The region started the year strong with fundraising. And the pace only accelerated into spring — a trend mirrored across the U.S.
Nationally, venture capital investment dollars hit a new record of more than $62 billion in the first quarter through 1,735 deals across the country, according to a recent PwC/CB Insights MoneyTree report. The U.S. hit $130 billion in total funding during all of 2020.
On a local scale, March and April saw raises from several companies. Startups in the D.C.-metro area raised about $1 billion in the first quarter of 2021, according to data from PitchBook.
In the District, that included: student loan startup MPower ($5 million, after $25 million in January); insurance startup Pie Insurance ($118 million); storytelling startup MemoryWell ($2.5 million); coworking startup WorkChew ($2.5 million); and customer retention software firm ChurnZero ($25 million).
In Maryland, the list comprised: Gaithersburg cancer therapy company Arcellx ($115 million), neighboring biotech VLP Therapeutics ($16 million); and Bethesda sustainable food startup Eat the Change ($4.1 million).
And the Virginia contingent counted Falls Church prior authorization firm CMT Solutions ($10 million); Reston security software startup ThreatQuotient ($22.5 million); McLean identity management startup ID.me ($100 million); and Arlington meal delivery startup Territory Foods ($22 million).
More funding is coming. Chantilly’s TrueAlgae, Woodbridge’s Minwo, D.C.’s AbsoluteJOI, Alexandria’s True Made Foods and Bethesda’s BrainScope are all actively raising capital.
They’re not the only ones. Here are more notable raises that have joined our running roster in recent weeks.
- HawkEye 360: Herndon satellite technology company HawkEye 360, which provides radio frequency data to commercial customers, said April 12 it has raised $55 million in new funding. The Series C round, led by NightDragon, also included participation from existing investors Advance, Razor's Edge Ventures, Shield Capital, Dorilton Ventures, Adage Capital and Esri International. And the capital — which brings the company’s total to $155 million to date — will support HawkEye’s launch of three satellite clusters and development of other infrastructure and software for high-speed data processing.
- Cellphire Therapeutics: Rockville’s Cellphire Therapeutics Inc. announced April 2 the close of a $15 million Series A round led by Simcah Management. The company is entering phase 2 clinical trials for two blood-platelet products. And the financing positions Cellphire to accelerate their development, the company said. CEO Stephen Willard has also stepped away from the top slot and board, “in order to bring in a new CEO to take the company through its new phase of expansion and growth,” the company said at the time. Michael Gaffney, founder of consulting business Bancroft Group and interim CEO for 10 health care organizations, has since taken over as its new chief, Cellphire said April 20.
- iCE Neurosystems: D.C.’s iCE Neurosystems said April 13 it secured $2.95 million in a seed round from private investors. The neurotechnology startup, whose platform helps diagnose and prevent brain injury in critically ill patients, has raised $4.5 million to date. The fresh funding positions the company to speed up clinical adoption, scale commercialization, expand its big data tools and initiate a Series A round within the next couple of years, iCE said in its announcement.
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