Austin Weekly Deal Activity
July 5th, 2021
If you build it, they will come. “They” being the investors, and “it” meaning the major company building activity over the past decade. Not just Austin this week my people, we saw deals getting knocked out all over the state. A couple major early-stage rounds and a casual 9 figure exit from the state capitol, PE giant Thoma Bravo with a major acquisition out of Houston, and then heaps of activity out of DFW. That’s my kind of fireworks show!
Thank you to this week’s Company Spotlight, HPI Tenant Advisors!
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Austin Financing Activity
Babson Diagnostics, a diagnostic blood testing technology company, raised a $31M Series B led by Emerald Development Managers with participation from Prism Ventures and Lago Consulting Group. This brings Babson’s total funding to nearly $45M.
Sevco Security, a cloud-native security asset intelligence platform, announced its launch alongside a $15M Series A round led by SYN Ventures this week. The round also had participation from .406 Ventures, Accomplice, Bill Wood Ventures, and fama Ventures.
SeekOps, an emission and leak detection technology company focused on the renewable energy sector, closed a $14M Series B round led by Schlumberger with participation from Caterpillar Venture Capital Inc.,Equinor Ventures, and OGCI Climate Investments. SeekOps, a spinoff from NASA’s Jet Propulsion Laboratory, plans to use the funding to scale its drone-powered onshore and offshore services.
Austin M&A Activity
Myriad RBM, Developer of molecular diagnostic tests, was acquired by Q2 Solutions, a subsidiary of IQVIA (NYS: IQV), for an undisclosed amount. The company was previously acquired by Myriad Genetics (Nasdaq: MYGN) for $80M in 2011.
SparkCognition, an Austin-based AI company, announced it has acquiredMaana, a Palo Alto-based digital knowledge platform. The financial terms of the deal are not available. Spark Cognition has raised $163.6M in funding to date and provides AI solutions for defense, oil and gas, financial services, and other large industries.
Other Texas Deal Activity
TPG, a Fort Worth and San Francisco-based private investment firm, led the largest funding round raised by a US edtech company, a $300M equity investment in Age of Learning, a Los Angeles-based company best known for its ABCmouse software. This round brings Age of Learning’s total funding to $481.5M. This also comes as TPG is eyeing options to go public, at approx. $10B.
Alto, a Dallas-based ride-hailing platform, closed a $45M Series B round led by Tuesday Capital and Goff Capital with participation from Franklin Templeton among other investors. This bring’s Alto’s total funding to $60M.
Simpli.fi, a Fort Worth-based programmatic advertising solutions company, has received an investment from Blackstone. Although the specifics of the deal were not disclosed, the deal gave the company a nearly$1.5B valuation. The investment allows Blackstone to join GTCR as majority shareholders of the company.
Complexity Gaming, a Frisco-based esports company, has been acquired in a $27M all-stock transaction by GameSquare(GSQ.CN), a Canadian esports company. The Jerry Jones Family and Goff Capital, both shareholders in Complexity, are investing an additional $8.5M CAD into GameSquare.
Bloom Health Partners, a Dallas-based developer of custom health solutions for workforce safety and healthcare preparedness, reached a definitive agreement to be acquired by Maitri Health (CNQ: MTEC) for $25M.
Hunt Perovskite Technologies, a Dallas-based solar cell tech developer which is a part of Hunt Consolidated, merged with 1366 Technologies, a Massachusetts-based solar wafer manufacturer, and has received $25M in funding from Hunt Consolidated’s energy-focused investment arm, First Solar, and Breakthrough Energy Ventures.
Spectral MD, a Dallas-based wound-treating technology company, has begun trading publicly on the AIM market, London Stock Exchange’s market for small and medium-size growth companies. The move generated gross proceeds of $16M off a valuation of over $100M, leading to net proceeds of a little more than $13M.
UpEquity, an Austin-based mortgage platform which expects to originate more than $700M in mortgages this year, appointed Andy Pruitt as CTO. Pruitt was previously CTO at OppLoans and co-founded Backstop Solutions. UpEquity has more than tripled its headcount from 15 to 65 since a $25M funding round in February.
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