At least five Minnesota startups raised just under $40 million in capital in July. The month's largest deal belongs to Miromatrix, an Eden Prairie-based biotech startup that closed on $15.7 million to support further testing of its organ-growing technology.
The start of July signaled the end of Q2, the half-way mark for 2018. So far this year, more than $245 million has been invested in 56 Minnesota startups, according to Pitchbook. The number of deals is up from both the last six months (37 deals) and the first six months of 2017, though the amount of capital is down slightly.
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FUNDINGS
Praestan
- Praestan Health, a startup that launched just last year as a behavioral-healthcare provider and has since expanded into the software business, closed on a $12 million round of funding. Praestan started out embedding behavioral-health clinics inside primary care clinics. The company’s goal was to work closely with primary care doctors to better identify and treat patients who also need care for conditions such as depression and anxiety.
Miromatrix
- Miromatrix Medical, a biotech startup using research from the University of Minnesota to turn pig organs into transplantable human organs, has closed its Series B round at $15.7 million. Miromatrix surpassed its original goal of $10 million for this round, and welcomed its first large strategic investor – a “multibillion-dollar healthcare company” that Miromatrix did not name in its release.
Inspectorio
- Inspectorio, a startup that makes tech for supply chain inspections, closed on a $10 million Series A round of funding from an investor group that includes Techstars and Ecolab. Minneapolis-based Inspectorio develops tech that walks users through the inspection process and lets factories, vendors and retailers better share information. The company moved to Minneapolis from Hong Kong after participating in the Target + Techstars accelerator program in 2016.
Hitch Health
- Hitch Health, a startup that coordinates Lyft rides for patients headed to medical appointments, closed on $900,000 in equity financing. The company piloted its service in the Twin Cities and rolled out its service nationwide through its partnership with San Francisco-based Lyft. The company did not disclose its investors.
Recovree
- Recovree, a new startup that aims to introduce new resources to those recovering from substance abuse, raised $325,000 in a planned $500,000 round, according to an SEC filing. St. Paul-based Recovree was co-founded by Lunar Startups Managing Director Melissa Kjolsing Lynch and her brother Lucas Kjolsing. Prior to leading Lunar Startups, Lynch was the director of the Minnesota Cup, which Recovree is competing in this year.
OTHER DEALS
Sportradar Valued at $2.4B in Minority-Stake Sale
- Sportradar, a Swiss provider of sports data with substantial operations in Minneapolis, received two new minority owners in a deal that values the company at $2.4 billion. Investment firm EQT sold its minority stake in Sportradar to the Canada Pension Plan Investment Board and Menlo Park, California-based growth equity firm TCV. This transaction comes around two months after the Supreme Court struck down a ban on sports betting, a move that could have a big impact on providers of sports data.
Vixar Sold in Latest Exit for Sofia Fund
- Vixar Inc., a venture capital-backed laser company founded by two former Honeywell engineers, has been sold to German lighting manufacturer Osram for an undisclosed amount. Plymouth-based Vixar makes vertical-cavity surface-emitting lasers (VCSELS). Companies incorporate VCSELs into a range of sensors, and demand for the tech has heated up in recent years. Vixar’s sale is good news for the company’s investors, including Sofia Fund. Vixar was one of two exits for Sofia in the second quarter of 2018 alone.