Around the start of 2021, I began to hear a common theme in conversations with St. Louis startup founders. They told me it was becoming easier to connect with and attract funding from coastal investors.
We dove into that trend in a February cover story that detailed how having a startup’s headquarters in St. Louis didn’t seem to matter as much to investors based in venture hubs like Silicon Valley and New York. That’s because in the virtual world of the pandemic, the ZIP Code of a company’s headquarters matters less than it ever has.
St. Louis isn’t the only city to experience an influx of coastal investment dollars for its startups. A report published this month by Washington, D.C.-based venture capital firm Revolution notes the amount of investment funneled to San Francisco Bay area-based startups “has been on a steady decline.” Revolution’s report found that Silicon Valley investors have provided more than $13 billion in investment this year to companies located beyond the technology hubs of the Bay Area, New York and Boston.
“In each of the past two years, at least $11 billion of Bay Area capital have been invested outside of the three major ecosystems. A decade ago, in 2011, that figure was well under $3 billion. Deal volume is coming close to tripling, as well. Today, more than 1,000 rounds are done each year in outside ecosystems, compared to 383 rounds a decade ago,” the report said.
That reversal has been St. Louis’ gain, with the city ranking among the top 30 markets that have received investment dollars from Bay Area and New York-based venture capital firms in the past decade, according to Revolution’s report. That coincides with an uptick in venture capital funding for St. Louis startups in the same time period. Between 2011 and 2013, St. Louis startups raised an average of $39.2 million annually in seed, Series A and Series B funding rounds, according to data in Revolution’s study. That annual figure grew to an average of $95.4 million between 2018 and 2020. In 2021, it totals $247.1 million
Across all stages of funding, 2021 is shaping up to be a strong — and potentially record-setting — year for venture capital investment in St. Louis startups. Through the first three quarters of the year, St. Louis startups raised $374.9 across 44 deals, according to data from PitchBook and the National Venture Capital Association. Local firms raised $256.8 million for the quarter ended Sept. 30, the highest total of funding in a single quarter since local firms raised $302.7 million in the third quarter of 2018.
A pair of life science firms raised the largest funding rounds this year. Wugen, which is developing cancer-fighting therapies, closed a $172 million Series B round. Geneoscopy, which is developing diagnostic tools for gastrointestinal health, raised $105 million in financing. Additionally, St. Louis fiber infrastructure firm Arcadian Infracom said it inked a deal to secure up to $140 million in financing to move forward with construction of its first fiber routes.
Fittingly, all three of the startups’ funding rounds included investors from the coasts.
2021 Startup fundings
St. Louis biotechnology startup Wugen Inc. raised $172 million in Series B funding. The clinical-stage startup’s oversubscribed funding round was led by London-based life sciences investment firm Abingworth and Asia-based investor Tybourne Capital Management. New Wugen investors in the deal include Fidelity Management & Research Co., Intermediate Capital Group, Sands Capital, Aisling Capital Management, Alexandria Venture Investments, Velosity Capital and Falcon Edge Capital. Existing investors, including St. Louis-based RiverVest Venture Partners, LYZZ Capital and Lightchain Capital, were part of the round. Pictured in Dan Kemp, CEO of Wugen
Wugen
Arcadian Infracom, a St. Louis-based fiber infrastructure firm, secured $140 million in financing to move forward with construction of its first fiber routes. New York-based financial services firm TIAA is making an equity investment in Arcadian that involves providing up to $140 million in financing. Pictured is Dan Davis, CEO of Arcadian Infracom
Courtesy of Arcadian Infracom
St. Louis startup Geneoscopy, which is developing diagnostic tools for gastrointestinal health, raised $105 million in financing. Lightchain Capital, the family office of Scottrade Financial Services Inc. founder Rodger Riney, and angel investor group NT Investments led the Series B funding round. The funding included a mix of equity and debt funding, Geneoscopy said. Others in the deal include St. Louis-based investors Cultivation Capital and BioGenerator as well as Morningside Ventures, Labcorp (NYSE: LH) and Innovatus Capital Partners.
Geneoscopy
Clinical-stage immuno-oncology startup Arch Oncology, which has its scientific research laboratory in St. Louis, raised $105 million in Series C financing. The round was co-led by investors Eventide Asset Management, Cowen Healthcare Investments and 3x5 Partners. The $105 million financing included several new backers of Arch Oncology. They include Adage Capital Management, Point72 Asset Management, Avego Healthcare Capital, FMB Research and Broadfin Holdings. Existing investors Roche Venture Fund, St. Louis-based RiverVest Venture Partners and Lightchain, the family office of Scottrade Financial Services Inc. founder Rodger Riney, also participated in the deal. Laurence Blumberg, president and CEO of Arch Oncology, is pictured.
JOYCEDAVID_MARR
St. Louis-based software startup Balto has raised $37.5 million in a Series B funding round it. New York-based investment firm Stripes, a new investor in Balto, led the financing. Another new investor in the round was RingCentral Ventures, the venture capital arm of Belmont, California-based telecom company RingCentral (NYSE: RNG). The financing also involved several existing investors, including St. Louis-based Cultivation Capital, Sierra Ventures, TIA Ventures, OCA Ventures, Stage Venture Partners, SaaS Venture Capital, Sandalphon Capital and Atreides Management. Marc Bernstein (pictured) is CEO of Balto.
Dilip Vishwanat | SLBJ
St. Louis biotechnology startup Pluton Biosciences has raised $6.6 million in seed funding to advance its product development efforts. Oakland-based venture capital firm Better Ventures led the round. Other investors include the Grantham Foundation, Fall Line Capital, First In Ventures, Wing Venture Capital and St. Louis-based Yield Lab Institute. Barry Goldman, founder and chief scientific officer of Pluton Biosciences, is pictured.
Pluton Biosciences
Rezilion, a cybersecurity startup co-headquartered in St. Charles and Israel, raised $30 million in Series A funding. Chicago-based Guggenheim Investments led the Series A financing. Other investors in the deal include Jerusalem Venture Partners and London-based Kindred Capital. Several industry experts also backed the round as angel investor, Rezilion said.
Getty Images
St. Louis-based PierianDx, which has developed genomics software aimed at helping health care groups improve medical care, raised $30 million in financing. New York-based health care investment firm OrbiMed led the startup’s funding round, which included equity investment and a term loan facility. Other investors in the deal included Health Catalyst Capital, Research Triangle Institute, Inova Health System, ATW Partners and SJF Ventures. Mark McDonough, CEO of PierianDx, is pictured.
PierianDx
SteadyMD Inc., a St. Louis-based telehealth startup, said Tuesday raised $25 million in funding. The Series B round was led by Lux Capital. Also participating were Ashton Kutcher, an actor who has invested in several other startups; Los Angeles-based Sound Ventures, a venture capital firm co-founded by Kutcher and talent manager Guy Oseary; and San Francisco-based Acrew Capital. Pictured is co-Founder and CEO Guy Friedman.
SteadyMD
St. Louis-based mortgage technology startup OptiFunder Corp. hopes to accelerate its rapid growth, raised $25 million in financing. Minneapolis-based Arthur Ventures, which backs business-to-business software companies, provided the funding for OptiFunder. Pictured is Michael McFadden, founder and CEO of OptiFunder.
Stephanie Cotta
St. Louis-based Hungry Planet, a startup that makes plant-based meats, raised $25 million in a Series A financing round led by one of the region's most prominent public companies. It closed the oversubscribed funding round led by St. Louis consumer packaged goods holding company Post Holdings Inc. (NYSE: POST). Singaporean investment group TRIREC and additional undisclosed investors also participated in the financing.
Hungry Planet
St. Louis advertising technology startup Advocado secured $10 million from investors. San Francisco-based investment firm Crescent Core Advisors led the financing. Other investors included the St Louis Arch Angels and Vest Coast Capital. Co-founders Jeff Linihan (left) and Brian Handrigan are pictured.
Dilip Vishwanat | SLBJ
Clever Real Estate, a St. Louis-based startup whose software platform connects sellers with local real estate agents, raised $8 million in Series B funding round. St. Louis-based Cultivation Capital led the financing, which included strategic investment from The Mortgage Collaborative Emerging Technology Fund of San Diego. Clever co-founders Ben Mizes (left) and Luck Babich are pictured.
Dilip Vishwanat | SLBJ
St. Louis-based app-making startup Adalo raised $8 million in Series A funding round led by New York-based investment firm Tiger Global Management. Adalo co-founders David Adkin and Ben Haefele
Adalo
St. Louis agtech startup CoverCress raised $8 million in funding. Bunge Ventures Ltd., the venture arm of St. Louis-based agribusiness and food company Bunge Ltd. (NYSE: Bunge), led the Series B-1 funding round. The financing also included participation from REG Ventures LLC, a subsidiary of biodiesel and renewable diesel producer Renewable Energy Group Inc. (Nasdaq: REGI). Mike DeCamp, president and CEO of CoverCress, is pictured.
CoverCress
St. Louis-based Deck Commerce, which provides order management software for consumer brands, raised $7.8 million in a Series A funding round. Ann Arbor, Michigan-based growth equity firm Plymouth Growth led the round. CEO Chris Deck is pictured.
Dilip Vishwanat|SLBJ
St. Louis-based real estate technology startup raised $7 million across two funding rounds in 2021. It most recently closed a $4 million Series A round. St. Louis-based holding company Hermann Cos., owned by the Hermann family, led the Series A funding round. Other existing investors in the financing include the National Association of Realtors’ investment arm Second Century Ventures, St. Louis Arch Angels and Ferry Ventures. The startup said the deal also included several new investors, including St. Louis serial entrepreneur Jim McKelvey. Transactly CEO Bryan Bowles is pictured.
Demin Social, a St. Louis startup that provides social media management tools for financial services firms, raised $5 million. FINTOP Capital, a venture capital firm based in Nashville with a St. Louis presence, and partner fund JAM FINTOP Banktech led Denim Social’s Series B funding round. Doug Wilber, CEO of Denim Social, is pictured.
Gremlin Social
St. Louis medical technology startup SentiAR, which develops visualization technologies for surgical use, secured $5.1 million in Series A funding.The oversubscribed financing round included investment from new backer TechWald Holding, which is based in Italy. Other investors in the round included St. Louis-based investors BioGenerator and Cultivation Capital as well as VCapital, Neue Fund, QRM Capital and Keiretsu Forum. Berk Tas, CEO of SentiAR, is pictured.
SentiAR
Atlas Digital Group, which provides e-commerce software for cable and fiber companies, has raised $3 million in a seed funding round. St. Louis-based Cultivation Capital led the round. Other investors included Jerry Kent’s technology investment and management firm Cequel III, Lubbock, Texas-based Vexus Fiber, Tom McMillin and Gregg Graff. Atlas Digital Group CEO Mark Mihalevich is pictured.
Hand-out
St. Louis-based startup Rezilient raised $2.5 million as it prepares to launch its first remote health clinics. New York-based Unseen Capital, which backs underrepresented founders and companies focused on serving marginalized communities, led the oversubscribed seed financing. Other investors in the round include Techstars, Headwater VC, The Council and The Living Fund. Photographed are co-founders Danish Nagda (left) and Jeff Gamble.
Dilip Vishwanat | SLBJ
St. Louis startup Curate, which provides software used by florists and caterers, raised $1.25 million from investors in a seed funding round. Chicago-based OCA Ventures led the round. Other significant investors in the deal include St. Louis-based Cultivation Capital, Stout Street Capital of Denver and serial St. Louis entrepreneur and Square co-founder Jim McKelvey. Curate CEO and founder Ryan O'Neil is pictured.
Ryan O'Neil
Impetus Agriculture Inc., a St. Louis-based agtech startup creating new insect control products, raised $1 million in equity financing. The St. Louis startup raised the $1 million in a seed funding round led by BioGenerator, the investment arm of local innovation hub BioSTL, and The Yield Lab. Other investors included the St. Louis Arch Angels, Centennial Investors, Missouri Technology Corp. and the University of Missouri Allen Angel Capital Education Fund. The startup has raised $2.3 million since its founding. Martha Schlicher, the company's CEO, is pictured.
BioGenerator
Scroll through the gallery above to see a full list of St. Louis startups that raised investment in 2021
