As 2018 comes to a close, we wanted to take a look at the stories that mattered this year in Richmond tech. Here are some of the biggest headlines from this trip around the sun.
SweetFrog Sold to Private Equity Group for $35M
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 was MTY Food Group, which also owns Cold Stone Creamery, Baja Fresh and Blimpie.
Amazon Picks Northern Virginia’s Crystal City and New York City For Split HQ2
At long last, Amazon chose Northern Virginia’s Crystal City for half of its second headquarters, which it says will bring $2.5 billion in construction investments and about 25,000 jobs to the D.C. metro area. Virginia and Arlington will host 4 million square feet of office space for Amazon, with the opportunity to expand to 8 million square feet, and an estimated incremental tax revenue of $3.2 billion over the next 20 years, according to the company.
As far as incentives, Amazon said it would receive a workforce cash grant from the Commonwealth of Virginia of up to $550 million over the next 12 years.
Here’s what D.C. tech leaders said about the deal. And here’s another roundup on area founders’ thoughts on the upcoming talent influx.
PepsiCo Acquires Richmond Food Startup Health Warrior
PepsiCo swooped into the River City in 2018 to acquire plant-based food startup Health Warrior. Founded in 2011, the startup uses “superfoods” like chia and pumpkin seeds as a base in snack bars, protein powder and muffins. The deal is PepsiCo’s first investment under “The Hive,” a division of the company created this year to grow small brands focused on emerging trends. Health Warrior’s products are now sold at more than 12,000 retailers in the U.S., but could extend beyond the snack bar category following the acquisition.
Trolley Ventures Launches as Richmond's Newest Venture Capitalist
Trolley Venture Partners, a local investment firm created this year to back promising ventures in Central Virginia, closed its first fund in June with $4.2 million in the bank. Just weeks after, it made its first investment – in Richmond-based augmented reality startup ARtGlass – followed by deals with Richmond's Grenova and Digital ReLab. Trolley plans to have a second closing for its initial fund by yearend, for up to $10 million total.
Evatran Acquisition Deal Falls Through; CEO Departs
One of Richmond's most promising tech startups, Evatran, saw its fortunes reversed earlier this year when its deal to be acquired by Chinese conglomerate Zhejiang VIE Science & Technology fell through. The stumble by Evatran, which makes wireless chargers for electric cars, was amplified by co-founder and CEO Rebecca Hough leaving the company around the same time, reportedly for a job at Tesla. The startup was founded in 2009 and has raised at least $7 million in funding, and early VIE deal documents valued it at $12.5 million in early 2018.
1717 Innovation Center Launches in Shockoe Bottom
Capital One-funded startup hub 1717 Innovation Center opened its doors in March, establishing one of Richmond's most entrepreneurially focused buildings. It hosts incubator Startup Virginia, a nonprofit that has added scores of companies to its membership list, as well as Capital One offices. Several startup events have filled 1717 in 2018 as well, including Richmond Inno's August Inno-troduction event.
