#11: (6/24/24) Early & Growth Stage Tech Startup Funding Recap!
Check Out This Week's Venture Capital Investment Summary Spanning Early & Growth-Stage US Based Environmental Technology & Enterprise Software Startups!
Every Monday, the team here at Bearhug Recruiting aggregates, researches, and publishes a recap of the prior week's fundraising activity within the early and growth-stage Environmental Technology & Enterprise Software startup ecosystem.
This research not only allows us to keep our finger on the pulse of the markets we serve, but also benefits others who, like us, enjoy analyzing the latest trends that signal investor confidence AND startup growth within what we believe are the most exciting and impactful segments!
We also hope the people and companies we feature enjoy both a virtual fist bump from the team at Bearhug, plus benefit from some additional free market exposure to amplify their mission. Make sure you reach out to any that are interesting/relevant that you might be able to help!
Here’s this week’s startup funding recap:
Hona, led by Manny Griffiths, has raised a $9.5 million Series A funding round. The round was led by Costanoa Ventures (Amy Cheetham), with participation from Ludlow Ventures, Soma Capital, and Y Combinator. Hona specializes in client engagement software for law firms, designed to improve client communication by automating updates, data collection, and communication processes. The company, based in Lehi, UT, aims to use the funds to enhance platform capabilities and expand its customer base. Since its launch, Hona has supported over 500 law firms and their 300,000 clients nationwide in tracking their cases. [Link] #LegalTech #Customer Engagement Software #Artificial Intelligence
Hark, led by Fran Brzyski, has raised a $3.5 million seed funding round. The round was led by Oceans Ventures (Steven Rosenblatt), with participation from Converge VC (Nilanjana Bhowmik), Atman Capital, Alumni Ventures (David Beazley), BDMI Fund, Tenzing Capital, and strategic angel investors. Hark, based in NYC, offers a Voice of Customer (VoC) platform that extends beyond traditional customer feedback tools by incorporating video and audio feedback, AI-driven sentiment and data analysis, and streamlined customer support. The platform leverages AI to expedite issue resolution, conduct detailed sentiment analysis across multiple touchpoints, and gather scalable customer insights. Already in use at several companies, Hark plans to use the funds to expand operations and enhance platform features. [Link] #Artificial Intelligence #Generative AI #Customer Engagement Software #Customer Support Software #Customer Experience Software #Conversational AI #CX Tech
GrayMatter Robotics, led by Ariyan Kabir, has raised a $45 million Series B funding round. The round was led by Wellington Management (Sean Petersen), with participation from NGP Capital, Euclidean Capital, Advance Venture Partners, SQN Venture Partners, and returning investors including 3M Ventures, B Capital, Stage Venture Partners (Alex Rubalcava), Bow Capital (Murray Rode), Calibrate Ventures (Kevin Dunlap), OCA Ventures, and Swift Ventures. Based in Los Angeles, CA, GrayMatter Robotics specializes in delivering autonomous robotic solutions for labor-intensive and ergonomically challenging tasks such as sanding, polishing, grinding, coating, and finishing. The company combines proprietary AI technologies with robots, sensors, and tools to provide tailored solutions in a Robot-as-a-Service (RaaS) format. It aims to enhance shop floor workers' quality of life, boost production capacity, and minimize scrap, repair, and rework costs. Its solutions, including Scan&Sand™, Scan&Polish™, Scan&Buff™, and Scan&Grind™, cater to a diverse range of industries like aerospace & defense, specialty vehicles, maritime, metal fabrication, and consumer products including sports equipment. GrayMatter plans to use the funding to accelerate the development and deployment of its AI-powered robotic solutions. [Link] #Robotics Engineering #Artificial Intelligence #Industrial Automation #Industrial Manufacturing #Aerospace #Marine Technology #Environmental Technology #Sustainability
Aikido Technologies, led by Sam Kanner, has raised $4 million in seed financing. The round was led by Azolla Ventures (Matthew Nordan), with additional participation from Propeller Ventures (Reece Pacheco), Sabanci Climate Ventures, Cisco Foundation, Anthropocene Ventures, and others. Based in San Francisco, CA, Aikido Technologies is a floating wind startup that aims to reduce costs and fabrication timelines while enabling serial production in the floating wind sector. The company plans to use this capital to advance its offshore deployment technology, expand its team, and develop a commercial pipeline. Aikido's technology features a platform for floating offshore wind turbines designed to cut project costs and enable economic viability. Its notable innovations include pin joints for serialized production, a compact design for efficient assembly space usage, a fit-for-purpose reusable assembly structure for quick setup and transport, and a simple upending procedure requiring only water ballast. Supported by Breakthrough Energy Fellows, Aikido is currently working with Morrison Energy in Harvey, Louisiana, to construct its first Aikido One platform, set for demonstration in the Gulf Coast in Fall 2024. [Link] #Hard Tech #ClimateTech #Wind Tech #Environmental Technology #Sustainability #Renewable Energy
Substrate, led by Rob Cheung, has raised an $8 million seed funding round. The round was led by Lightspeed Venture Partners (Nnamdi Iregbulem), with participation from South Park Commons, Craft Ventures, Guillermo Rauch (Vercel), Immad Akhund (Mercury), Will Gaybrick (Stripe), and others. Based in NYC, Substrate is advancing AI infrastructure with an API for modular AI that enables software engineers to build fast, multi-step AI programs. These programs utilize optimized models along with colocated file and vector storage, a code interpreter, and logical control flow. Substrate's API leverages curated open-source AI models across various modalities such as text, images, audio, and semantic vectors, optimizing them for scalable performance. The system is designed for maximum efficiency, analyzing programs as a graph to enhance parallelism and throughput, ensuring all nodes execute within the same cluster. Early adopters of Substrate's technology include Substack and Maven. [Link] #Artificial Intelligence #Open Source Software #AI Infrastructure #Developer APIs #Optimized AI Models
Maxterial, led by Mehdi Kargar, has raised nearly $8 million in Series A funding. The round was led by Helios Climate Ventures (Jesse Johnson), with participation from QEMETICA (formerly Ciech) and the Mott Corporation. Based in Pleasanton, CA, Maxterial is innovating in the material science field, focusing on the commercialization of advanced coatings. The company employs an eco-systemic lean tech approach to develop solutions that protect against wear, heat, and corrosion, significantly reducing carbon footprint and eliminating the use of toxic materials like hexavalent chromium in industrial processes. The funding will support accelerated R&D, large-scale trials, product expansion, and operational scaling in North America and Europe. Maxterial has already seen significant initial traction, with ongoing trials and early adopters in both continents. [Link] #Advanced Materials #Environmental Technology #Sustainability #GreenTech #Material Science Tech
Pomerium, led by Bobby DeSimone, has raised $13.75 million in Series A funding. The round was led by Benchmark (Eric Vishria), with participation from return investors Bain Capital, Haystack, SNR, and Oleg Rogynskyy, founder of People.AI. Based in Los Angeles, CA, Pomerium provides an access control platform that serves as a gateway between users and resources, enhancing security by continuously verifying identity, access permissions, and context. This system ensures that only authorized individuals access protected assets, acting as a secure intermediary without exposing resources directly to users. The company's infrastructure handles all data decryption and inspection, safeguarding against data breaches from third-party providers. Pomerium is also introducing Pomerium Zero, a new security platform offering both on-premise and hosted solutions for securing web applications and services without a corporate VPN. [Link] #Access Control Platform #Computer and Network Security #Data Security Platform #Secure Remote Access Platform #VPN Replacement #Cyber Security
Molten Industries, led by Kevin Bush, has raised $25 million in Series A funding. The round was led by Breakthrough Energy Ventures (Carmichael Roberts), with new investors including Sozo Ventures, Mark Heising, and Steelhead Capital, as well as support from existing investors such as Union Square Ventures, 50 Years (Alex Teng), J4 Ventures, Moai Capital, UVC Partners, Jane Woodward, and Peter Attia. Based in Oakland, CA, Molten Industries aims to utilize the funding to construct its first modular commercial reactor in Oakland to produce graphite for lithium-ion batteries and clean hydrogen, targeting decarbonization in the chemical and steel industries. Leveraging methane pyrolysis technology developed by company founders, Molten Industries' process creates no carbon dioxide, producing hydrogen gas and graphite using renewable electricity from low-emission methane sources, making it a pivotal player in achieving carbon neutrality. [Link] #Battery Tech #Advanced Materials #GreenTech #CleanTech #Renewable Energy #Environmental Technology #Sustainability
SewerAI, led by Matthew Rosenthal, has raised $15 million in Series B funding. The round was led by Innovius Capital (Justin Moore), with participation from Emerald VC, Epic Ventures, Suffolk Ventures, Bentley iTwin Ventures (Tom Kurke), Burnt Island Ventures, and individual investors including Zachary Bookman, founder and CEO of OpenGov, and CEOs of several elite AI and computer vision companies. Based in Walnut Creek, CA, SewerAI utilizes its cloud inspection management platform (Pioneer™) and AI Computer Vision tools (AutoCode™) to enhance sewer condition assessment and inspection data management. The funding will support expansion of its engineering and go-to-market teams, enhancement of AI training, product offering expansion, and operational scaling. This investment will further enable productivity increases, accuracy improvements, and expanded integrations with other solutions. [Link] #Waste Management Tech #Environmental Technology #Sustainability #Machine Learning #Artificial Intelligence #Infrastructure Inspection
Finaloop, led by Lioran Pinchevski, has raised $35 million in Series A funding. The round was led by Lightspeed Venture Partners (Tal Morgenstern), with participation from Vesey Ventures, Commerce Ventures, and existing investors Accel (Martin Gibson) and Aleph. Based in Brooklyn, NY, and Tel Aviv, Israel, Finaloop is an AI-driven e-commerce accounting platform that automates bookkeeping and financial data reconciliation in real-time. This platform provides consumer brands with tax-ready financials, inventory cost management, and actionable insights 24/7. The funding will be used to enhance its software automation, expand its inventory management capabilities, and bolster go-to-market and partnership efforts with accounting firms and data-driven marketing agencies. Tailored for direct-to-consumer brands on platforms like Shopify, Amazon, and Walmart, Finaloop serves clients such as Heart & Soil, Duradry, Crossnet, Netrition, and Marcella NYC. [Link] #E-Commerce Software #FinTech #Artificial Intelligence #Inventory & Price Optimization Software #Data Analytics Platform
Valuebase, led by Will Jarvis, has raised $6.3 million in Seed funding. The round was led by Narya Capital (Colin Greenspon, Falon Donohue), with additional investors including Sam Altman, Nat Friedman, Mythos Ventures, and Julian Weisser. Colin Greenspon of Narya has joined Valuebase's board as part of the financing. Based in Austin, TX, Valuebase provides data-driven property valuations using a proprietary technology platform that employs machine learning and artificial intelligence. The platform is designed to help government assessment and revenue agencies optimize revenue collection while ensuring equity and fairness. Valuebase's solutions are already in use by local governments in states such as Texas, Florida, and Virginia. The funding will be used to expand product offerings, enhance technology infrastructure, and accelerate expansion efforts. [Link] #Real Estate Tech #PropTech #Machine Learning #Artificial Intelligence #Automated Valuation Model
Scoop Analytics, led by Brad Peters, has raised $3.5 million in Seed funding. The round was led by Ridge Ventures, with participation from returning investors Engineering Capital and Industry Ventures. Yousuf Khan of Ridge Ventures, a former CIO with advisory experience at companies like Material Security and Zoom, is joining Scoop’s board. Based in San Francisco, CA, Scoop Analytics offers a business analytics tool that empowers revenue, marketing, and finance operations teams to manage the data lifecycle fully. Its automated platform allows users with spreadsheet proficiency to extract data from any application, merge data from diverse sources, and create visual data stories through slide presentations based on live data, enhancing business operations. The funding will be used to expand the features of its solution. [Link] #DataOps Software #FinTech #MarTech #Business Intelligence Tools #Data Visualization
Decagon, led by Jesse Zhang, has raised $35 million through Seed and Series A funding rounds. The Seed funding was led by a16z (Kimberly Tan, Jeff Silverstein), while the Series A round was spearheaded by Accel (Ivan Zhou) with contributions from A*, Elad Gil, and angels including Aaron Levie (CEO, Box), Howie Liu (CEO, Airtable), Matt MacInnis (COO, Rippling), Aaref Hilaly (Partner, BCV), Mike Vernal (Ex-Sequoia), Frederic Kerrest (Cofounder, Okta), Jack Altman (CEO, Lattice), and Ed Hallen (Cofounder, Klaviyo). Based in San Francisco, CA, Decagon is a generative AI company that enhances enterprise customer support. The platform offers human-like interactions for customers and provides customer experience leaders with crucial control and visibility. Its AI-powered analytics dashboard reviews and categorizes customer conversations, identifying themes and suggesting knowledge base additions to improve customer inquiry responses. Decagon supports notable businesses including Eventbrite, Bilt, Webflow, Substack, and Rippling. The company plans to use the funding to further advance its product and expand its team. [Link] #Artificial Intelligence #Generative AI #Customer Engagement Software #Customer Support Software #Customer Experience Software #Conversational AI #CX Tech
Factory, led by Matan Grinberg, has raised $15 million in Series A funding. This round was led by Sequoia Capital (Shaun Maguire), with participation from Lux Capital and Mantis VC. Factory's total funding now exceeds $20 million, valuing the company at $120 million. Based in San Francisco, CA, Factory is dedicated to automating software engineering through its suite of AI-powered Droids {Review, Test, Code, Knowledge, Project, Document}, which significantly enhance the software development lifecycle. Over the past year, Factory has doubled its customer base monthly, adding leading engineering organizations like Bubble, Nav, Printify, Podium, Stord, and more. Recent breakthroughs in orchestration, retrieval, and planning have positioned its Code Droid at the forefront of AI coding benchmarks, demonstrating state-of-the-art performance. Factory's continued mission is to automate the tedious aspects of software development, allowing for more efficient coding processes and faster development cycles. [Link] #Artificial Intelligence #DevTools #Software Engineering Automation #AI Model Training #AI Model Inference
Trustwise, led by Manoj Saxena, raised $4 million in seed financing. The round was led by Hitachi Ventures (Gayathri Radhakrishnan), with participation from Firestreak Ventures and Grit Ventures. Based in Austin, TX, with research labs in Cambridge, UK, and New York, Trustwise specializes in generative AI application performance and risk management. The funds will be used to speed up the development of cost and risk-optimized generative AI prototypes for various industries, accelerate its go-to-market and partnership strategy, and advance its research initiatives. Trustwise’s flagship product, Trustwise Optimize, is an API that enhances AI application performance and risk management by performing red teaming and providing a safety, cost, and risk optimization layer for enterprise environments. It is used by enterprises across multiple regulated industries, compatible with any AI model, and supports diverse architectures including cloud, on-premises, and edge, capable of managing large-scale generative AI operations. [Link] #Artificial Intelligence #Generative AI #AI Safety #AI Risk Optimization #Cybersecurity Software #DevTools
Humata Health, led by Jeremy Friese, raised $25 million in funding. The round was led by Blue Venture Fund (Richard Antwi-Boasiako) and LRVHealth (Keith J. Figlioli), with participation from Optum Ventures, .406 Ventures, Highmark Ventures, and VentureforGood. Based in Winter Park, FL, Humata Health specializes in transforming the prior authorization process for payers and providers through AI and automation. The company plans to use the funds to enhance its proprietary generative AI technologies, expand its customer base among leading healthcare providers, and initiate partnerships with payers and delegated entities to streamline prior authorizations. Humata Health's platform uses a proprietary database and AI engine to automate the manual and complex process of prior authorizations, improving submission quality with informed recommendations for clinical documents. More than 42,000 physicians at 225 hospitals nationwide currently benefit from its technology, which ensures that prescribed care is clinically appropriate. [Link] #Healthcare #Artificial Intelligence #Generative AI #Healthcare Prior Authorizations Software
*Note: The companies we feature in our weekly recap are a very small subset of a much larger batch, carefully chosen based on our team's assessment of how each company aligns with our GTM search practice. It’s worth noting that most startups raise funding rounds privately, often long before the news is announced publicly!