Xpansiv Seeks to Expand with $400M, Cyber Insurer Coalition Gets $250M
This is a weekly feature that features the top 10 funding rounds of the week in the United States. Check out the biggest funding rounds from the past week here.
Maybe companies were reluctant to announce new funding after the July 4 holiday, or maybe this was another indication of a downturn in the venture capital market, but July started slowly, very slowly. Only three rounds raised by US-based startups reached nine figures. In fact, you could be in the top 10 this week by raising $20 million. This is something that would never have happened last year.
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1. Xpansiv, $400 million, financial services: Carbon offsets and renewable energy credits have become big business, and companies need a place to buy and sell. Blackstone sees this clearly. Funds managed by the private equity giant’s energy-focused investment firm, Blackstone Energy Partners, have committed $400 million to lead a strategic investment in Xpansiv. The New York-based company has developed a market infrastructure platform for global carbon and environmental products, such as voluntary carbon offsets or energy credits. This has become important as companies attempt to meet their ESG objectives. Founded in 2018, Xpansiv has raised nearly $580 million, according to data from Crunchbase.
2. Coalition, $250M, cyber insurance: While there may be a slowdown in funding for cybersecurity startups, this week wasn’t a perfect illustration of that, as two such companies made it into the top five. San Francisco-based Coalition closed a $250 million round at a $5 billion valuation, less than a year after raising a $205 million Series E round at a valuation of over 3.5 billions of dollars. In fact, in about 15 months, Coalition’s valuation nearly tripled. The new round comes as the insurer has experienced significant growth, increasing its revenue by almost 200% over the previous year. This growth also shows the growing importance of cyber insurance, as the increase in cyber attacks in recent years has increased the need for businesses to seek protection. The new round included participation from Allianz X, Valor Equity Partners, Kinetic Partners and other existing investors, the company said in a statement. Founded in 2017, Coalition claims to have raised $755 million.
3. Flexe, $119M, logistics: Investor interest in supply chain logistics and technology remains high as the world continues to try to overcome pandemic-born distribution challenges. Seattle-based startup Flexe is the latest to turn that interest into a big ride. The company raised a Series D of $119 million at a post-money valuation of over $1 billion. The round included new investments from funds and accounts managed by BlackRock, as well as funds and accounts advised by T. Rowe Price Associates and T. Rowe Price Investment Management, and Tiger Global, among others. Flexe’s programmatic logistics technology platform helps large retailers and other brands. It provides things like scalable warehousing solutions and retail distribution. It has become big business due to the supply chain deadlock. VC-backed logistics startups have raised nearly $11.5 billion this year, according to data from Crunchbase. While it may not be able to reach the nearly $24.5 billion it raised last year, it still represents significant dollars. Founded in 2013, Flexe has raised more than $260 million, according to data from Crunchbase.
4. Tebra, $72 million, health care: Digital healthcare was growing steadily before the pandemic, but has certainly taken off since COVID made many people reluctant to go out and see a doctor. Tebra is the latest to take advantage of this expanding market and growing investor interest, as the Newport Beach, Calif.-based startup closed a funding round worth more than $72 million led by Golub Capital at a valuation of over $1 billion. The round is a mix of growth capital and debt financing. The company offers a digital platform for independent practices to help them with everything from planning to payments to telehealth. Tebra was formed late last year after Kareo and PatientPop merged.
5. Swimlane, $70 million, cybersecurity: As we said earlier, it’s been a good week for a few e-businesses when it comes to fundraising. Boulder, Colorado-based Swimlane has completed a $70 million growth funding round to help companies automate some of their cybersecurity needs. This has become necessary due to both a shortage of cyber talent and shrinking IT budgets to compensate available talent. The round was led by Activate Capital. Founded in 2014, the company has raised nearly $155 million, according to data from Crunchbase.
6. Zeem Solutions, $50 million, electric vehicles: Zeem Solutions, based in Inglewood, Calif., has closed a $50 million capital commitment with a fund managed by ArcLight Capital Partners. Zeem enables companies to operate fleets of commercial electric vehicles for a flat monthly fee, which includes vehicle rental, charging, maintenance and insurance.
7. Calyxo, $32.7 million, medical devices: Calyxo, a Pleasanton, Calif.-based medical device company specializing in kidney stone treatments, closed a $32.7 million Series C led by Questa Capital and CRG. Founded in 2016, the company has raised more than $47 million, according to Crunchbase.
8. Deuna, $30 million, e-commerce: Deuna, the Palo Alto, Calif.-based crate trading startup, raised a $30m Series A round led by Activant Capital. Founded in 2020, the company has raised $37 million to date, according to Crunchbase.
9. Kernal Biologics, $25 million, biotechnology: Cambridge, Massachusetts-based mRNA technology company Kernal Biologics has closed a $25 million Series A led by Hummingbird Ventures. Founded in 2016, the company has raised $25 million, according to data from Crunchbase.
10. Traba, $20 million, staff: Miami-based Traba, a marketplace for jobs in fulfillment centers and event venues, raised a $20 million Series A round led by Khosla. Founded last year, the company has raised nearly $24 million, according to Crunchbase.
big world business
Although US startups had a slow week raising funds, there were several big fundraisers around the world.
- Swedish electric vehicle battery maker Northvolt has raised $2.75 billion in a new funding round.
- China-based drug research platform ClinChoice has raised $150 million in Series E.
- Brazilian consumer lending startup Creditas has raised $150 million in new funding.
We’ve been tracking the biggest rounds in the Crunchbase database that were raised by US-based companies during the seven-day period July 2-8. Although most announced rounds are represented in the database, there might be a slight lag as some rounds are posted on weekends.
Illustration: Dom Guzman
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