The D.C. region’s startup investment scene has seen a strong 2019, although it’s not yet clear if it beat out its rigor from 2018. Despite a strong Q2, D.C. was generally in line with the rest of the country in having slower VC movement in the first and third quarters.
That’s not to say that the DMV didn’t have some impressive deals this year. The year saw at least three deals of $100 million or more. While last year DC Inno noted eight deals with a cutoff of $30 million, this year we’re featuring 11 deals at more than $50 million. The companies with the big paydays comprise a wide range of sectors, including media, biotech, manufacturing, quantum computing, cannabis and more.
Here are this year's top announcements, drawing from Crunchbase and DC Inno's coverage.
1. CuriosityStream: $140 million
Silver Spring, Md.’s CuriousityStream raked in $140 million in February from investors Blum Capital Ventures and TimesSquare Capital Management. Led by Discovery, Inc. founder John Hendricks, the streaming service lets viewers stream thousands of documentary shows and films about science, nature, technology and other topics. The company has more than 1 million subscribers at the end of last year and recently launched an on-demand partnership with Mexican cable TV provider Totalplay.
2. Bioenergy DevCo: $106 million
Bioenergy DevCo is a Columbia, Md.-based firm that develops and maintains facilities that use anaerobic digestion to dispose of organic waste. Anaerobic digestion is a process that breaks down biodegradable material and is considered cleaner than incineration and other disposal methods. The company earned a $106 million investment in August from Newlight Partners LP.
3. MPOWER Financing $100 million
Based in D.C., MPOWER Financing bills itself as one of the only student loan providers catering to international students in the U.S. and Canada, a group that isn't usually afforded the same kind of financial aid attention as citizens. The fintech company works with more than 350 universities in North America and also provides students with career support and personal finance education. MPOWER got $100 million in debt financing from Goldman Sachs in August, for a total of $200 million.
Arcellx, a biotech company based in Gaithersburg, Md., raised $85 million in Series B funding in October led by Aju IB and Quan Capital, with participation from nine other entities. The young firm is focused on fighting cancer by developing and testing proprietary treatments that it says can fight the disease effectively and safely. Although cancer is the initial focus, Arcellx says it hopes to soon extend its therapies to a broader range of diseases.
QOMPLX rebranded from its former name, Fractal Industries, in July when it announced $78.6 million in Series B funding led by Cannae Holdings and Motive Partners. The Reston, Va.-based company provides data analytics software that lets customers streamline multiple data sources into a single platform. Its Q:OS uses artificial intelligence to present customers with indicators on its cybersecurity, financial and insurance data.
Before its October IPO, Viela Bio had a $75 million Series B funding round in June, which brought it to over $300 million in venture capital funding. The biotech company based in Gaithersburg, Md. and is focused on treating severe inflammation and autoimmune diseases. Namely, Viela Bio has been developing its Inebilizumab product to treat neuromyelitis optica spectrum (NMOSD), a rare disease characterized by an inflammation of the optic nerve and spinal cord.
Based in Herndon, Va., HawkEye 360 uses its constellation of commercial satellites to conduct data analytics on radio frequencies down on earth. Its technology maps sources of radio emissions so that customers in defense, telecommunications, crisis response and other areas can gain insights and respond accordingly. The company raised $70 million in its Series B round in August, which included Aerospace giant Airbus.
IonQ works on quantum computing software that it says can help developers build more powerful applications. One of the few D.C.-area companies working on quantum computing technology, its approach earned it a $55 million Series B backing in October. The raise included funding from Samsung, Google, Amazon and other notable names. The College Park, Md. company says that its “trapped ion” approach can ensure reliable, scalable quantum technology.
9. Holistic Industries: $55 million
Potomoac, Md.-based holistic industries is one of the D.C. area’s foremost companies focusing on cannabis products. The company raised $55 million in venture funding in October and now operates in D.C., California, Maryland, Massachusetts, Michigan and Pennsylvania. Holistic caters to the medical and recreational sides of the cannabis world through two brands: Liberty Cannabis and Strane.
Xometry initially announced its Series D round in May at $50 million, led by Greenspring Associates. In July, Robert Bosch Venture Capital added $5 million to the pot. With its proprietary AI and a network of 3,000 facilities around the country, the Gaithersburg, Md. company provides custom manufacturing services. Customers can send in designs and order a physical product using Xometry’s 3D printing, sheet metal fabrication, injection molding, die casting and other services.
11. Federated Wireless:$51 million
Arlington, Va.-based Federated Wireless raked in a $51 million Series C in September for a total of $120 million in funding. The company maintains a swath of radio spectrum that it allocates to customers in order to enhance their wireless services. In September, the company deployed deployed a network carrying Citizens Band Radio Service (CBRS). The company said it will put the funding toward expanding the service, which is being used by companies in the telecommunications, energy, hospitality and other sectors.
