Minnesota startups brought the heat during the first month of summer. June's largest deal belongs to Relievant, a medical-device startup that raised $58 million and announced plans to move its headquarters to Bloomington later this summer.
Last month also brought major acquisition news, with University of Minnesota spinoff Flipgrid announcing that it had been purchased by Microsoft. This was Microsoft's first acquisition of a Minnesota startup.
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FUNDINGS
HabitAware and Civic Eagle Backed by Backstage Capital
- Minneapolis-based HabitAware and St. Paul-based Civic Eagle received funding from Backstage Capital, a Los Angeles, California-based venture capital firm that has been making headlines nationally for its focus on investing in minority entrepreneurs. The exact amount of the investments were not disclosed, but Backstage typically invests anywhere from $25,000 to $100,000 in its portfolio companies.
Bind Benefits
- Health insurance startup Bind Benefits landed another $10 million in funding and partnered with UnitedHealthcare as part of a national expansion plan. Earlier this year, Bind raised a $60 million Series A round.
Structural
- Structural, a software startup led by tech veterans Scott Burns and Chip House, closed on $2.5 million to fund growth efforts. Investors in the round include the Rise of the Rest Seed Fund, which recently established a presence in Minneapolis by bringing on Mary Grove on as partner. High Alpha, Matchstick Ventures, The Syndicate Fund and Great North Labs also participated.
Relievant
- Medical-device company Relievant announced in late June that it planned to move its headquarters from California to Minnesota after closing on a $58 million Series E round of funding. The company makes technology that treats lower back pain by destroying a nerve embedded in the vertebrae. Relievant’s latest equity round was led by Endeavor Vision, a European investment firm. The company's previous investors also participated.
Vergent Bioscience
- Vergent Bioscience, a biotech startup that aims to make it easier for physicians to see cancerous tissue during surgery, raised $8.7 million to fund clinical trials. New York investment firm Spring Mountain Capital led the Series A round of funding.
ACQUISITIONS
Flipgrid Acquired by Microsoft
- Microsoft acquired Minneapolis-based tech startup Flipgrid, an education-technology platform, for an undisclosed amount. As part of the deal, Microsoft will start offering Flipgrid free for schools, and customers who already paid for a subscription will receive a prorated refund. Microsoft will retain Fliprid’s operations in Minneapolis. This is Microsoft's first acquisition of a Minnesota startup.
MyAlerts Sold to Private Equity Firm
- Tech startup MyAlerts, which lets consumers track products online and receive notifications of price drops and other changes, was sold to private equity firm Think3 for an undisclosed amount. MyAlerts is currently led by local serial entrepreneur Doug Berg. As part of the deal, Austin, Texas-based Think3 said its founder, Andy Tryba, will take over as CEO of MyAlerts.
