Venture capital investment in metro Orlando companies increased in the third quarter, although the region is not on track to hit the record levels of investment dollars seen in 2020.
There were nine startup investment deals worth $66.3 million in metro Orlando last quarter, according to data from PitchBook and the National Venture Capital Association released Oct. 14. Investment activity was up 26% from $52.7 million in deals in the second quarter. It was led by a big $31 million round that was closed in July by Orlando-based ObvioHealth USA Inc.
Venture capital deals can be critical for early-stage companies and the community. It funds companies as they scale up while also providing business expertise and industry connections. The growth of these companies in turn creates high-wage jobs and innovative solutions for local businesses and residents.
Telehealth, disinfection tech draw the most dollars
In fact, these deals will create dozens, if not hundreds, of jobs at the companies that closed them. Here's a look at Orlando's investment deals of $5 million or greater last quarter and how they'll grow local firms:
- ObvioHealth: The company that enables virtual medical trials will invest its $31 million raise back into its software and to hire up to 50 people, founder and CEO Ivan Jerry previously told Orlando Inno.
- Violet Defense Group Inc.: The Orlando-based ultraviolet light disinfection firm raised $12 million in September, according to the report. U.S. Securities and Exchange documents showed Violet Defense raised at least $6 million, which Vice President of Marketing Jessica Jones said was part of a larger Series B round. The money will fund hiring, research and development and more.
- BlackCloak Inc.: The Lake Mary-based cybersecurity firm that focuses on affluent clients raised $11 million in a Series A round in July to expand its team, CEO Chris Pierson previously told Orlando Inno.
- OneRail: The Orlando-based last-mile delivery software firm in August announced a $9 million Series A to hire dozens and connect its platform with more delivery methods, CEO Bill Catania previously said.
'Eager to write checks'
Despite a quarter-over-quarter uptick, metro Orlando is behind the pace it was on in 2020, when local companies combined for the most venture capital investment on record: $325 million.
Orlando startups raised $188.3 million in the first three quarters of the year, far behind the $267.9 million raised in the first three quarters of 2020. It would take a few big investment hauls in the fourth quarter to catch up. However, Orlando is off to a hot start this quarter, as Orlando-based Kore.ai Inc.'s $50 million Series C round likely will be counted in the next report.
Meanwhile, the momentum in the U.S. venture capital sector that came about last year continues. Nationwide, $82.8 billion in capital was deployed in the third quarter, more than the $75 billion invested in U.S. companies in the second quarter, according to the report. That means 2021 venture capital investment is on track to surpass the record-setting $156.2 billion invested in 2020.
"Existing companies and a healthy pipeline of new startups have found investors — especially nontraditional investors — are eager to deploy the record dry powder and write ever larger checks," PitchBook founder and CEO John Gabbert said in a prepared statement.
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