All that while aiming to more than double its workforce to about 50 by the end of this year. In July, the startup brought in new funding and a new team member. Gig Wage recently raised $3.25 million from Silicon Valley Bank, bringing its total funding to $16.5 million, The Dallas Morning News reports. It’s planning to use the funding to boost its growth and marketing efforts. To help with those efforts, Gig Wage has brought on Clarisa Lindenmeyer as its new chief brand officer and chief of staff, meaning she will also oversee Gig Wage’s internal DEI initiatives. Lindenmeyer is the former CRO of Tech Wildcatters. She most recently served as the founder and president of local consulting firm Proximity to Power, which she is shutting down as she takes on the new role at Gig Wage.
After entering the CPG industry with a lineup of freeze-dried food products and changing its name from Black Ridge Oil and Gas to Sow Good in January, the Irving-based company raised new funds. Sow Good reported raising more than $3 million in equity funding from 29 investors, per an SEC filing. That comes after the company raised $2.5 million in February, which at the time brought its total funding amount to $4.3 million, according to Dallas Innovates.
With tornadoes, hurricanes and floods, Texas is no stranger to natural disasters. And with new grant funding, Halit Üster, an engineering professor at SMU, landed more than $315,000 in grant funding from the National Science Foundation to develop models that can track where a natural disaster is likely to occur and how a region’s population will likely be affected, so that responding agencies can get supplies where they are needed most. The funding will help build out the models, adding more variables and details. Üster began working on the project in 2005, after Hurricanes Katrina and Rita.
After launching in December with the aim of driving mobility innovation in the region, the North Texas Center for Mobility Technology (NTCMT) funded its first projects, Dallas Innovates reports. Receiving an estimated $600,000 in funding is Hermes Autonomous Air Mobility Solutions, which is developing an identification and alert system to detect autonomous craft, and Emobilus, a Plano-based company developing tech to help autonomous vehicles detect bike riders on the roadway. Both companies will be working with the University of North Texas to test prototypes at Inspire Park in Frisco.
Arcade unveiled a $4.5 million funding effort as it provides services that help companies keep their sales talent on board, according to a statement. The new effort raises the overall amount that the company has raised to about $7.5 million, according to David Cherrie, CEO and co-founder, who responded to emailed questions. The funding was led by Stage 2 Capital with participation from Revolution’s Rise of the Rest Seed Fund and others.
Illuma Labs, a Plano-based secure voice authentication platform, reported landing a $2.5 million investment from the Curql Collective’s flagship fund. Incorporating AI and machine learning, the startup’s fraud-prevention technology Illuma Shield creates what it calls an “AudioPrint,” like an audio fingerprint of a caller’s voice, created during the natural course of a conversation. The company said it plans to use the recent funds to develop new anti-fraud features and bring on additional platform integrations.
M&As
Plano aerospace company Martin UAV, which focuses on unmanned vertical takeoff and landing craft, is acquired by San Diego’s Shield AI, a company taking tech from self-driving cars and applying it to defense aircraft. The terms of the deal were not disclosed. Shield plans to integrate its artificial intelligence software to Martin's V-BAT craft, which the company says can stay in flight for up to 11 hours and carry cargo of 25 pounds.
In an all-local deal, MediBookr, a digital health startup, was acquired by Plano-based integrated population health solutions firm StratiFI Health, the parent company of primary care network Catalyst Health Network. Financial terms were not disclosed. As part of the deal, MediBookr will operate as part of Catalyst, with its leaders becoming part of Catalyst’s extended leadership team. Catalyst has been a long-time client of MediBookr before the deal.
Parisian international tech firm Atos scooped up two local companies: Plano’s Visual BI, a data analytics and business intelligence company, and Irving-based computing cloud platform provider Nimbix. The terms of the deals were not disclosed. The move strengthens Atos’ offerings for BI and analytics in cloud environments.
Arlington's FlexXray, which providing food inspection and recovery services with (you guessed it) X-rays, found a new owner. The company was acquired by Warburg Pincus and Tilia Holdings from Levine Leichtman Capital. Financial terms were not disclosed, although the deal was described as a “significant growth investment.” FlexXray has about 200 employees and operations in Connecticut, Illinois and South Carolina.
Uber Freight bought Frisco third-party logistics company Transplace in a $2.25 billion deal made up of $750 million in stock and the remaining balance in cash from TPG Capital, which acquired it in 2017. Uber Freight said its network of digitally enabled carriers and Transplace's shipper tech and operational products would produce "a fully scaled logistics platform," helping it along its path to profitability.
RealPage, the Richardson-based real estate software and data analytics firm, announced plans to acquire Oregon digital solutions firm G5 Search Marketing. Terms of the deal, which is expected to close in Q3, were not disclosed. After closing, RealPage said it plans to keep the company’s team and operations in Bend, Ore. According to Crunchbase, G5 has raised $91 million since it was launched in 2005.
After expanding into the campground management industry earlier this year, ParkHub made another acquisition. This time focused on its core business: parking. The Dallas-based company announced its acquisition of Philadelphia parking payment platform CurbTrac. The terms of the deal were not disclosed.
Solera Holdings, a Westlake-based risk and asset management data and software firm, acquired Australian insurance technology provider ENData. The terms of the deal were not disclosed. It is expected to close in Q3. According to Crunchbase, Solera has made 29 acquisitions since it was founded in 2005, including three other deals this year: California driver education platform eDriving, Irving auto industry software provider DealerSocket and Dallas fleet management platform Omnitracs.
The company that acquired Complexity Gaming in June made a new deal to help better monetize the Frisco-based esports firm's media assets. GameSquare Esports, of which the Jerry Jones Family and other Complexity shareholders have a 47 percent stake, acquired Los Angeles-based marketing agency Cut+Sew and its gaming-focused subsidiary Zoned in a $7.85 million cash and shares deal. Cut+Sew spun off Zoned last year to focus more on the growing esports industry. The company helps other brands – interestingly, including Dallas esports franchise Envy Gaming – break into and grow the space. It also operates a venture arm that has invested in organizations like FaZe Clan, PlayVS and DropLabs.
Addison’s Authentix, an authentication solutions provider, acquired Singapore-based Strategic IP Information, a brand protection and content rights monitoring company. The terms of the deal were not disclosed. As part of the deal, Strategic will continue to operate as a stand-alone entity. In addition to Singapore, the company said it has teams in India, China, Europe, and New York.
PFSweb, an Allen-based commerce service company, agreed to sell its global customer experience and commerce agency business unit LiveArea to Merkle Inc., a part of Dentsu Group, for about $250 million. Under the agreement, the net proceeds are expected to range between $185 million to $200 million, after consideration of estimated taxes and transaction-related expenses. PFSweb expects to use a portion of that, along with existing cash on hand, to pay down in full its senior financing facilities.
In an all-local deal, Frisco’s Evolve Mortgage Solutions, acquired Dallas’ E-Notary Seal, a digital signature and document notary platform. Terms were not disclosed. As part of the deal, Felicia Grimes, who founded E-Notary in 2019, will join Evolve as the new VP of its e-mortgage division.
The Jerry Jones Family and the Frisco esports company it backs made a deal with Canadian firm GameSquare. According to an announcement on Wednesday, shareholders of Complexity Gaming are taking a roughly 47 percent stake in the esports firm to the north. In addition to the Jerry Jones Family, shareholders include Goff Capital and Jason Lake, CEO of Complexity. With the deal, GameSquare, already a player in esports, is acquiring Complexity Gaming in a $27 million all-stock transaction.
Investor Activity
Mark Cuban is reupping his commitment to Los Angeles startup Mad Rabbit, after first investing in the company when it pitched on “Shark Tank” in March. The Dallas serial investor joined a $2 million seed round for the tattoo care brand that was led by Acronym Venture Capital. Buffalo Bills wide receiver Stefon Diggs also joined the round. Mad Rabbit plans to use the funding to expand its manufacturing, marketing and operations as it looks to launch new products.
After raising $50 million for its fourth and largest fund, Dallas financing firm Cypress Growth Capital is beginning to deploy that money. The firm announced making a $2.25 million non-dilutive investment in Charlotte-based health care SaaS startup MedChat, which offers a chatbot solution to connect and engage care organizations and patients. According to Crunchbase, MedChat has received the previous backing from startup accelerator Almaworks. The company said it plans to use the funds to expand sales and marketing and develop new features for its technology.
The global impact investing arm of Fort Worth- and San Francisco-based giant TPG announced its first closing of $5.4 billion for its inaugural climate-focused fund. In all, TPG Rise is looking to raise $7 billion for the fund by the end of the year. Investors include Allstate, the Ontario Teachers Pension Plan Board, and the Washington State Investment Board. TPG Rise Climate is aimed at providing growth equity to ventures with "innovative climate solutions." The fund's managing partner is Jim Coulter, TPG's founding partner and executive chairman. Former U.S. Treasury Secretary Hank Paulson serves as the fund's executive chairman.
Austin-based startup Eterneva, which focuses on using the cremated ashes of people and pets to create the gem, raised an oversubscribed $10 million Series A with the backing of Dallas serial entrepreneur Mark Cuban. The round was led by Tiger Management and joined by Goodwater Capital, Capstar Ventures and NextCoast Ventures. Cuban has been a backer of the company since Eterneva first appeared on “Shark Tank” in 2019. The new funding brings the company’s total to nearly $17 million. Eterneva has come under previous scrutiny, with critics calling the startup’s service a scam – a claim Cuban has denied.
There's a new PE fund in Dallas focused on clean tech and infrastructure. Cresta Fund Management, formerly called Cresta Energy Capital, reported raising $50 million per SEC filing. The firm, led by co-founders and partners Chris Rozzell, Drew Armstrong and David Miller, says it focuses on early-stage investment opportunities in renewable fuels, carbon capture and sequestration and energy infrastructure.
Austin brain-computer interface startup Paradromics, which is looking to commercialize a device that turns bioelectric signals into processable data, raised $20 million with the help of Dallas firm Westcott Investment Group. The round was led by Prime Movers Lab and joined by Dolby Family Ventures, Synergy Ventures, and Pureland Global Ventures. According to the Dallas Morning News, Wescott's participation came in around $2.5 million in bridge funding it invested in Paradromics last year. That bridge round converted into a seed round it reported raising this month. Wescott has been a backer of Paradromics for years, having invested more than $4.2 million in the startup since 2018.
Fort Worth’s Harvest Returns, a crowdfunding investment platform focused on agricultural innovation, reported raising $355,000 on a nearly $1.5 million offering from 25 investors, per an SEC filing. According to Harvest, the firm has raised more than $14 million for ag-related businesses since its launch in 2016.
Local celebrity and serial investor Mark Cuban joined a $19.3 million Series A round for San Diego-based 3D-printed metal additive manufacturing startup Fabric8Labs. The round was led by Intel Capital and joined by Lam Capital, TDK Ventures, SE Ventures, imec.xpand and Stanley Ventures. The company said it's planning to use the new funds to help commercialize its tech and develop new applications.
Gauge Capital, a Southlake-based PE firm focused on tech, health care consumer goods and other markets, announced making a strategic investment in California cybersecurity awareness training company NINJIO to recapitalize the business. Terms of the deal were not disclosed. As part of the deal, Gauge Co-founder and Managing Partner Tom McKelvey and Senior VP Sam Smith will join NINJIO’s board.
Dallas-based long/short equity hedge fund Maverick Capital, which Tiger Cub investor Lee Ainslie launched, is raising an indefinite amount for a newly-created pooled investment fund called Maverick Growth CI, LP. Maverick invests in several things, including tech ventures, health care and consumer stores. According to The Wall Street Journal, Ainslie said the firm was aiming to raise $500 million for a new late-stage growth fund in May.
Dallas single-family home leasing company Invitation Homes looks to make its properties more sustainable while investing in new clean technologies. The publicly traded company announced it had invested in California real estate tech VC firm Fifth Wall's Climate Technology Fund. Terms of its investment were not disclosed. Fifth Wall launched the vehicle last year to raise about $200 million to invest in decarbonization solutions across all real estate asset classes. Fifth Wall made its first investment from the fund, joining an $80 million round for California smart motor system company Turntide in March, and led its first round from the fund with its investment in New York heating and cooling system startup Sealed’s $16 million Series B.
A Dallas-based fund, launched in 1993 by brothers Tom and Joe Barton, famous in short selling history from their start more than 30 years ago at Palo Alto-based Feshbach Brothers, raised new funds. According to an SEC filing, White Rock Capital Management, which functions as a VC firm, family office and hedge fund, reported raising $10 million for a new fund titled White Rock Capital Partners II, LP from a single investor. According to the Dallas Business Journal, the Bartons are now largely focused on gene-therapy firms.
Fort Worth PE and investment firm Satori Capital, which focuses on conscious capitalism, made an investment in Formulife, an Allen-based dietary supplements maker. The terms of the deal were not disclosed. Formulife plans to use the new funds to more than double the size of its production facility to more than 90,000 square-feet.
IPOs/SPACs
TPG Pace Solutions, a SPAC formed by Fort Worth- and San Francisco-based firm TPG, is set to take Portland vacation property rental platform Vacasa public on the NYSE later this year. Following the planned merger, Vacasa will trade under the ticker VCSA. According to CNBC, the $400 million deal gives Vacasa a $4.5 billion valuation.
Plano-based snack maker best known for its biltong product Stryve Foods went public, trading on the Nasdaq under the ticker SNAX. It’s planned SPAC merger with Andina Acquisition Corp. III, that valued Stryve at around $170 million in January, closed today. According to The Dallas Morning News, the company did $20 million in sales last year and is expecting to hit $51 million this year.
Lalamove, an on-demand logistics and delivery startup valued at around $8 billion, is considering moving its U.S. IPO to Hong Kong, where its HQ is located, Bloomberg reports. In 2020, the company set up shop in DFW, making the region its de facto hub of U.S. operations. In late June, the publication reported the unicorn had confidentially filed to go public state-side, looking to raise a minimum of $1 billion. The move comes as China looks to strengthen the supervision of firms listed offshore. Last month, medical data company LinkDoc Technology made a similar move. According to the Bloomberg report, no plans for Lalamove are final, with sources saying it is paying attention to the markets with no set timeline or venue for the IPO.
Lewisville-based Parsec Capital Acquisitions Corp. is a special purpose acquisition company incorporated in March and is seeking to combine with or acquire one or more businesses in the space economy, transport or technology industries. The SPAC, which intends to apply to be listed on Nasdaq under the symbol “PCXU”, will be led by a six-person board, including a former federal aviation official appointed by then-President Donald Trump, according to a registration statement filed Thursday with the Securities and Exchange Commission. Parsec is relatively small compared to other blank check companies, seeking only up to $50 million to acquire a mid-cap target with enterprise value between $100 million and $300 million.
According to the Wall Street Journal, Fort Worth- and San Francisco-based investment giant TPG is eyeing options to go public. The firm considers a straightforward initial public offering and a merger with a special purpose acquisition company, though the traditional route is more likely, sources told the WSJ. The firm is valued at about $10 billion. However, this isn’t the first time the private equity firm has considered hitting the public market, the Journal reported. Seven years ago, the news outlet wrote that TPG could go public in “two years at the earliest,” per its sources.
