The startups that survived 2020 are probably looking to the new year with hope — it couldn't possibly be any worse. But for others, the pandemic year wasn't a disaster, but rather an opportunity seized.
Coronavirus curtailed investments for a period of the pandemic, tempering deals and threatening rounds that either closed prematurely or paused temporarily. But plenty of Greater Washington’s startups brought in new funding in 2020, reinforcing the strength of the region’s ventures and signaling positive momentum for 2021.
Some of the largest rounds happened in the latter half of the year, including those of D.C. legislative and regulatory dashboard FiscalNote Inc. with $160 million; Gaithersburg biopharma Sirnaomics Inc. with $105 million; Falls Church cybersecurity firm Deepwatch with $53 million; Rockville cloud management startup CloudBolt Software with $35 million; Potomac home improvement company Curbio Inc. with $25 million; Silver Spring fintech startup TrueBill with $17 million; District ed-tech startup ClassEDU with $16 million; and D.C. regenerative medicine company Cyrano Therapeutics with $14 million.
That roster built upon other major deals this year, including several more in the third quarter alone.
But now, we’re digging into some of the smaller raises that, too, deserve our attention. We’re not listing every round; rather, we’re recapping and reflecting on some of the year’s interesting and noteworthy efforts — because for these companies, this capital translates to big growth.
Bark Social: The beer garden doubling as a dog park, planned for North Bethesda’s Pike & Rose, raised a $1.5 million seed round in February. Investments came from honorary co-founder and board member Arie Abecassis; Clint Smith, founder of Emma; Nick Stafford, CEO of Ollie Pets; Dr. Sindy Goodman, COO of a dental service organization; Peter Gudmundsson, a pet services entrepreneur; and Dr. William Bush, founder of a veterinary neurology/neurosurgical practice with five locations in Maryland, Virginia and Georgia. Bark Social co-founders Luke Silverman, CEO, and Jeff Kurtzman, president, bootstrapped the business initially and started fundraising in fall 2019. And the timing only benefited the partners, as canine ownership shot up during the pandemic. Initially targeting a December 2020 opening, the company has pushed that planned debut to 2021. That's because Covid delayed the permitting process and caused supply shortages and construction delays, according to the company.
Wellfound Foods: The D.C. company creating “smart fridges” — prepared food-filled vending machines — set out to raise $450,000 earlier this year, and made it about halfway by October. Founder and CEO Sarah Frimpong pivoted to this aspect of her business after revenue took a huge hit along with the hospitality industry, where its wholesale distribution provides grab-and-go foods and snacks. The fresh funding will help fund new kiosks in health care facilities, academic institutions, office buildings and transportation hubs. And it precedes a planned Series A round on the horizon.
MPower Financing: The D.C.-based student loan startup received $115,000 from Halcyon Angels, a new network of early-stage investors under the social entrepreneurship nonprofit’s umbrella. That was the icing on the cake of $9 million MPower raised in June from a slew of investors, bringing its total funding to date to just shy of $30 million. It marked a new investor for the company and the Georgetown angel group’s third investment — which will go toward automating more of the startup’s loan application reviews. MPower also plans to double its 50-person team in the next year, after launching in 2014. It now works with more than 350 colleges and universities to provide loans to students from more than 200 countries, amounting to about $2 billion in loan applications on its platform.
Soupergirl: The 12-year-old veggie-based soup company raised its first funding round in September in the form of $2 million. The Series A round was led by Chevy Chase-based Arborview Capital. But it also involved two well-known names in the local business community: Danielle Vogel, founder of Glen’s Garden Market, where Sara Polon has sold her soups; and Honest Tea founder and Beyond Meat board member Seth Goldman, a mentor of Polon’s for about a decade. The capital will support digital marketing and strategy, as well as increased safety measures to protect staff and customers from Covid-19.
Babyscripts: The District maternal health startup took in $4 million in December from a network of health systems including Phoenix, Arizona-based Banner Health; York, Pennsylvania-based WellSpan Health; and the Froedtert & the Medical College of Wisconsin health network — all existing Babyscripts customers. Some funding also came from CU Healthcare Innovation Fund, part of the University of Colorado’s Anschutz Medical Campus. The company, whose obstetrics platform connects pregnant women with health care providers, is seeing greater demand this year as patients and providers alike increasingly turn to telemedicine. The new financing allows the business to speed up its work in value-based care, partner with more insurance companies across the U.S. and develop new products.
Aperiomics: The Sterling biotech closed a $1.8 million Series A raise in 2019. But more interest meant more capital, so the startup reopened the round and secured another $1.2 million in December, bringing its total to $3 million. That funding came from Greenville, South Carolina-based VentureSouth, which led the round, plus Houston, Texas-based Pipeline Angels; Atlanta Technology Angels; Danville, Virginia-based The Launch Place; Austin, Texas-based Central Texas Angel Network; and high-net-worth individuals. It’s also not done. The Loudoun company is now raising a $1 million bridge note to fund operations ahead of a planned Series B round. Naples, Florida-based Tamiami Angel Funds has already put in $300,000 toward the note and some Aperiomics executives will also invest. Aperiomics’s technology pinpoints causes of unsuccessfully diagnosed chronic infections. And it’s simultaneously expanding its testing capabilities to detect Covid-19.
MarginEdge: The Fairfax startup, whose restaurant management software digitizes bookkeeping for restaurants, nabbed $4 million in November from venture firm Osage Venture Partners, which led the round. Relish Works, the innovation hub for Gordon Food Service, also invested. The company plans to use the funding to support sales and marketing, continue developing its software and explore opportunities for expansion. It brought MarginEdge’s total funding to more than $15 million since its 2015 launch — and it's done so, it’s worth noting, as the restaurant industry continues to feel the wrath of the health and economic crisis.
