While it’s probably a little too early to start on roundups and kudos to the biggest trends in the area for 2021 as a whole, venture capital is continuing to make a splash in the DC region.
As we reported earlier this year, DC has already having a massive year when it comes to venture capital, with $1.27 billion raised in the second quarter alone. And it seems like Q3 is giving it a run for its money (pun intended), with a huge week for DC-area startups and growth companies. Keeping on trend with what may be the biggest year ever for VC in DC, it’s really only Wednesday and DMV companies have raised over $200 million, plus a monster of a new VC fund. Here’s more.
Arcadia closes Series D
DC renewable energy technology company Arcadia announced Wednesday that it raised $100 million in a Series D funding round led by Tiger Global Management and the Drawdown Fund.
Wellington Management, Reimagined Ventures Camber Creek, MCJ Collective, and existing investors Energy Impact Partners, G2 Venture Partners, Inclusive Capital and BoxGroup also made an appearance in the round. This follows a $21 million Series C-1 raise in December, previously kept under wraps, and a $30 million fundraise in late 2019. The new funding brings Arcadia’s grand total to $180 million raised to date since its launch in 2014.
It continues a banner year for Arcadia, which entered new markets and acquired two companies: Texas-based Real Simple Energy and Nanogrid.
It has also expanded the leadership team, adding CFO John Rucker and Chief Data Officer Nancy Hersh.
“For years, utility customers have lacked data and clean energy access because of the monopoly structure. Access to energy data is a critical tool in helping customers navigate rapid electrification in sectors like transportation and home energy generation and storage,” said Kiran Bhatraju, CEO and founder, in a statement. “This latest validation from our investment partners will enable us to continue to break down the long-existing barriers to cheaper, cleaner energy and better advocate on behalf of customers in our confusing and fragmented energy market.”
The fresh funding, Arcadia said, will be used to boost its technology roadmap, add product capabilities in new markets like electric vehicles and distributed energy (think rooftop solar). It’ll also be hiring and scaling its community solar projects, in which groups of residents and businesses go in on a solar build.
ID.me raises another $100M
Just a few weeks after we sat down with ID.me CEO Blake Hall to check in on the company’s post-unicorn status life, the McLean, Virginia-based identity network announced Wednesday it landed $100 million in debt financing. The money is courtesy of Fortress Investment Group funds and $20 million in revolving credit.
To be clear: This is the second time the company has raised $100 million this year, following the March Series C round that vaulted it to a $1.5 billion valuation.
Hall said that this new financing will be used to help solve the “multiple password problem” (you know, where you have five variations of the same password for different sites). With the new funding, he said, ID.me will be working on developing one trusted login to verify identity, so users don’t have to make a new password for every new site.
“One of our missions for the past year has been to help states get individuals the benefits they deserve while battling massive identity fraud,” said Hall, in a statement. “Not only are we streamlining an inefficient process, but we’re also giving individuals full control of their personal data, which is currently scooped up by data brokers. In short, we’re creating the identity layer of the internet.”
With this new announcement, ID said it also reached the milestones of 60 million members, hiring over 1,300 employees in 2021 and a 420% increase in hospitality and travel revenue.
The company has also added three executives: CFO Rajat Bahri, Chief People Officer Kevin Lyons and VP of Engineering Alexei Czeskis.
QED Investors closes billion-dollar fund
In money that we’ll likely see returning in future Money Moves columns, Alexandria, Virgina-based, fintech-focused venture capital firm QED Investors just closed its seventh fund, featuring capital commitments of $1.05 billion.
Known as Fund VII, the money will be used for a $550 million early-stage fund and a $500 million growth-stage fund. Primarily, it will be put back into fintech companies in the US, UK, Latin America and Southeast Asia markets.
QED cofounder Nigel Morris said that the close of the fund is a signal of how much fintech has boomed over the past year. According to QED, $105 billion was invested into fintech globally in 2020.
“Fund VII is the largest proof point we have that proves that our model is working,” said Morris in a statement. “Throughout the past year and a half, we have seen a significant step function to digital financial services as consumers, SMBs and institutions recognize that fintech is not just a fad. We’re seeing positively selected inbound deal flow on a massive scale now from pre-seed to growth-stage companies. With our growing brand backed by an ever-expanding team that’s willing to play the full 90 minutes, we’re perfectly positioned to seize this momentum and add incredible value.”
Since its founding in 2007, QED has felt some fintech success in its investments. To date, it has funded over 150 companies, 20 of which are unicorns, with $3 billion under management. This includes some big players like Nubank, AvidXchange, Remitly and household name Credit Karma.
Here are some other massive (but not quite megaround) raises happening this week:
- Chinatown-based fintech and supply chain company Sayari Labs announced a $40 million Series C raise on Tuesday, led by Centana Growth Partners. Arsenal Growth, MissionOG, Lavrock Ventures, TFX Capital and SAP NS2 also participated in the round. The funding, Sayari said, will be used to continue global expansion efforts, as it currently offers services and insights for markets worldwide.
- Fairfax, Virginia-based restaurant management platform MarginEdge raised an $18 million Series B round led by Schooner Capital, with participation from Osage Venture Partners, Gordon Food Service’s Relish Works and Nigel Morris. As it wraps up the year, MarginEdge said it’s on track to see 200% growth year-over-year by the end of 2021.
- Led by the MemorialCare Innovation Fund, Georgetown-based obstetrics virtual care platform Babyscripts raised $12 million in a Series B round. The funding will help the startup roll out its Babyscripts Virtual Maternity Care solution, and further develop its mental health care and substance use products, plus additional infrastructure.
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