NYC Startup Funding, Month-end Wrap-up: February 2019

February continued a solid start to the year for NYC-based startup funding. Below are five of the largest rounds of funding closed by NYC-based startups over the course of February 2019.

Aetion - $27M
Date: 2/5/19
Round: Series B
Industry: Healthcare, Enterprise Software
Lead Investor: N/A
Company: Founded in 2013, Aetion is a healthcare technology company that provides analytics and evidence for the improvement of patient care. The company's patented rapid-cycle analytics™ and the Aetion Evidence Platform™ deliver real-world evidence for life sciences companies, payers, and at-risk providers. To date, Aetion has raised over $74.6 million after three rounds of funding.

Chainalysis - $30M
Date: 2/12/19
Round: Series B
Industry: Fintech, Cryptocurrency, Financial Exchange
Lead Investor: Accel
Company: Founded in 2014, Chainalysis is a company designing and developing anti-money laundering software for Bitcoin businesses. According to Chainalysis, its products include, 'REACTOR, an interactive and investigation tool that identifies offenders, visualizes data, and shares results with people and organizations, and API, a transaction based risk scoring solution that contains source and destination of funds to measure risk.' To date, Chainalysis has raised more than $47.6 million after four rounds of funding.

VAST Data - $40M
Date: 2/26/19
Round: Series B
Industry: Data Storage, Software
Lead Investor: N/A
Company: Founded in 2016, VAST Data is an enterprise data storage infrastructure provider. According to VAST Data, their mission is to, 'bring an end to decades of complexity and application bottlenecks that have been caused by mechanical media and by the complex tiering of data across different types of storage systems.' To date, VAST Data has raised more than $80 million after three rounds of funding.  

HiberCell - $60.8M
Date: 2/7/19
Round: Series A
Industry: Biotechnology
Lead Investor: ARCH Venture Partners
Company: Founded in 2016, HiberCell is a biotechnology company specializing in the development of novel therapeutics to prevent relapse and metastasis. According to HiberCell, 'We are the first company exclusively focused on therapeutically modulating the biology and mechanisms of tumor dormancy.' To date, HiberCell has raised $60.8 million after one round of funding.

YieldStreet - $62M
Date: 2/26/19
Round: Series B
Industry: Fintech, Financial Services, Wealth Management
Lead Investor: Edison Partners
Company: Founded in 2015, YieldStreet is an investment platform allowing investors to effortlessly participate in curated investments with low market correlation and high yield, across litigation finance, real estate, and other alternative asset classes. To date, YieldStreet has raised more than $178.5 million after five rounds of funding.


NYC Startup Funding, Month-end Wrap-up: January 2019

2019 picked up right where 2018 left off for NYC startup funding. Below are some of the largest rounds of funding closed by NYC-based startups over the the last month.

Kustomer - $35M
Date: 1/24/19
Round: Series C
Industry: CRM, SaaS, Enterprise Software
Lead Investor: Battery Ventures
Company: Founded in 2015, Kustomer is a Customer Relationship Management (CRM) software company. Rather than focusing on tickets, Kustomer is a platform which allows users to focus on their customer service and customer relationships. To date, Kustomer has raised over $73.5 million after four rounds of funding.

The Farmer's Dog - $39M
Date: 1/15/19
Round: Series B
Industry: E-commerce, Pet Food Products
Lead Investor: Insight Venture Partners
Company: Founded in 2014, The Farmer's Dog is a high-quality dog food manufacturer that delivers healthy and balanced freshly made dog food. The Farmer's Dog uses only human-grade USDA ingredient and customized its meal plans for each dog based on their individual profile. To date, The Farmer's Dog has raised more than $49.1 million after three rounds of funding.

Stelexis Therapeutics - $43M
Date: 1/8/19
Round: Series A
Industry: Therapeutics, Healthcare
Lead Investor: Deerfield Capital Management
Company: Founded in 2017, Stelexis Therapeutics goal is to develop novel drugs and to utilize its proprietary platform of targeting per-cancerous stem cells in order to become the leading cancer therapeutic company in the world. To date, Stelexis Therapeutics has raised $43 million after one round of funding.

Andela - $100M
Date: 1/23/19
Round: Series D
Industry: Recruiting, Software, Training
Lead Investor: Generation Investment Management
Company: Founded in 2014, Andela aims to address the global tech talent shortage by recruiting Africa's top software developers. Over the past four years, Andela has hired more than 1,000 developers from over 100,000 applicants, and was also named the 'Best Place to Work in Africa'. To date, Andela has raised more than $181 million after six rounds of funding.

Infor - $1.5B
Date: 1/16/19
Round: Private Equity Round
Industry: Cloud Data Service, Enterprise, Information Technology
Lead Investor: Koch Equity Development and Golden Gate Capital
Company: Founded in 2002, Infor provides enterprise software and services worldwide. Infor is the largest privately held technology provider in the world and has acquired over 40 other software companies since its founding in 2002. To date, Infor has raised more than $4 billion in funding.


NYC-based Petal Raises $30 Million Series B

Petal, the NYC-based fintech startup offering credit cards to those just starting out, has closed a $30 million round of Series B funding.

A Peter Thiel-backed Venture

The round was led by Peter Theil’s Valar Ventures and will reportedly be used to expand the company's offerings and bring on more clients. Valar Ventures previously led Petal’s $13 million Series A almost exactly one year ago. To date, Petal has raised more than $80 million in debt and equity financing after five rounds of funding.

A New Approach to Consumer Credit

Unlike traditional banks which rely heavily on an applicants FICO score, Petal primarily considers an applicant’s income streams when determining credit worthiness. The goal of this method is to be able to approve more candidates, especially those without pre-established credit, and to grant candidates higher credit limits. As an added incentive, Petal’s model only charges interest and transaction fees, which allows it eliminate overdraft fees, late fees, international fees, and annual fees.

A Good Time to be in Fintech

The success of Petal can be seen as a reflection of a growing trend in successful fintech startups as the whole. According to CB Insights, fintechs raised a record $39.57 billion in funding last year. This number marks a 120% increase over 2017. In the last quarter of 2018 alone, five fintech startups achieve unicorn status.

Is 2019 the Year of Credit Card Startups?

According to Petal CEO and co-founder Jason Gross, “If you look at the projections for 2019, this is the year where the fintechs break out in the credit card category the same way fintechs revolutionized stock trading, banking, and personal lending. Before the days of Lending Club and Prosper banks controlled nearly 100% of the consumer lending market share. Now we see that online offerings make up 35% of the overall market.”

Petal, which is on the Visa network, typically charges between 15.24% to 26.24% interest with most card limits between $500 and $10,000. The average credit limit is reportedly a few thousand dollars.


NYC Startup Funding, Month-end Wrap-up: November 2018

 

While November did not see the monstrous rounds of funding so common over the summer, it nevertheless remained strong for NYC startup funding. Below are five of the larger rounds of NYC startup funding over the course of November 2018.

 

Force Therapeutics - $21M
Date: 11/7/18
Round: Venture Round (Series unknown)
Industry: Health Care, Mobile App
Investors: 1 - Insight Venture Partners
Company: Founded in 2010, Force Therapeutics is a company which provides mobile and web-based physical therapy videos and tutorials to its patients. The company allows physicians to work with their patients remotely in the comfort of their own home. To date, Force Therapeutics has raised over $25.7 million in NYC startup funding.

 

RapidSOS - $30M
Date: 11/6/18
Round: Series B
Industry: Public Safety, Mobile App, IoT
Investors: 8 - Two Sigma Ventures, The Westly Group, Ralph de la Vega, Playground Global, M12, Highland Capital Partners
Company: Founded in 2013, RapidSOS uses proprietary technology to integrate with 911 in order to analyze information as to when and where emergencies are occurring. RapidSOS then uses this data to alert people of situations in real-time so that users can safely avoid these areas. To date, RapidSOS has raised over $65.6 million in NYC startup funding.

 

Dynamic Yield - $38M
Date: 11/2/18
Round: Series D
Industry: Enterprise Software, Publishing, E-commerce
Investors: 4 - Viola Growth, Union Tech Ventures, Naver Corporation, Bessemer Venture Partners
Company: Founded in 2011, Dynamic Yield helps marketers increase revenue by automatically personalizing each customer interaction across web, mobile apps and email. Dynamic Yield's AI allows marketers to take instant action to target optimized messages for individual clients. To date, Dynamic Yield has raised over $83.3 million in NYC startup funding.

 

Dia&Co - $40M
Date: 11/15/18
Round: Series C
Industry: Fashion, Retail, E-commerce
Investors: 2 - Union Square Ventures, Sequoia Capital
Company: Founded in 2014, Dia&Co allows plus sized customers the ability to try on clothes in the comfort of their own home. Customers take a survey of their tastes and are then sent five-item boxes of clothing and accessories. They buy the pieces they like and send the rest back. To date, Dia&Co has raised over $90 million in NYC startup funding.

 

UiPath - $265M
Date: 11/15/18
Round: Series C
Industry: Automation, Enterprise Software, Information Technology, Robotics
Investors: 6 - Sequoia Capital, Meritech Capital Partners, Madrona Venture Group, IVP (Institutional Venture Partners), CapitalG, Accel
Company: Founded in 2005, UiPath is a software and automation robotics company. UiPath aims to streamline tedious tasks such as document management and data extraction and is currently used by thousands of companies. To date, UiPath has raised more than $448 million after four rounds of funding. This round was an additional $40 million to a Series C previously announced.

We look forward to reporting on the 2018 year-end next month!