The coronavirus pandemic may have caused businesses to pivot, or slow down, or even shutter in 2020. But despite the challenges, plenty of local businesses were still able to secure funding.
The Tampa Bay region raised $185.64 million across 41 deals in 2020, according to the latest Pitchbook and National Venture Capital Association report. While it's a slight dip from 2019's $198.5 million, it brings a large jump from 2018's $129.4 million raised. In 2020, the state as a whole received $1.8 billion across 286 deals.
While the funding number was steady, the region's deal count was the lowest it has been since 2015, according to local data given to Tampa Bay Inno. In 2015, there were 40 funded deals totaling $84.8 million. In 2019, the funding spanned 57 deals and in 2018 it ran across 45 deals.
As a whole, the U.S. hit a record-high with $156.2 billion, according to Pitchbook. But like the Tampa Bay region, the number of deals across the nation declined slightly, with 12,254 companies raising capital last year compared to 12,285 receiving just over $138 billion in 2019.
When the pandemic hit in March, startups and investors alike braced themselves for impact. However, due to a decline in in-person meetings and travel, coupled with working from home, many found themselves with more flexible time to pursue funding.
"I am surprised at the pipeline," Kathy Chui, a managing partner for Orlando-based Deepwork Capital, said during a Tampa Bay Inno panel. "For a while I thought it would stall, when entrepreneurs would think 'What's my story now?' but by April it came back with a vengeance and because it's all remote, a lot of limitations got removed."
However, the beginning of the year in Q1 before the pandemic hit proved to be the standout of 2020: According to Pitchbook, over $87 million was raised across 13 deals. In Q2, that number dipped significantly, with $17 million raised across six deals. However, it managed to rebound to $45.6 million in Q3, ending on solid ground of $35.3 million raised by Q4.
The region's biggest deals included Tampa cybersecurity company ReliaQuest raising $300 million in August, St. Petersburg-based cybersecurity services firm Deepwatch raising $53 million in October and Peerfit, the Tampa-based digital health startup, raising $10 million in January.
A list of the other large deals in the Bay region include:
• St. Petersburg's IMCS Group, which offers behavioral health therapy program for those in workers' compensation programs, received an $8 million Series A funding round in July. It later received a follow-on investment from a subsidiary of The Hartford Financial Services Group in November.
• Telepathy Labs, a Tampa-based IT company, raised $6.6 million in July backed by 89 investors.
• Cirkul, a Tampa-based company that creates and sells patented cartridge and water bottle systems, raised $6.6 million.
• Immertec, which offers medical training through virtual reality, raised a $6 million round in July. It was an extension on a Series A round the company previously raised in October 2019, bringing the total to $12 million.
• Abacode, a Tampa cybersecurity and compliance firm, raised $4.8 million in January from local firm Ballast Point Ventures.
