The D.C. tech startup ecosystem stayed hot as summer came into full force and Q2 came to a close.
In June, at least 11 startups in the metro area raised a combined $142 million in funding, overtaking May’s healthy haul of about $118 million.
Making up most of the total were two mega deals in healthcare and cybersecurity: MedImmune spinoff Viela Bio closed on $75 million of funding to accelerate the launch of its main drug candidate, and Expel notched a $40 million Series C round to expand its cloud monitoring services.
D.C.-area investment groups got in on the game, too.
Frequent unicorn backer Proof.VC has launched a second fund, aiming to exceed its previous $35 million total, and local venture capitalist Justin Label is launching a $2.6 million fund backed by former Tenable CEO Ron Gula and Bloomberg's venture arm.
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Here are the D.C. startups that raised capital in June:
Gaithersburg biotech company Viela Bio just closed on $75 million of funding, giving it a total haul of $350 million since launching just 16 months ago. With its funding, clinical studies and partnership in place, the company could earn FDA approval to commercialize the drug in six months and get it to patients by early next year.
Herndon-based cybersecurity firm Expel nabbed $40 million in a Series C funding round. The raise was led by global investment firm Index Ventures, with participation from Battery Ventures, Greycroft, NEA, Paladin Capital Group and Scale Venture Partners. To date, the startup has secured a total of $67.5 million in funding. It plans to use the capital to expand its cloud monitoring capabilities, accelerate product innovation and fund additional sales and marketing programs.
NowSecure, which bases most of its operations in Vienna, Va., raised $15 million in a Series B funding round as it becomes one of the major players in the niche of app security. The round was led by ForgePoint Capital and brought its total raised to $27 million, following a $12.5 million funding effort in December 2014. The funding will accelerate NowSecure’s product development and help to scale its business operations, according to the company.
Baltimore-based Whitebox, an e-commerce and fulfillment tech startup, closed a $5 million Series A financing round led by TDF Ventures. Merkle CEO and Chairman David Williams joined previous investors, including Millenial Media's Chris Brandenburg, that partook in the round. Whitebox plans to use the funding to grow its customer base, hire key experts, invest in sales and marketing and open additional U.S. fulfillment centers.
Arlington-based tech startup Fonteva raised $3.9 million in funding from 20 investors, according to SEC filings. The company makes software for membership and events based on the Salesforce platform. The new capital adds to a recent hot streak for Fonteva, which surpassed 200 customers and nearly doubled its staff last year.
The iCON app, which teaches business skills through games, has grown to $125,000 of revenue in Q1 this year and recently closed $1 million of a planned $1.5 million seed round. A Series A funding effort will follow next year, according to the Washington Business Journal. The app will be available to those born after 1995, starting in Q3 this year.
Intellispark, a Mclean, Va.-based edtech company, reported raising $1.5 million in new equity funding. The company uses a variety of data to help identify potential problems and find ways to address them. This appears to be the first reported fundraising for the company, which was founded by Shaun Fanning and Stephen Smith.
D.C. startup juice maker Caribé Juice has pivoted toward more traditional vegetable and fruit juices as it prepares to launch in Walmart and Costco. The company secured $300,000 in commitments toward a goal of $1 million in bridge funding, and aims to raise $3 million in Series A funding later this summer. The bridge funding will go toward marketing for the new juice line, which is set to launch alongside its July 27 Walmart debut.
Bethesda-based Green Generation's venture arm has invested in Senseware, a Vienna, Va. energy company that services the private equity firm's offices. The firm invested $150,000 as a convertible note and might invest further in a Series A funding round. GreenGen is an energy provider and Senseware creates wireless facility management systems with a focus on environmental impact. The investment will go toward marketing and product development for Senseware's third generation of products. Read more here.
Arlington-based ThreatConnect, maker of a cybersecurity threat intelligence platform, nabbed a growth investment led by Providence Strategic Growth. The startup launched its platform in 2014 and has since grown to more than 1,600 corporate clients worldwide. The new funding is earmarked for accelerating ThreatConnect’s go-to-market strategy, supporting further software development and building its customer and partner lists. To reach those goals, ThreatConnect plans to increase its staff by more than 50 percent over the next year.
JMI Equity has made a "significant investment" in Dulles, Va.-based tech firm Unanet, an enterprise resource planning provider. Financial terms weren't disclosed, but according to the companies, the funding will allow Unanet to consolidate its leadership position in project management and ERP software. It plans to enhance its database software to more thoroughly serve its 1,200 clients in several industries, including government contractors, architecture and engineering firms and consultants.
Honorable mentions:
Reston-based Proof.VC — which has invested in billion-dollar unicorns such as Bird, Casper Sleep and Beyond Meat – is raising a second fund, having so far secured at least $4.4 million, according to SEC filings that list no ceiling for the raise. A source told the WBJ that Proof is aiming to raise more than its $34.5 million first fund. Since its founding in 2015, its local investments have included Arcadia Power and Sweetgreen.
Local venture capitalist Justin Label is formalizing his habit of cyber and tech investing by launching a $2.6 million venture fund. The Inner Loop Capital Fund, backed by former Tenable CEO Ron Gula and Bloomberg venture fund Bloomberg Beta, plans to make eight seed investments primarily in the D.C. area in the next 18 months. It already made investments in District-based GreyNoise Intelligence and West Coast startups Tall Poppy and Crosschq.
Arlington Capital Partners, a Chevy Chase, Md.-based private equity shop, raised $1.7 billion for its fifth fund. With Fund V, Arlington Capital plans to continue investing in aerospace and defense, government services, technology, healthcare and business services. The 20-year-old investment group has completed about 90 acquisitions over its history, most recently Intellectual Technology Inc. and Octo Consulting.
