In Q1 venture capital deals, medical technology, software and energy technology brought funds to the DMV
At the end of the first quarter, it looks like DMV funding deals are off to a good start.
PitchBook and the National Venture Capital Association today published their Q1 2022 Risk Monitor report, which measures the main trends and offers in the United States. For DC Metro, it looks like last year’s momentum is continuing, though it may be too soon to tell if it will outpace the funding explosion of 2021.
In the first quarter of 2022, companies in the District of Columbia raised $331.23 million, spread across 31 deals. It’s almost a lookalike for the first quarter of 2021, which saw $346 million across 32 deals. This similarity is particularly significant considering that a few deals typically close after the quarter and are excluded from this list.
Given the similar numbers, it’s hard to say what 2022 will bring. Last year, the first quarter was only half the size of the first two quarters, the second and third quarters, which recorded more than $600 million each. But it nearly doubled in size in the fourth quarter.
The metropolitan statistical area around the district also showed consistent performance, with a first-quarter tally of $1.778 billion from 94 deals. This is only slightly higher than the $1.329 billion reported in the first quarter of 2021, incorporating 106 deals. Additionally, the interim quarters showed comparable numbers, with silver ranging from $1.1 billion in the fourth quarter of 2021 (with 95 transactions) to $1.504 billion in the second quarter (with 89 transactions).
Whether or not the patterns will repeat is still unclear. In January, however, experts were optimistic about the potential for 2022 after DC’s biggest year in venture capital. Tom Weithmaninvestment director at Virginia Innovation Partnership Society (formerly CIT), called the funding trends a “new normal” that is expected to continue this year. Joseph Barliasenior partner at local startup funder Revolutionit is Rise of the Rest Seed Fundadded that he believed 2022 would remain strong, potentially doing even better than 2021.
“Needless to say, I’m optimistic about the growth of DC’s startup and venture capital ecosystem in 2022,” Barlia said at the time.
So who took gold for the top funds brought into the region in Q1? Here are the top 10 deals of the quarter – which included some companies rooted outside the region, although why they made the list is unclear. Therefore, take their inclusion with a grain of salt:
- Bored Ape Yacht Cluban NFT market, raised $450 million, valuing the parent company Yuga Laboratories at $4 billion. A big caveat here, though: the company doesn’t appear to be headquartered in the DMV, but in Miami. This could distort the data.
- somatusa kidney-care company in McLean, Va., took second place with its oversubscribed $325 million round. Wellington Management spearheaded the funds, which will be used to expand the company’s care model. This pushes the company’s valuation to over $2.5 billion.
- Almaa French buy-it-now, pay-later company raised $131m in February. Reuters investments declared by the Chinese conglomerate Tencentas well as the French public bank Bpifrance. It’s also not clear why this one is on the list, so again, it could skew the data.
- Interosthe Arlington, Va.-based software company, which debuted unicorn last year, raised $126 million in January.
- Energy technology company based in Reston, Va. GridPoint landed $75 million last month in a raise led by Goldman Sachs‘ Sustainable Investment Group. With the funds, the company plans to add 100 new members to the team.
- Real estate technology company Curbio secured $65 million in investments led by Revolution Growth. Since its inception in 2016, the company has raised $93 million in total.
- virtuousa DC cybersecurity firm, raised $60 million in January with plans to double its headcount.
- Federated Wirelessa shared spectrum and CBRS company in Arlington, closed $58 million in a Series D of Cerberus Capital Management. It plans to use the money to simplify the purchase and deployment of its wireless networks.
- A few months after its $20 million Series A, the Arlington cyber company Shift5 raised $50 million in a Series B deal.
- SuccessKPI, a SaaS analytics platform for contact centers and SMS, raised $33 million. The deal brings its aggregate value to $105 million.