Another month, another robust amount of funding flowing to D.C.-area entrepreneurs.
The strong influx of capital to the region’s startup ecosystem continued in June, including rounds of great size and consequence: $60 million that made District data intelligence firm Morning Consult the latest local unicorn and just as much funding for fast-growing McLean kidney care provider Somatus Inc. for the second time in a year.
We saw several other D.C. ventures scoop up new financing: a data engineering company with $32 million, an ed-tech startup from one of Blackboard’s original employees with $10 million, a biotech making a medical device for vertigo with an investment from Mark Cuban and a personal assistant startup with backing from a Black-led investment firm’s first fund.
Local venture capital firms, too, are looking to raise new funds as the pandemic eases up, some focused specifically on founders otherwise overlooked by the venture capital world.
And finally, there are the homegrown businesses with multiple massive rounds under their belts, now taking their chops to the public arena — exactly what drives investors to reinvest their returns.
Related: Where the money went through February, April and May.
Here are more local companies that raised in June:
- Localized Inc.: The D.C. career tech startup, led by founder and CEO Ronit Avni, said June 15 it raised $2.2 million in seed funding. Investors include Trend Forward Capital, One Planet VC, Angel Ventures of Mexico, Next Wave Impact, Bisk Ventures, Joshua Mailman and angel investor Esther Dyson, among others. The company, a Halcyon incubator alum, has a platform that connects talent from emerging markets with industry experts and prospective employers.
- Veralox Therapeutics Inc.: The Frederick biotech said June 16 that it raised $16.6 million in a Series A round led by Hatteras Venture Partners. Genesys Capital, Point Field Partners and Alexandria Venture Investments participated, as well as existing investors Sanofi Ventures, JDRF T1D Fund, Maryland Momentum Fund, VTC Innovation Fund and TEDCO. The 3-year-old company, which develops drugs for unmet medical needs, also tapped Bristol-Myers Squibb alum Dr. Michael Hanna as its new chief medical officer. Veralox, led by co-founder and CEO Jeffrey Strovel, is now preparing to kick off clinical trials for its lead product candidate.
- CarrTech LLC: The Montgomery County medical device startup closed a seed round in June, including a $200,000 investment from Old Line Capital Partners. The company raised a total of $500,000, including two separate investments from TEDCO, said CarrTech founder Sue Carr. The company, also led by CEO John Nowell, is now eight months into preparations for a submission to the Food and Drug Administration, and expects to seek regulatory approval for its device in the first quarter of 2022, Carr said. CarrTech is advancing a filter needle system that makes giving patients liquid medication via a needle safer and faster.
- Nexford University: The D.C.-based online university, led by founder and CEO Fadl Al Tarzi, raised $10.8 million to scale its 2-year-old platform, TechCrunch reported June 10. VC Global Ventures of Dubai led the round, with participation from Future Africa’s new fund, angels, family offices and other unnamed investors, according to the report. The latest raise brought the company’s total lifetime funding to $15.3 million — and it’s now looking to triple enrollment from 2020, per TechCrunch. Nexford, licensed by the Higher Education Licensure Commission, aims to more directly align curriculum with workforce needs, including getting people ready for remote jobs.
- OxiWear: The Arlington startup, which makes a wearable oxygen monitor for patients with pulmonary hypertension like founder and CEO Shavini Fernando, is raising a $750,000 round and already has a lead investment of $100,000 from The Center for Innovative Technology’s GAP Funds program. The company put off this raise during the pandemic and is now shooting to close in August, Fernando said. That capital will fuel its growth, as it advances the device and targets a customer base of hospitals and pharmacies. OxiWear’s earpiece monitors blood-oxygen levels and alerts the wearer when it drops and requires attention.
