Local startups got red-hot on the fundraising trail last quarter.
Metro Orlando companies raised a combined $315.6 million from investors in the second quarter, according to data released by PitchBook and the National Venture Capital Association on July 14.
Not only was Q2 venture capital investment up 650% from Q1, but Q2’s $315 million is the most money Orlando companies have raised in a single quarter since at least Q1 2014, the oldest data available from PitchBook and the NVCA.
Let's put it another way: Last quarter, metro Orlando companies nearly raised as much money from investors as they did in all of 2021 ($361.6 million).
The historic quarter was driven by several blockbuster deals. Here’s a look at the biggest investment deals last quarter, according to the report:
- Mosyle Corp.: The Winter Park-based mobile device management firm raised $196 million in a Series B round.
- ThreatLocker Inc.: The Maitland-based cybersecurity company closed a $100 million Series C round to fund new hires, expansion of its office and product enhancements.
- Leasecake Inc.: The Winter Park-based business landed a $12 million Series A round that’s expected to help Leasecake double its headcount to 66 people by fall 2023.
One notable deal was not included in PitchBook and NVCA’s report. Orlando-based cyber firm Fortress Information Security LLC raised $125 million from Goldman Sachs Group Inc. The funds will help Fortress expand its work with U.S. military customers, Peter Kassabov, co-founder and executive chairman, previously told Orlando Inno.
Investment activity also was up on the Space Coast in the second quarter. Companies in the Palm Bay metro raised $59.9 million from five deals, up 35% from the $44.3 million raised in Q1.
The report did not record any startup investment deals in the Daytona Beach metro last quarter.
The historic venture capital deal flow witnessed in Orlando last quarter is distinct from what happened across the country. U.S. companies raised $62.3 billion in Q2, down 24% from Q1 and a 23% drop from Q2 2021.
Record inflation and concerns of a looming recession hang over the U.S. economy. Still, PitchBook and the NVCA report there’s $230 billion in dry powder waiting to be deployed into companies.
“There are still uncertainties as to what to expect in the second half of the year, however, market indicators show resilience to weathering the potential economic downtown,” PitchBook founder and CEO John Gabbert said in the report.
Meanwhile, sky-high valuations across the country continue to come down, and some entrepreneurs should be prepared for investment to be tougher to come by, said J.P. Morgan Commercial Banking Head of Venture Capital Coverage Pamela Aldsworth. ”If the next few months are as quiet as we anticipate, founders will need to make some tough choices to preserve runway.”
These trends are important, as venture capital funds 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.
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