| Here’s a look at today’s Startups briefing. - 💸 Dayton startups turn to non-dilutive funding in the absence of venture capital.
- 💰 NanoGraf receives a $10M grant to open a plant in Chicago.
- 🤝 NomuPay acquires Total Processing to accelerate growth.
We have also rounded up the top early-stage funding rounds from this week. Thank you. Karan
p/karan-chafekar | |
| 1 | | The main source of capital for Dayton, Ohio-based startups remains non-dilutive funding, such as grants, as VC funding is scarce in the region. While the region's startups have raised only $90M in total VC funding so far this year, they have bagged nearly 2% of all Federal Small Business Innovation Research (SBIR) grants. More: - Between 2012 and 2022, Ohio-based companies were awarded 2,678 grants, 1,252 of which were raked in by Dayton-based startups alone.
- Dayton leads all other regions on grants received other than from the Department of Defense and SBIR.
- On average, Dayton-based startups received $190,000 in grants in 2022 from entities other than DoD and SBIR, significantly higher compared to $138,000 from 2013.
- This October, Ohio Third Frontier's Technology Validation Startup Fund (TVSF) doubled the grant amount from $100,000 to $200,000 to make it more aligned with SBIR.
- Of the 59 proposals sent from Dayton-based companies, 24 received grants in the last six years.
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| 2 | | VCs deployed $703M in early-stage North American startups this week between Nov. 25 and Dec. 1, per Crunchbase data. AI startups raked in 34% of the funding this week. Biotech, fintech, and healthcare startups nabbed 14%, 13%, and 13% of the financing, respectively. 
Here are the top five largest rounds announced this week: - Generative AI startup Together AI closed its Series A funding round at $102.5M. Kleiner Perkins led the round with additional support from Nvidia, Emergence Capital, NEA, Prosperity 7, Greycroft, and 137 Ventures.
- Arrivo BioVentures, a biotech startup developing treatments for major depressive disorders, closed its Series B round at $45.25M. The round was led by Orlando Health Ventures, with additional support from Solas BioVentures Emerging Healthcare Fund, Rex Health Ventures, and others.
- Procurement management and payment processing solutions provider Candex secured $45M in Series B funding. Goldman Sachs led the round with additional participation from World Innovation Lab, Altos, NFX, Craft, JP Morgan, American Express, and Edenred.
- Aro Biotherapeutics, a startup developing tissue-targeted genetic medicines, secured $41.5M in Series B funding led by Cowen Healthcare Investments. Johnson & Johnson Innovation, Northpond Ventures, and BVF Partners participated in the round.
- RepeatMD, a healthcare startup that automates revenue generation for aesthetic and wellness practices, raised a $50M Series A funding round co-led by Centana Growth Partners and Full In Partners. The round also includes a $10M debt facility provided by Silicon Valley Bank.
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| 3 | | Dutch end-to-end payments platform NomuPay acquired British payment processing and gateway solutions firm Total Processing. NomuPay reportedly paid around $35M for the Total Processing. The acquisition will help NomuPay accelerate its growth and expand across Southeast Asia, Europe, Turkey, and the Middle East. More: - The acquisition comes after NomuPay raised $53.6M in Series A funding earlier this year.
- With the acquisition, NomuPay is now valued at $135M, per TechCrunch.
- CEO Peter Burridge called Pitchbook's estimate of NomuPay's valuation of $172M in Sep. 2022 as inaccurate, adding that "valuation has consistently been on the up."
- NomuPay will use the acquisition to add more features for the basic payments feature, further develop merchant-centric services and customer services for business users.
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| 4 | | High-performance battery materials startup NanoGraf has received a $10M grant from the U.S. government through the Inflation Reduction Act initiative. The company will use the proceeds to build a silicon oxide production plant in Chicago, scheduled to open in 2024. The production facility should reach peak production capacity in Q3 2024 and will be capable of producing 24M battery cells annually. More: - 75% of the initial production has been reserved for military clients, while the remaining is to be given to medical device and premium consumer product customers.
- The firm will create 35 jobs with the new production facility.
- Later, NanoGraf intends to expand elsewhere in the U.S. by setting up additional production facilities.
- NanoGraf uses silicon as a key component of the batteries, which helps them reduce their dependence on graphite.
Zoom out: - News of NanoGraf's new factory comes as China announced export controls on graphite, raising concerns globally over a potential shortage of materials.
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| 5 | | Defense startup Epirus' CEO Ken Bedingfield is reportedly leaving the firm and will join an undisclosed public company. COO Andy Lowery has been promoted to the CEO role effective immediately. More: - Bedingfield ascended to the CEO role less than a year ago, before which he served as the COO and CFO since Jun. 2020.
- Bedingfield joined from Northrop Grumman, where he held the CFO position.
- Earlier this year, Epirus received a $66M contract from the U.S. Army to supply its Leonidas product prototypes, which use high-power microwave technology to neutralize drones and other aerial vehicles.
- Last year, the firm cemented its unicorn status with a $1.35B post-money valuation when it raised a $200M Series C round from T. Rowe Price Associates, 8VC, and Bedrock.
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| 6 | | Cadre, a startup providing real-estate investment platform for accredited investors, was acquired by alternative investment platform Yieldstreet. While exact financial details of the transaction were not disclosed, an earlier report from The Information values Cadre at around $100M. More: - Cadre's estimated valuation is significantly lower than its peak valuation of $800M.
- The valuation is also lower than the $133M debt and equity funding raised by the firm from investors such as Andreessen Horowitz, General Catalyst, Khosla Ventures, Goldman Sachs, and Thrive Capital.
- The merged entity has a collective investment value of more than $9.7B.
- Investors have invested $5.3B collectively on the platforms, which has resulted in $3.1B of returns to date.
- Co-founder Ryan Williams will remain the CEO of Cadre and also take on the added responsibility of Yieldstreet's global head of institutional partnerships and clients.
- Cadre's investor and advisor, Mike Fascitelli, has been hired as the global chairman of real estate and head of Cadre's investment committee.
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| 7 | | Quick Hits: - Competitors are killing your efficiency. Read how Greenhouse gained $85M in revenue from reps who used Klue over non-Klue users.*
- SaaS procurement platform Sastrify acquired Dutch rival Pengu to consolidate its position as a market leader. In addition, the firm extended its Series B round with an additional undisclosed sum from Reimann Investors.
- Generative AI business automation firm Kognitos closed its Series A funding round at $20M. Khosla Ventures led the round, with additional support from existing investors Clear Ventures, Engineering Capital, and Wipro Ventures.
- CoreWeave invested an undisclosed sum in AI platform Chai, valuing the company at $450M.
- Syrup Tech, a startup providing AI-powered inventory management solutions to fashion retailers, raised $17.5M in fresh funding led by Accel at a valuation close to $100M.
*This is sponsored content. | | | |
 | Analyst | | Karan Chafekar is a Management Consultant, Business enthusiast, and Licensed Pilot. | | This newsletter was edited by Vibha Chapparike | |
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