Baltimore Money Moves: $440M for Dragos after Series D extension

Hanover-based industrial cybersecurity company Dragos secured an additional $74 million in a Series D extension, with leading support from growth equity firm WestCap. This follows Dragos’ initial $200 million Series D round in October 2021, which was spearheaded by Koch Disruptive Technologies and overseen by BlackRock. This extension elevates the Series D funding round to a total of $274 million, resulting in Dragos having raised approximately $440 million in total funds.

An acquisition in the cybersecurity industry

Columbia, Maryland-based cybersecurity company Sealing Technologies has been acquired by Virginia company Parsons Corporation, one of the country’s largest government contractors, in a deal worth up to $200 million. According to the Baltimore Business Journal, Parsons plans to leverage Sealing Tech’s expertise to enhance its artificial intelligence products, expand its government clientele and strengthen its position in the cybersecurity sector. Sealing Tech will function as a subsidiary under Parsons. 

Parsons acquired Sealing Tech for $175 million in cash, with an additional $25 million contingent on meeting 2024 revenue targets that Parsons expected to reach $110 million. Advisory support for Sealing Technologies came from Baltimore law firm Nemphos Braue LLC and Chesapeake Corporate Advisors.

Loyola invests in its Baltipreneurs

Loyola University Maryland’s Simon Center for Innovation and Entrepreneurship recently invested $40,000 from the Loyola Angel Fund between two Baltimore-based startups. The recipients of $20,000 each are Clymb, a youth mental wellness platform, and Los Hermanos Tequila, a small-batch tequila distillery. These investments mark the inaugural disbursements from the $250,000 charitable fund, which was established in 2021 to offer students angel investment expertise and support underresourced local entrepreneurs — particularly those who are Black, brown and women. Clymb’s CEO Ashley Williams was named “Culture Builder of the Year” in last year’s Technical.ly awards.

A community college and Comcast team up to support digital navigation

Community College of Baltimore County (CCBC) and Comcast recently partnered to launch the higher education institution’s Digital Navigator program. The initiative aims to connect more Baltimore-area residents, including CCBC students, to home internet access. It ultimately seeks to foster digital literacy, as well as device usage skills. Comcast’s $150,000 grant will fund the hiring and training of around 12 CCBC students to facilitate the program. Additionally, a limited supply of laptops from Baltimore County will be provided to disadvantaged students during the event.

A funding streak for a Black woman-led company

Femly, another Technical.ly Award recipient, has received multiple investments in a short period of time. TEDCO recently injected $250,000 into this tech company, which is committed to enhancing access to natural and organic hygiene products. This follows the company’s securing a $150,000 investment from the venture capital firm Fearless Fund back in August.

Other notable Money Moves in Baltimore:

• Linshom Management, specializing in advanced respiratory monitoring devices, recently secured $400,000 from TEDCO and $250,000 from the Abell Foundation in its Series A preferred equity round. To date, this Ellicott City startup has raised a total of $6.3 million, including through grants.
• TEDCO has invested $250,000 from its Social Impact Builder Fund into ARMR Systems, which is dedicated to developing hemorrhage control systems that enhance survival rates in scenarios lacking immediate advanced medical support.
• ReBokeh, a 2023 RealLIST Startup, has been awarded a $15,000 grant from the University System of Maryland (USM) Launch Fund, which is facilitated by the USM Foundation. This grant serves as a financial boost for early-stage entrepreneurs, providing access to essential resources, mentorship and capital so they can grow and innovate. Other recipients include The Cube Cowork
• Prewitt Ridge, a Los Angeles, California-based requirements management and digital thread company, has secured $4.1 million in a seed funding round led by Baltimore VC firm Squadra Ventures. The round featured participation from Stage Venture Partners, Aurelia Foundry, Wonder Ventures and other prominent investors. The raise will aim to accelerate the growth of Prewitt Ridge’s digital engineering platform.
• Columbia-based government software company GCOM has merged with Sacramento, California-area OnCore Consulting to enhance tax collection systems nationwide. According to the Baltimore Business Journal, with 1,300 employees — including 400 from OnCore — the combined entity becomes one of the country’s largest providers of state and local government software.
• Eldersburg, Maryland-based startup Celcy, which specializes in smart appliances for cooking automation, launched a Kickstarter campaign soon after its Towson University StarTUp Accelerator showcase on Sept. 14. Surpassing its initial goal of $25,000, the campaign has raised over $50,000 to date, according to the Baltimore Business Journal.
• According to a recent SEC filing, Elkridge, Maryland-HQed 2023 RealLIST Startup Backpack Healthcare (formerly Youme Healthcare) raised $1.55 million.