The D.C. startup ecosystem cooled a bit as summer started to fade and Q3 came to a close.
In September, at least 11 startups in the metro area raised a combined more than $96 million in funding. It falls short of August's booming total, which reached $172 million.
Making up about half of the region's total funding last month was Federated Wireless, which took in a $51 million round as it rolls out its first commercial product.
D.C.-area investment groups got in on the game, too, with Revolution Ventures and Blue Delta Capital Partners both announcing funds over $150 million.
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Here are the D.C. startups that raised capital in September:
Federated Wireless secured $51 million in Series C funding, with contributions from existing investors Allied Minds, American Tower and GIC, Singapore’s sovereign wealth fund. New backers Pennant Investors and SBA Communications joined in on the deal. In late spring, Federated completed the roll-out of its network that enables commercial deployment of CBRS services across the U.S. following its FCC certification in April.
Bethesda-based Octopus, a rideshare entertainment platform, raised $13 million in an equity round, according to SEC filings. The startup places tablets inside of Uber and Lyft vehicles for riders to play a game to win cash – which it pays for by showing video ads. In April, CEO Cherian Thomas told Digiday that Octopus had an audience of 2 million passengers and more than 1,000 tablets sent to drivers per month.
Tysons-based internet service provider GiGstreem took in $10 million in funding to expand its reach into more of D.C. and other cities. The round was led by RET Ventures, which is backed by several large property companies, and included private equity firmLNC Partners. The company's fiber-optic and transmitter network has about 200 commercial customers, including Buzzfeed, The Guardian, Snapchat and WeWork.
Drone startup Skydweller Aero, based in Spain and Alexandria, Va., raised more than $10 million in an ongoing funding round that could reach $32 million. The raise, disclosed in SEC filings, appears to be the 2-year-old company's first. Skydweller is developing a solar-powered, unmanned plane capable of perpetual flight, building on the Swiss Solar Impulse project.
Reston-based Corvium has raised $6.7 million in an equity round capped at $15 million, according to SEC filings. The company, which began as a bacteria diagnostic system called Sample6, makes food safety software that tracks risks to avoid recalls.
D.C.-based cloud tech firm Thycotic Software raised $2.3 million in an equity deal, according to recent SEC filings. The added capital comes on the heels of two small funding rounds in the last two years, and brings its total raised to just under $10 million. Thycotic, founded in 1996, makes software for enterprises to manage passwords and permissions.
Localized, a tech platform connecting university students and alumni with employers in emerging markets, closed a $1.2 million round of funding. The startup, headquartered in D.C., launched in June 2017 and started its beta program last year, targeting top STEM and business-focused universities. The platform is live in the Middle East and North Africa, and it's expanding to India this year.
Little Sesame is looking to follow in the footsteps of Sweetgreen and Cava as it seeks capital to expand its fast-casual, hummus bowl chain. The startup has raised at least $1 million in a funding round capped at $5 million, backed in part by New York's M3 Ventures. It has two assembly-line-style restaurants open in D.C. so far, with plans for three to four more in the next 18 months.
Coding-education toymaker SmartGurlz is expanding its product line and entering new markets following a $525,000 crowdfunding raise. The Arlington-based startup, which appeared on “Shark Tank” in 2017, is keeping the raise going through yearend, adding to its $1.2 million raised last year and a $200,000 investment from Morgan Stanley’s 2019 Multicultural Innovation Lab.
The Herndon-based Center for Innovative Technology announced that its GAP Funds division invested an undisclosed amount in Arlington cybersecurity company Fend. Fend makes hardware and equipment-monitoring software for securing critical infrastructure, including utilities, governments and real estate. It plans to use the funds to scale its sales and delivery teams.
D.C. investment firm Enlightenment Capital took a stake in District-based Expression Networks, a defense contractor specializing in IT and electromagnetic spectrum engineering. The investment, for undisclosed terms, was among the first from Enlightenment's SBA-backed Small Business Investment Company fund.
Honorable Mentions
Revolution, a District-based venture capital firm led by AOL co-founder Steve Case, announced the close of its third Revolution Ventures fund with $215 million in the bank. The fund, one of three Revolution divisions, invests in early-stage companies outside of New York, Silicon Valley and other major U.S. tech hubs.
Blue Delta Capital Partners, an investment firm focused on government services companies, raised $150 million for its third fund. The McLean-based fund is unique among its locally based peers, in which it targets only companies that are headquartered locally, with a heavy emphasis on government services companies with $10 million in revenue and with a side interest in cybersecurity companies.
Two-year-old Gaithersburg biotech firm Viela Bio set the terms of its initial public offering. It plans to issue 7.5 million shares priced between $19 to $21 apiece, looking to raise about $150 million. Viela has said it plans to use the capital to get FDA approval for its first prospective product and to launch it commercially.
