It’s been just over three weeks since the World Health Organization characterized the novel coronavirus as a pandemic, and now the slowing of capital has started to appear. Still, there were three significant instances of funding activity, and between March 29 and April 5, it all happened in Atlanta.
As the economic ramifications of COVID-19 continue to affect startups in the South, Hypepotamus will continue monitoring funding rounds and new investor activity across the region. And always feel free to let us know if your company or others you follow have recently received a boost in capital — we’ll be sure to share the good news!
EVO Payments, Inc.
$150 million came to this fintech company, which earns revenue by collecting fees for linking businesses to customers’ personal bank accounts, by way of stock purchase. One of EVO’s shareholders, Madison Dearborn Partners, LLC, was heavily involved in the purchase of perpetual Convertible Preferred Stock.
A statement from the company said the transaction, announced March 29, was mean to help EVO continue with strategic initiatives as the coronavirus impacts economic activity.
“We have taken decisive measures to ensure our business is best positioned to continue to serve our valued customers throughout this global pandemic,” said EVO CEO James G. Kelly.
Demand Driven Technologies
Mosley Ventures, Alerion Ventures, and Shawn Welch of Midtown Capital Advisors led a $3.6M Series Seed 2 for this inventory and supply chain management company based in Atlanta, whose 100+ enterprise clients include Coca-Cola of Africa.
Hype wrote about Demand Driven Technologies in January, and interviewed CEO Erik Bush, who at the time said they were expecting to announce a new funding round in February. Bush said in the announcement that expectations of accelerated growth made the new funds as necessary as they are welcome.
“As the Coronavirus pandemic has shown, supply chains can be vulnerable to global events,” Bush said, “and modern supply chain management tools are needed to handle the uncertainty.”
RoadSync
The last time we checked on this Atlanta-based digital payment processing and revenue collection platform for the transportation industry, CEO Robin Gregg spoke of the company’s rebranding efforts after closing a $2.5M funding round. Two years later, the platform has raised an additional $5.7M in a Series A, according to a March 31 announcement. Base 10, Hyde Park Venture Partners and Companyon Ventures were involved.
“There is an opportunity to have a real impact on the logistics industry that is the backbone of our economy,” CEO Greggs said in the announcement. “The entire $700 billion domestic transportation industry needs and deserves better financial products.”
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