Orlando startups ended 2022 strong, with $106.3 million in capital collectively raised in the fourth quarter.
Why this story matters: Venture capital activity funds companies as they scale up while also providing business expertise and industry connections through investors. That often means the creation of high-wage jobs and the development of more innovative products and solutions.
The amount of investment metro Orlando tech companies raised in Q4 was up 1,081% from $9 million in Q3 and down a slight 0.8% from $107.2 million in Q4 2021, according to a Jan. 12 report by PitchBook Data Inc. and the National Venture Capital Association.
The Q4 surge in fundraising means Orlando companies raised more capital in 2022 ($477.1 million) than 2021 ($418.5 million), according to the investment deals tracked by PitchBook and the National Venture Capital Association.
The report from the two organizations recorded three local venture capital deals with double-digit sums:
- Finexio: The Orlando-based accounts payable software company in October announced it raised $35 million in a Series B round.
- OneRail: A last-mile delivery and logistics platform, Orlando-based OneRail closed $33 million in a Series B round in November.
- Care.ai: The Orlando-based patient monitoring health tech firm raised $27 million in a deal announced in November.
Meanwhile, funding activity on the Space Coast fell from $5.3 million in Q3 to $2 million in Q4. Investment dollars also declined in the Daytona Beach metro, from $22.1 million in Q3 to $3.8 million in Q4.
These investment deals stimulate product development, job creation and other forms of growth at these companies. For example, Care.ai founder and CEO Chakri Toleti expects to scale his firm's local manufacturing operations and hire 100 people this year thanks to the new funds, while OneRail founder and CEO Bill Catania previously told Orlando Inno his company will add new features and create up to 50 jobs in 2023.
The year-over-year growth in local startup investment activity stands out from the national picture. Nationwide, companies raised $238.3 billion from 15,582 deals, down from $344.7 billion from 18,251 deals in 2021.
“Although earlier-stage deal activity and fundraising totals show remarkable resiliency in 2022, the overall slowdown in annual venture capital activity reflects the sizable headwinds presented by ongoing macroeconomic factors, rising interest rates and frozen avenues for startup liquidity,” PitchBook founder and CEO John Gabbert said in a prepared statement. “Unable to justify the sky-high valuations seen in 2021 and retreating from the ‘growth-at-all-costs’ mindset seen in recent years, many investors are pulling back until the ecosystem returns to a more palatable normal.”
For more insight on the 2023 fundraising environment, check out these Orlando Inno stories:
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