BostInno
Funding Update: Biotech Leads the Way as 44 Startups Raise Over $1 Billion in May
By: Srividya Kalyanaraman
Another month, another roundup.
May was an active month in Boston startup land where 44 startups raised over a billion dollars in venture capital. Of note, cancer detection startup Thrive Earlier Detection Corp. raised $110 million in Series A funding, ElevateBio raised $150 million and mobile network company Altiostar’s $114 million Series C.
Venture capital firms raised a significant sum as well – Pillar, an early-stage venture firm based in downtown Boston, raised a new $100 million fund. Over the next two and a half years, it plans to invest in 20 or so companies in the artificial intelligence, machine learning, blockchain and hardware spaces.
Miraki Innovation and Auris Health founder Christopher Velis announced the launch of his third fund: the $175 million Medical Technology Breakthrough Fund to support medtech innovation.
TechU raised its first dedicated $10 million venture capital fund. It plans to invest the money in “deeptech” entrepreneurs worldwise. TechU has previously invested in Bevi, ReviveMed, and other startups.
Alumni Ventures Group, a Manchester, N.H.-based VC firm with an active office in Post Office Square, has created a new initiative called 10,000 Entrepreneurs, or 10KE and filed the arm for nonprofit status. 10KE’s first program is a grant-based initiative that awarded 20 undergrads a total of $50,000.
Boston-based Bain Capital is seeking to raise $1 billion for a new private equity fund, named Bain Capital Tech Opportunities, that will target acquisitions and minority investments in enterprise software and cybersecurity companies.
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Below are the startups that raised capital in April:
Biotech
Late-stage venture Boston MicroFluidics raised $17.6 million in a funding round, according to a Form D filing.
Boston-based Mellitus, which is working on new methods of diabetes detection, raised $2.8 million in a funding round, according to a Form D filing.
Cambridge biotech firm Axcella Health raised $71 million in an IPO of 3.6 million shares priced at $20 each. Flagship General Partners, Fidelity, and Nestle Health Sciences back the firm. Goldman Sachs, J.P. Morgan and SVB Leerink are underwriters.
Cambridge microbiome startup Vedanta Biosciences raised $45.4 million in a $50 million funding round, according to an SEC filing.
Watertown-based Twentyeight-Seven Therapeutics, which focuses on the modulation of RNA to treat cancer and other human diseases, raised $15 million in a Series A extension, bringing the startup’s total financing to more than $80 million. European life sciences VC firm Sofinnova Partners led the extension.
ElevateBio closed out its Series A round at $150 million, co-led by the UBS Oncology Impact Fund managed by MPM Capital and F2 Ventures and joined by EcoR1 Capital, Redmile Group and Samsara BioCapital.
Translate Bio, an mRNA therapeutics company based in Lexington, raised $47.5 million in a funding round, according to an SEC filing.
Somerville clinical-stage microbiome company Finch Therapeutics raised $23 million in a funding round, according to an SEC filing.
Biofourmis closed $35 million in Series B financing, co-led by Sequoia India (part of Sequoia Capital) and MassMutual Ventures Southeast Asia. Singapore government-linked strategic investor EDBI and Chinese online healthcare platform Jianke also participated in the round, along with existing investors Openspace Ventures, Aviva Ventures and SGInnovate.
CardioFocus, a Marlborough-based biotechnology company focused on the advancement of ablation treatments for cardiac disorders, raised $8 million in a $12 million funding round, according to an SEC filing.
Scipher Medicine, a Boston-based biotechnology company applying network medicine to complex diseases, raised $20 million in a funding round, according to an SEC filing.
Kytopen, a startup working on gene-modified cell therapies, announced it has raised $3.6 million in seed financing from The Engine, Horizons Ventures, and angel investors. An SEC filing indicates its total offering was $4.35 million.
Waltham-based medical device company SpectraWAVE raised $16.4 million in a funding round, according to an SEC filing.
Cambridge-based cancer detection startup Thrive Earlier Detection Corp. officially launched with $110 million in Series A funding, led by Third Rock Ventures with participation from with Section 32, Casdin Capital, Biomatics Capital, BlueCross BlueShield Venture Partners, Invus, Exact Sciences, and others.
GV‘s investment in Verve Therapeutics brought the startup’s Series A fund to $58.5 million.
Childcare
CozyKin, a Boston-based childcare provider that claims to be the largest infant childcare service in Massachusetts, raised $6 million in Series A funding.
Chemicals
North Andover-based Amastan Technologies, which produces ceramic, metal, and composite materials, raised $11 million in a Series B-2 funding round. The round was led by venture capital firm Anzu Partners and included existing investors Launch Capital, Material Impact, and RKS Ventures. This funding round follows Amastan’s initial $13.85 million Series B funding in Q4 2017.
Cybersecurity
Waltham cybersecurity company Dover Microsystems raised $11.8 million in a $13.4 million funding round, according to an SEC filing.
Boston and Israeli internal data center and cloud security company Guardicore raised $60 million in Series C funding. Qumra Capital led the round, joined by other new investors DTCP, Partech, and ClalTech. Existing investors Battery Ventures, 83North, TPG Growth and Greenfield Partners also participated.
Greentech
KnipBio, a Lowell startup creating sustainable fish feed, raised $879,000 in a $1.5 million funding round, according to a Form D filing.
Hardware
Tewksbury-based Altiostar, which designs equipment to deploy and expand mobile network operators’ LTE networks, raised $114 million in Series C funding with Rakuten coming on board as an investor. Qualcomm Ventures LLC and Tech Mahindra also participated in the C-round early last year.
Worcester-based Blustream Corporation, which manufactures wireless monitoring devices for high-value home items, raised $1.2 million in a $2 million funding round, according to an SEC filing.
Healthcare
Somerville startup Podimetrics, which has created a patient monitoring system to prevent diabetic foot ulcers, raised $13.4 million in Series B funding from investors Rock Health, Norwich Ventures, and Scientific Health Development.
Cambridge-based REBIscan, which is building technology to eliminate preventable vision loss in children, raised $7.5 million in an $8.6 million funding round, according to an SEC filing.
Boston health care analytics company BHE secured $78 million in funding. The investors were Silversmith Capital Partners and Leerink Transformation Partners.
Boston-based Mightier, which is creating a bioresponsive videogame platform, raised $7 million in a funding round, according to an SEC filing.
Medically Home Group, a Boston-based virtual health care startup, raised $10 million in a $25 million funding round, according to an SEC filing.
Marlborough-based medical device company CardioFocus raised $55 million in a funding round. Its current syndicate of institutional investors participated in the financing and included senior debt financing from Kennedy Lewis Investment Management.
Abacus Insights, a healthcare data integration company with operations in New York and Boston, closed a $12.7 million Series A financing round led by CRV with participation from existing investors .406 Ventures and Echo Health Ventures. Abacus Insights is growing its team in Boston.
HR Tech
New Life Solution, the legal name of Boston stress management platform meQuilibrium, raised $5 million in a $7 million funding round, according to a Form D filing.
Digital technical training startup Covalent Networks, based in Boston, raised $1 million in a funding round, according to an SEC filing.
InsureTech
Boston-based home insurance startup Openly raised nearly $7.7 million in a funding round, according to an SEC filing.
Nanotechnology
Nanoramic Laboratories, which rebranded from FastCAP Systems last year, raised $4.5 million in a $10 million funding round, according to an SEC filing.
Robotics
Boston-based health care technology company Pillo Health raised $11 million in Series A funding led by Stanley Black & Decker‘s corporate venture capital arm with significant participation from Samsung Ventures. BioAdvance, Hikma Ventures, Hackensack Meridien Health System’s Innovation Center Fund and Civilization Ventures also participated.
Pickle Robots, an MIT spinoff, is launching from stealth with $3.7 million in a seed round led by Hyperplane Ventures. San Francisco-based Version One, Data Collective, New York-based RRE Ventures, Third Kind Ventures and Box Group also participated in the round.
Software
Spiro Technologies, a software company aimed at helping salespeople close deals, is looking to raise $2.5 million—so far, it has raised just $951,000 according to a Form D filing.
Cambridge-based Pegasystems raised $1 million in a funding round, according to an SEC filing.
Robin Powered Inc, a local SaaS startup that helps companies coordinate workplace scheduling and manage meetings, raised $20 million in a Series B round led by Tola Capital. Existing investors, including Accomplice Ventures and FirstMark Capital, also participated.
Boston-based digital storage and media management company EditShare took on a majority investment from ParkerGale Capital. No financial terms were disclosed.
clypd, a Somerville startup creating a sales platform for TV advertising, raised $8 million in a $10 million funding round, according to an SEC filing.
PepperEdge, the company behind Pepperlane, raised nearly $4.6 million and is looking to raise $45,000 more in a funding round, according to an SEC filing.
Workflow automation platform Pliant, based in Boston, secured more than $2.5 million to exit stealth. The round was led by former SevOne tech startup executive Vess Bakalov, with participation from Newfund Capital, New Stack Ventures, Leading Edge, and other angel and family investors.
Machine data analytics platform Logz.io raised $52 million in Series D funding led by General Catalyst with participation from OpenView Ventures, 83North, Giza Venture Capital, Vintage Investment Partners, Greenspring Associates and Next47.
Sports Technology
Harvard Square-based Hydrow, a maker of connected rowers that allow users to digitally row with professionals, which raised $20 million in February this year, announced an expansion of its Series A to $27 million with investments from Green Bay Packers Quarterback Aaron Rodger’s Rx3 Ventures, The Raptor Group, The Yard Ventures and Wheelhouse Partners.
Video
Boston-based Unruly Studios closed a $1.8 million seed funding round, led by Portsmouth, N.H.-based eCoast Angels with participation from the Amazon Alexa Fund, AT&T, Rough Draft Ventures powered by General Catalyst, Techstars, LearnLaunch, NextFab and other New England Angel Funds. Unruly Studios is a 2018 Alexa Accelerator alum.
