SSR - June 21, 2024

Pitchbook published two exciting articles about AI in the last two weeks. The first finding is that VC funding for AI visual media has risen by 90% in Q1 of 2024. The second found that despite all of the hype around AI in the SaaS space, SaaS revenue growth is "in a rut." 

It will be interesting to watch how these two AI trends play out throughout the summer and into 2024. We'd love to hear your thoughts on the direction of AI in SaaS products or if you have firsthand experience running an AI-focused company.

This edition features some AI-based startups that are raising significant funds. In light of the AI discussion, we're highlighting a fun conversation around AI and its role in the future of southern startups. Check it out below. 

Louisiana

New Orleans-founded company Advano announced it would start production of its battery products in its pilot plant soon.

Meanwhile, Hydro Consultants, a Baton Rouge-based surveying company, was acquired by national consulting and engineering firm Atwell. 

Alabama

Congratulations to Hydralive Therapy, an IV therapy company based in Birmingham, on announcing a $2.2M growth equity round. Hydralive Therapy offers cryotherapy, vitamin injections, and compression therapy. 

Governor Kay Ivey announced that Innovate Alabama would receive $98 million to continue supporting LendAL and InvestAL, which focus on helping small businesses in the state. Alabama businesses that want to use the funding can learn more here. 

Arkansas

ACTIVE, a Little Rock-based healthcare accelerator, announced its 2024 cohort and kicked off its 2024 programming. 

Arkansas-founded Zips Car Wash announced a $70M investment from Atlantic Street Capital to continue growing its operations. Zips was founded outside of Little Rock and is headquartered in Texas. 

Florida

Congratulations to Miami-based FirmPilot, an AI-based legal marketing software, on closing a $7M venture round to continue growing its platform. 

Flordia also saw several later-stage financings with Insightec, a healthcare technology company focused on ultrasounds, raising $150M in equity financing. M2X, a Rockledge-based materials company, announced $40M in Series B funding. 

Florida also has two large credit facility deals. Pipe, a Miami-based financial services company, announced a $100M credit facility in partnership with Victory Park Capital. Meanwhile, GA Telesis, and aviation integration company, announced it had secured an increase in its credit facility, bringing that facility to $275M. 

Early-stage Florida companies also made news, with the Florida Early Stage Venture Summit awarding $300,000 in funding at its 2024 conference. Winners included Merritt Island-based X-Lumin, a telecommunications company, and Boca Raton software company HelixVM. 

Georgia

Congratulations to Retail Ready, a warehousing company based out of Atlanta, on announcing a $3.3M seed financing round. 

Also based in Atlanta, Pull Logic, an inventory management solution, announced is had secured $200K in seed funding from Silicon Road Ventures, Fintech Ventures Fund, and Pax Momentum.

Mississippi

The Stennis Business Council NOAA Forum highlights the National Oceanic and Atmospheric Administration in Pearlington, MS, on July 31. The forum will feature presentations featuring small business specialists from federal organizations.  Join the discussion here. 

North Carolina

North Carolina saw two major Series B funding rounds and significant financing. Relay, a Raleigh based communications platform, closed $35M in Series B funding with participation from Wind River Ventures and Sovereign's Capital. Meanwhile, Levee Medical announced a $10M Series B financing for its urologic scaffold technology. Advanced Medicine Partners also announced a $32M financing agreement with Deerfield Management to fund its research on advanced therapy products. 

South Carolina

Connexus, an RFP platform based in Murrells Inlet, announced it secured $800K in seed funding.  Middleburg Communities and several other notable startup founders led the round. 

Charleston-based tech company Blackbaud also made news when it turned down a $4.3B buyout proposal from its biggest investor. 

Tennessee

Congratulations to Workweek, an insights and workplace media company based in Chattanooga, on announcing a $12.5M Series A venture round led by Next Coast Ventures.

Memphis-based company AnyCreek announced a $1.8M seed round to help the company grow its guided experiences platform. a 

 Agyl AI announced it had secured lead investment from CommerceNext to launch its newest software upgrade, EKOM 4.0.