When David Adelson went outside Central Florida to raise capital for his technology company Intelity Inc. before he sold it in 2019, he often got a less-than-enthusiastic response.
However, many local founders this year are having no trouble getting investors from across the country to buy into their businesses, Adelson, now executive director of technology and innovation at the Orlando Economic Partnership, told Orlando Inno.
“When I went out to raise capital at Intelity, the reply was ‘Oh, you're from Orlando.’ These entrepreneurs aren’t getting that” sort of response.
As of May 5, metro Orlando companies collectively have raised at least $816 million, according to company announcements, U.S. Securities and Exchange Commission filings, the National Venture Capital Association and PitchBook. That’s more than local firms raised in 2021 ($361.6 million) and 2020 ($378.4 million) combined.
These dollars are important for early-stage companies. They fund companies as they scale up while also providing business expertise and industry connections. That often means the creation of high-wage jobs and the development of more innovative products and solutions.
Here's a look at the five biggest deals tracked in metro Orlando so far this year:
- A $425 million round closed by Orlando-based Stax that made the firm a tech unicorn worth more than $1 billion
- A $196 million Series D round raised by Winter Park-based Mosyle Corp.
- $125 million raised by Orlando-based Fortress Information Security LLC
- Maitland-based ThreatLocker Inc.'s $100 million Series C round
- Winter Garden-based Anuvia Plant Nutrients Corp.'s $65.5 million Series D round
Meanwhile, the dollars are coming from across the country — and around the globe.
Investors in these five deals include New York-based Goldman Sachs, New York-based Insight Partners (which previously invested in Twitter), San Francisco-based Piva Capital, London-based LK Advisers, Boston-based Elephant and Frisco, Texas-based Blue Star Innovation Partners, which includes Dallas Cowboys owner Jerry Jones as a member.
While it may seem like these Orlando companies blew up overnight, that’s not the case, Ben Patz, managing partner of Orlando-based early-stage venture capital firm DeepWork Capital, told Orlando Inno. “This is the result of years of hard work, laying the groundwork for very talented companies to get funded locally. The credit goes to the entrepreneurs who built real companies.”
To that point, Adelson said the companies now pulling in big piles of capital all have been operating in the region for years. For example, the five companies previously mentioned are all at least 7 years old and have been in Central Florida since at least 2017.
In that same timeframe, regional efforts to bring innovation to the forefront of the economy have helped make it a more attractive place to invest, Adelson added. “Investment isn’t just in a company; it’s in an ecosystem.”
The red-hot year Orlando-area companies have had on the investment trail stands out across the country.
Collective investment into U.S. startups tapered from $95.4 billion in fourth-quarter 2021 to $70.7 billion last quarter. National Venture Capital Association CEO Bobby Franklin previously called the first quarter of 2022 an “expected adjustment” after record venture capital investment across the U.S. in 2021.
However, investment in the region isn't slowing. The local investment boom is far from a flash in the pan, Patz said. “The Florida market still has a number of opportunities. There are opportunities here for good investments.”
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