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If you've been keeping up with venture capital news, you've likely heard the buzz about the “Series A Crunch.” It's all over the news that the competition is fierce for Series A funding. And while it's true there is a large demand in the marketplace, there is some good news. Quite a few companies have recently secured funding. Let's explore what they're up to, and what it might mean for future funding trends for startups.
Who is Securing Venture Capital Funding?
Coravin recently received $11.5 million in venture capital funding from a group of 106 different investors! The company has developed a new technology for tapping bottles of wine without removing the cork. Cheers to that…but will they pop a cork to celebrate?
On March 12, New York-based Catchpoint Systems received $3.2 million in Series A financing, led by the investment firm Battery Ventures. Catchpoint has developed a technology which assists companies in monitoring Web use and securing online infrastructure. With the growing threat of cyber terrorism, it's not surprising this industry is growing and this company had no problem obtaining funding.
Draper Fisher Jurveston led the investment for $3 million in Series A financing for Spiral Genetics. The company is slated to continue the development of a rapid bioinformatics analysis tool, which will help scientists process genetic data and discover gene sequences which lead to advances in drug development and biofuel development.
Massachusetts-based Altiostar just secured $10.5 million in 2nd round venture capital funding. Their company is building an innovative suite of solutions for the growing mobile broadband industry.
Boston-based CloudHealth Technologies recently received $4.5 million in Series A funding from investors .406 Ventures and Sigma Prime Ventures. CloudHealth has developed a SaaS software product for the cloud that allows companies to manage their performance using analytics, modeling and predictive planning tools.
Shoe and online fashion company Zalora received $26 million in funding for their eCommerce website. While it may not be as attractive to some investors as a high-tech company that's finding a cure for cancer, the online fashion industry is growing. Unlike some other sectors, it's not as saturated yet, so a fashion startup like Modera definitely has a place in line for Series A funding.
Startups who've received Series A funding recently have been in high tech, healthcare, and companies that engage customers online. These industries are doing well, even in the sluggishly recovering economy. One or two investors might partner on a larger, more focused venture, while many funding partners appear to be the case for supporting smaller, more distributed ventures. Regardless of the number of partners, it is all about getting funded in the end.