SSR - March 29, 2024
A recent article by PitchBook posits that 37% of first-time VCs will not be able to raise a second fund. The author says that the rush of first time VCs that appeared between 2019 to 2021 is just not sustainable. “2021 was the heyday for new entrants in venture capital: First-time fundraising reached a peak of $14.7 billion, including to more inexperienced managers without bulletproof track records or networks.” Pitchbook estimates that more than 247 first-time managers will not be able to raise a second fund.
Louisiana
Born in Baton Rouge by LSU grads, Mallard Bay secured $4.6M Million in Series A funding for its SaaS-enabled marketplace for hunting and fishing adventures. The funding comes after Mallard Bay has posted more than 600% booking growth year over year. The round was led by Soul Venture Partners, with follow-on investments from existing investor Acadian Capital Ventures and others. Check out this podcast to hear more about Mallard Bay's journey. New Orleans-based hospitality company Oyster Sunday has been named to Fast Company’s list of the World’s Most Innovative Companies of 2024. Founded by Elizabeth Tilton, Oyster Sunday is a “hospitality studio” for independent food and beverage businesses. Its second company, OS Benefits, the first affordable health insurance and wellness benefits marketplace made for the hospitality industry, grew out of the original concept. The Tulane University Innovation Instituteannounced the winners of its Demo Day pitch competition. Congratulations to Informuta for winning the first-place prize of $25K; EquallHealth in second place with $15K in funding; and Cantaloupe AI in the third-place spot, earning $10K. NO/LA Angel Network (NO/LAAN) announced that it has rebranded as the Gulf South Angels with an expanded focus across the Gulf South. After a decade of success, the group was recognized by the Angel Capital Association as one of the top 10% of active angel groups in North America. In Chaffe & Associate’s M&A news report, ChapterSpot, the leading provider of CRM and member management software for fraternal and chapter-based organizations, sold to Billhighway. ChapterSpot founders Joe McMenemon and Brendan Finke are Tulane and Idea Village alumni.
Alabama
Rev Birmingham announced a new Birmingham Open for Business micro-equity grant program, thanks to a $1M grant from the PNC Foundation. The program is available to all small businesses in Birmingham, with a focus on minority businesses and/or those centered in low- to moderate- income census tracts and business districts within the city. Alabama Launchpad just revealed the 9 startup selected for its upcoming pitch competition on April 18th. Read about the participating startups here.
Arkansas
Now this is too cute. The Venture Center is hosting Pitch ‘N Punch, a Shark Tank-inspired pitch competition for aspiring entrepreneurs in grades 5th-8th to showcase their business ideas. The participants will pitch their concepts to a panel of very brave judges for a chance to win up to $350. Learn more about the two scheduled summer pitches here. In Fayetteville, Startup Junkie was awarded a $1.13M contract to manage the Arkansas Statewide Technology Commercialization Center. The center, previously known as Innovate Arkansas, helps new tech entrepreneurs with turning inventions and high-tech concepts into viable businesses.
Florida
Big fund news today. First, Comvest Partners, a West Palm Beach-based middle-market PE and credit investment firm, closed its sixth flagship fund with $881M. The fund seeks to deploy up to $150M of equity per investment in targeted industries. Second, Borderless Capital, a Miami- based Web3 investment firm, announced that it has acquired CTF Capital, a quantitative trading and asset management company, for an undisclosed amount. Borderless Capital manages a family of 5 VC funds with more than $500B in assets. FAU Tech Runway accepted 13 companies to participate in the 13th cohort of its Venture Program. The year-long program offers intensive startup resources from FAU’s Innovation and Business Development pipeline. Read about the participating startups here. MyPrize, a Miami-based online crypto casino enabling novel multiplayer experiences, raised$13M over two rounds of financing at a $140M valuation. The rounds were led by Dragonfly and Boxcars Ventures.
Georgia
According to a new list by Homebay, Atlanta ranks #1 in the nation for starting a new business. Homebay writes, “Atlanta may be home to mega corporations such as Coca-Cola, Chick-fil-A, and Delta Air Lines, but young companies play a big role in Atlanta’s economic ecosystem. Over the past five years, Atlanta has the second-highest number of new business applications with 28.5 per 1,000 residents — nearly double the number in the average US city.” Atlanta also has a ton of great resources for startups. Hypepotamus just released a list of startup resources and accelerators in the area. Check it out. In funding news, after months of little investment activity, LeakSignal, Hatchworks, and Coker all announced equity raises this week.
Mississippi
Various CoBuilders accelerators around the state are now accepting applications from startups looking to scale. Apply here. Several Mississippi startups, including ppxTEC, LearnArena, MiCare Path, and CampusKnot pitched to investors from around the country at the 3rd Coast Venture Summitas part of New Orleans Entrepreneur Week on March 14th. They all did great! Up next: The SBIR/STTR Road Tour will make a stop in Jackson on April 4th to help connect innovators with federal funding. Register here.
North Carolina
Hosted by the North Carolina Biotechnology Center, which is celebrating its 40th anniversary this year, the biannual NCBiotech Venture Challenge is under way. There are currently 14 companies in the running, but only 5 will make it to the finals in late June. The competition is designed to spotlight startups NOT located in the RTP region. On June 27th, the 5 remaining teams will make their pitches for an additional $100K in funding at the statewide Venture Pitch Showcase. In other ESO news, NC IDEAannounced the 20 semi-finalists from across the state selected for its 37th SEED grant cycle. Read about the startups here. Next up: VentureConnect on April 4th in Wilmington. It should be a great event!
Tennessee
WavMaker, a Nashville-based provider of a music licensing platform for video creators, raised $5M in seed funding. The round was led by Vicky Patel. WavMaker is a music licensing platform with a catalog of music that is cleared for commercial use. Memphis startups, check out the upcoming $600K Memphis Mobility Innovation Challenge. Start Co. and Ford Motor Company are offering startups over $600k in mobility pilot grants, startup investment, and comprehensive support to innovative mobility solutions in Memphis. PYA announced the five startups to compete at the annual BallardInnovation Award on April 10. The $50K award is the largest gift of cash and in-kind services available to East Tennessee entrepreneurs. Those interested in attending can RSVP here. The Chattanooga Quantum Collaborative just launched. The non-profit organization aims to establish a comprehensive framework for workforce development, economic growth, and infrastructure advancement in the quantum technology sector.