With 33 venture capital deals worth a combined $150 million, according to PitchBook data, Virginia had a relatively slow third quarter this year. In Q3 last year, startups in the commonwealth raked in $214 million, one of its biggest quarters for early stage investments in recent history.
The low deal volume follows a national trend of fewer, larger venture capital deals for companies, which are taking on high valuations earlier than in the past. Central Virginia kept on that trajectory in Q3, with just a handful of multimillion-dollar deals making up most of the term sheet total.
Here's a roundup of the top funding and acquisition deals in the region last quarter.
Funding & Grants
Henrico-based food product manufacturer Nutriati raised about $4 million in a funding round that started in May, according to SEC filings. The company processes plant-based foods like chickpeas into powders and other products used by other manufacturers. Founded in 2013, Nutriati moved out of the Virginia Bio+Tech Park and closed a $9 million equity round last year, which included an investment from NRV.
Charlottesville-based energy tech startup TwinThread came out swinging this quarter with at least $3.2 million raised in an equity round. SEC filings say the company was founded this year and the raise is ongoing. TwinThread's machine-learning software analyzes industrial equipment linked to the Internet of Things, like wind turbines or boat engines, finding ways to improve efficiency for manufacturers.
The National Science Foundation awarded a $3 million grant to a team of faculty women leaders at VCU that it will use for the recruitment, retention and advancement of STEM female faculty across the university. The university exceeds the national averages for STEM women across several measures, according to NSF data, and is among the most diverse higher-education institutions in Virginia, measured by student demographics.
Richmond-based Outdoor Access raised $2.5 million in an angel investing round, according to PitchBook. The 2-year-old company's online platform allows property owners to rent out land for hunting, fishing and hiking. It previously raised $1 million in a June 2017 venture round.
Small business grant organization GO Virginia has injected three more programs with a combined $4 million in capital. As part of that, $1 million went to Lighthouse U, a new project by Lighthouse Labs and VCU's innovation hub, the da Vinci Center. The project will begin this fall and is designed to train and support entrepreneurial college students in Virginia.
Chesterfield-based health tech startup Grenova raised $550,000 from six investors in a funding round of up to $1 million. The company makes devices that reduce waste in medical labs with a focus on sustainability. It was founded in 2014, and this appears to be its first foray into outside funding. Included in the deal was Richmond's Trolley Ventures, marking its second investment.
Acquisitions
Richmond's 9-year-old frozen yogurt darling sweetFrog traded hands for $35 million, marking a solid exit for its owner, local PE firm Boxwood Partners. Boxwood bought a controlling stake three years ago from founder Derek Cha. The buyer is Kahala Brands, which also owns Cold Stone Creamery, Baja Fresh and Blimpie.
A biotech startup born out of UVA in 2015, TypeZero Technologies, was acquired by a behemoth. California-based Dexcom, a multibillion-dollar glucose monitoring company, took ownership of TypeZero for undisclosed terms. The startup is developing an artificial pancreas for diabetes patients, and plans to double its staff. It was a portfolio company of the Center for Innovative Technology.
Two-year-old Henrico startup Legacy Navigator expanded its footprint north with the acquisition of Haverton, Pa.-based Moving Solutions. Legacy Navigator helps seniors and their families handle estate disposition, and Moving Solutions helps seniors move into assisted-living facilities or downsize.
