Money Moves: Virginia nabs $230M to spend on local startups

Money Moves is a column where we chart the funding raises of tech companies across the region. Have a tip? Email us at dc@technical.ly.

Virginia has $230 million in federal funds for small businesses

The Commonwealth of Virginia is set to receive over $230 million in federal funding for its small businesses.

Of the $230 million, $57 million will go to Virginia’s Small Business Financing Authority to distribute the funds. State funding agency the Virginia Innovation Partner Corp. will receive $173 million to distribute to local startups, small businesses and organizations through its three programs.

The funding is part of the State Small Business Credit Initiative from the Treasury Department, which was expanded in the American Rescue Plan. In total, the initiative awards $10 billion to states across the US, and has awarded $6.3 billion so far. Maryland was awarded $198 million through the program earlier this year, and the $62 million that DC applied for is still awaiting approval.

AWS has funds for sustainable NoVa startups

Amazon Web Services (AWS), which is HQ’d in Herndon, Virginia, has launched a new community grant program to sustainability-focused individuals, nonprofits, schools, community groups and more.

The AWS InCommunities Sustainability Fund has $300,000 available to entities in Prince William, Loudoun, Fairfax, Culpeper and Fauquier counties in Virginia. The fund will be managed by ChangeX. AWS hopes to provide grants to 30 projects in Northern Virginia.

Grants up to $10,000 are available for new or existing community projects themed around sustainability and environmental stewardship. This includes the likes of agricultural preservation, cultural site preservation, sustainable tech, energy reduction and conservation, eco-friendly foods, and zero waste. Additionally, applicants can apply for funds to help introduce one of seven existing community programs to communities worldwide.

Applications are open now through Feb. 13, and applicants will be scored by positive community impact and funding criteria. If selected, they will complete a 30-day challenge for their idea.

MarginEdge raised $45 million

Restaurant tech company MarginEdge, which is based in Arlington, raised a $45 million Series C led by Ten Coves Capital. Fiserv, Derive Ventures and other previous investors in the company also participated in the round. With the fresh funds, the company will have raised $70 million in total.

MarginEdge developed a technology platform for that handles invoice processing, inventory management, recipe analysis, budgeting, performance tacking and bill payments to suppliers.

“Our North Star has always been empowering operators with technology and real-time data to make more informed decisions and getting them back to doing the part of the job they love,” CEO and cofounder Bo Davis said in a statement. “In the current environment, and with everything the restaurant community has had to navigate these last few years, this mission has never been more important.”

Here’s who else has money on the move:

• Fellow Arlington company Second Front Systems also had a successful week, raising $32 million in a Series A. Moore Strategic Ventures and AEI HorizonX co-led the round, with additional participating form ARTIS Ventures, 8VC, Gula Tech Adventures, Abstract Ventures, Pallas Ventures, Gaingels and Kleiner Perkins — all previous investors in the startup.
• DC private equity firm Arlington Capital Partners is selling Reston, Virginia govtech company Octo to IBM for an undisclosed amount. Octo now has almost 1,500 employees, and Arlington Capital has overseen four acquisitions by Octo.
• DC-based wellness marketplace SoHookd raised $1.35 million in debt financing, according to a Securities and Exchange Commission filing.
• Tysons, Virginia-based Acacia Group, an investment management group, acquired Arizona’s Isos Technology for an undisclosed amount.
• Empower AI, formerly known as NCI Information Systems, won a one-year task order to support the US Army. The year-long contract has a total value of $14 million with a one-year extension option.
• Thanks to a $50 million growth investment from Metalmark Capital, Germantown, Maryland biotech company Orgenesis will be opening a subsidiary, Morgensis, in Baltimore, Maryland. The investment was based on a $125 million valuation, and Morgensis will receive $30 million upfront and two $10 million investments later on.
• Alexandria, Virginia agricultural tech company Agrology raised an undisclosed seed round led by Active Impact Investments. Skyview Ventures and Phoenix Venture Partners also participated in the round.
• Fellow Alexandria company TransVoyant, which works in govtech, raised $2.95 million in an equity round, according to SEC filings.
• Chicago, Illinois private equity firm Sheridan Capital Partners has taken an ownership stake in DC’s ADVI Health. Terms of the deal have not been revealed.
• CareFirst BlueCross BlueShield invested $8 million in 19 organizations in the DMV. Funds from the grants will be put toward addressing COVID-19’s mental health impacts. The DC-area companies that received funds are as follows:
  • Association for the Public Defender of Maryland
  • Centro Hispano de Frederick
  • Sasha Bruce Youthwork
  • Supporting and Mentoring Youth Advocates and Leaders
  • Young Women’s Project
  • Whitman-Walker Health
  • Arlington Free Clinic
  • Pathway Homes
  • Pathways to Housing DC