After sky-high fundraising activity in 2021, venture capital investment in Orlando is coming back to earth.
Metro Orlando companies collectively raised $42.3 million from seven investment deals in the first quarter, according to an April 13 report from PitchBook and the National Venture Capital Association. That was down from $69.7 million raised in the fourth quarter and $70 million raised in Q1 2021.
Venture capital activity is important because the money often is critical for early-stage companies. It funds companies as they scale up while also providing business expertise and industry connections.
In fact, the quarter’s top investment deals will spur growth and innovations at local companies.
Here’s a look at metro Orlando’s top deals of the quarter above $1 million, according to PitchBook and the National Venture Capital Association:
- Beep: The Orlando-based self-driving shuttle provider raised $25 million to further the autonomy of its vehicles and create an additional 20 jobs by this summer, CEO Joe Moye previously told Orlando Inno.
- Finexio: This Orlando-based accounts payable fintech company closed a $10 million round led by Mendon Ventures Partners. The money enables the firm to further expand into the financial institutions arena, the company said in January.
- Third Time Entertainment: The Orlando-based firm developing sports games powered by blockchain raised $3.5 million. The money is being used to grow the firm’s staff, form new partnerships and boost marketing, founder and CEO Ian Cummings told Orlando Inno. Third Time employs 20 combined full-time workers and contractors, with four open positions.
- Qualytics: This firm, which has a presence in Orlando and Baltimore, raised $3 million last quarter, according to the report. The company, which helps companies improve their data quality, plans to ramp up its sales this year and finish 2022 with 30 enterprise customers, CEO Gorkem Sevinc previously told Orlando Inno.
While Orlando’s startup investment total last quarter was down, that’s the case across the country. U.S. companies raised a collective $70.7 billion in Q1 this year. That was down from $95.4 billion in Q4 2021, but up from $32.7 billion in Q1 2021.
The drop at the start of 2022 is an “expected adjustment” from the record fundraising year that was 2021, National Venture Capital Association President & CEO Bobby Franklin said in a prepared statement. “Where the slowdown will taper off remains to be seen, but venture capital investors are in a strong position with ample dry powder amassed in recent years and the first quarter to continue fueling startups that are solving big needs and transforming how we live and work.”
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