Category: Austin (Page 1 of 315)

Austin startups raised $804.5 million in venture capital in the fourth quarter of 2024,  an almost 29 percent decrease from the same quarter a year ago, according to the latest Pitchbook-National Venture Capital Association Venture Monitor Report.

The fourth quarter VC funding is also down almost 25 percent from the $1.1 billion Austin startups raised in the third quarter of 2024.Austin Startups Secure $804.5 Million in Q4 2024 VC Funding, Marking 29% Year-Over-Year Decline

The number of deals funded in the Austin Round Rock metropolitan area also dropped to 71 deals in the fourth quarter, an almost 47 percent decrease from 133 in the fourth quarter of 2023.

For all of 2024, Austin startups raised $4.5 billion, about the same amount as 2023. The number of deals funded in the Austin Round Rock metropolitan area rose to 487 in 2024, up 7 percent from 455 deals in 2023.

The top deal financed in the fourth quarter of 2024 was $175.5 million to Firefly Aerospace, based in Cedar Park, which is creating rockets for commercial launches to orbit. It was also the top deal for the fourth quarter of 2023 when it raised $300 million.

The second largest deal was Halcyon Network Management Software, which raised $115 million. The company makes software that defeats ransomware.

The third largest funding went to Ladder, the leading strength training app, which raised $105 million in Series B funding and secured an additional $90 million in growth investment from General Catalyst.

Overall, startups nationwide attracted $209 billion in venture capital across 15,260 deals. “Both figures surpass pre-pandemic and 2023 totals but are still far from zero-interest-rate policy ear highs,” according to the Pitchbook-NVCA report. “Deal activity increased at nearly all stages, with pre-seed/seed and early stage deals notching 2024 highs and late-stage deals seeing a slight bounce back after two consecutive quarters of declines.”

“After a strong quarter with the highest investment levels since mid-2022, there’s a sense of cautious optimism for VCs and entrepreneurs heading into 2025,” Bobby Franklin, President and CEO at NVCA said in a news release.

“Changes in leadership at the FTC and DOJ could ease some liquidity challenges for portfolio companies, and changes at the SEC could right-size the regulatory burdens at firms,” Franklin said. “With more VCs stepping into government roles and engaging actively on Capitol Hill, the venture industry has a unique opportunity to highlight the critical role of venture-backed companies in driving economic growth and maintaining American competitiveness. The tax bill currently making its way through Congress is especially significant, with potential to incentivize innovation, reinstate the R&D tax credit, and support the broader ecosystem.”

Top Austin VC Deals in the Fourth Quarter of 2024

Firefly Aerospace.   $175.0 million

Halcyon                  $115.0 million

Ladder                     $105 million

Parachute                 $93.8 million

Diligent Robotics      $44.3 million

Source: Pitchbook

Firefly Aerospace’s Blue Ghost lunar lander successfully launched early Monday on a SpaceX Falcon 9 rocket, marking the start of a 60-day mission that aims to land on the Moon’s surface in March.

The spacecraft, part of NASA’s Commercial Lunar Payload Services initiative, lifted off from Kennedy Space Center’s Launch Complex 39A at 1:11 a.m. EST. After separating from the rocket at 2:17 a.m., Blue Ghost established contact with mission control in Cedar Park, Texas, and completed initial commissioning by 5:30 a.m.

“The mission is now in the hands of the unstoppable Firefly team,” said Firefly Aerospace CEO Jason Kim. “We’re now fully focused on execution as we look to complete our on-orbit operations, softly touch down on the lunar surface, and pave the way for humanity’s return to the Moon.”

The mission, dubbed “Ghost Riders in the Sky,” will spend approximately 25 days in Earth orbit, followed by a four-day lunar transit and 16 days in lunar orbit before attempting to land in Mare Crisium. During its journey, the spacecraft will test GPS capabilities and demonstrate radiation-resistant computing systems.

Once on the lunar surface, Blue Ghost will operate 10 NASA payloads during a 14-Earth-day mission, conducting experiments including subsurface drilling and dust mitigation studies. The mission will conclude with high-definition photography of a total solar eclipse as viewed from the Moon and observations of the lunar sunset.

The mission represents one of four NASA task orders awarded to Firefly as part of the broader Artemis campaign, which aims to establish a sustained human presence on the Moon. The landing is targeted for March 2.

Firefly Aerospace, based in central Texas, is a portfolio company of AE Industrial Partners providing launch and lunar services for government and commercial customers.

The Better Business Bureau of Austin will establish a new Women’s Business Center following a federal grant announced Thursday as part of a $26.25 million nationwide investment by the U.S. Small Business Administration.

The Austin center is one of 13 new locations being established across the country to support women entrepreneurs. It will provide core business development services to women-owned businesses in the greater Austin area, adding to the city’s growing resources for women entrepreneurs.

The expansion comes at a time when women are starting businesses at historically high rates, according to SBA Administrator Isabel Casillas Guzman, who noted that women have been filing new business applications at double the rate over the past four years.

“When we invest in women, our economy wins,” Guzman said at the announcement of the nationwide initiative.

The establishment of a SBA Women’s Business Center was one of the 12 key initiatives recommended in Mayor Kirk Watson’s Austin Women Entrepreneurs Task Force. Mayor Watson commissioned the task force to create a report with recommendations to support female founders in Austin.

Carla McDonald, an entrepreneur, led the 21-person task force, which met for nine months and conducted interviews and surveys with a variety of female founders to learn about their challenges and find solutions. McDonald recently discussed the task force’s report, which they gave to the Mayor last year.

The new center will offer one-on-one counseling, training, networking opportunities, workshops, and technical assistance to women looking to start or expand their businesses. It joins other local efforts to support women entrepreneurs in the Austin area.

McDonald and other members of the Austin Mayor’s Task Force will be participating in a panel discussion at Silicon Hills News’ Second Annual Female Founders Outlook on Jan. 28th at Zilker Lodge.

The Austin location is part of a broader initiative that expands the SBA’s network of Women’s Business Centers to 168 nationwide. The program includes specialized support for childcare enterprises and government contracting, though the Austin center will focus on core services for the local business community.

Women entrepreneurs in Austin will have access to business startup guidance, financial management consulting, marketing expertise, and procurement training through the new center. The BBB’s existing presence in Austin is expected to strengthen the center’s ability to serve the local business community.

Opening dates and specific location details for the Austin center will be announced in the coming months.

Colossal Biosciences, a company working to bring extinct species back to life, has secured $200 million in Series C funding, bringing its total valuation to $10.2 billion, the company announced Wednesday.

The latest funding round was led by TWG Global, a diversified holding company run by Mark Walter and Thomas Tull. Since its founding in September 2021, Colossal has raised $435 million in total funding.

“Our recent successes in creating the technologies necessary for our end-to-end de-extinction toolkit have been met with enthusiasm by the investor community,” said Ben Lamm, CEO and co-founder of Colossal.

The funding and support reflect how much progress the teams have made, Lamm said. People are excited about the innovations and technologies and progress on Colossal’s efforts to revive three extinct species: woolly mammoth, Tasmanian tiger (thylacine), and dodo.

The Dallas-based company employs more than 170 scientists across facilities in Boston, Dallas, and Melbourne, and Australia. And even as Colossal seeks to expand the species it works on, Lamm doesn’t foresee a huge need for more employees.

“As we get more efficient with the AI models and the genome we don’t need to hire so many more,” Lamm said. “We believe with this capital that we’ll be able to add several new species teams without doubling the size of the company just because of the core infrastructure and technologies that we’ve made.”

Some of the funding raised will be earmarked for additional species work, Lamm said. But those aren’t ready to be announced yet, he said.

“I think we would probably add one or two mammals and then at least one bird species because I I think we want to find efficiencies across these different groups,” Lamm said.

To date, the company’s scientific achievements include generating the first de novo assembled mammoth genome, creating pluripotent stem cells for Asian elephants, and producing the most complete ancient genome to date for the thylacine. The company has also successfully hatched its first chimeric chicks as part of its dodo revival program.

“The woolly mammoth is not going to be a clone of the woolly mammoth. It’s going to be a even better woolly mammoth,” Lamm said. “We’re trying to create mammoth 2.0. We’re making supercharged ones.”

Everything is on track so the mammoth project is on track for late 2028, Lamm said. This year, Lamm expects all three projects to be in the editing phase.

In addition to its three flagship projects of bringing back extinct species, Colossal is biobanking tissue samples and wants to take it to the next level of bio vaulting.

 “It can’t just be us,” Lamm said. “We need academic partners and government partners so we’ve been we’ve been lobbying that pretty hard at the hill.”

With the new funding, Colossal is expanding its work in artificial wombs which could be one of the biggest game changes for conservation of all time, Lamm said.

“Imagine a world where you grow 200 northern white rhinos at the exact same time  without touching an existing animal,” Lamm said. “So it’s great from an animal welfare perspective.”

With the new funds, Colossal is also expanding its AI and algorithm work, Lamm said.

George Church, Colossal co-founder and professor of genetics at Harvard Medical School, called the company “revolutionary,” saying it is “making science fiction into science fact.”

The funding announcement comes as scientists warn of an accelerating extinction crisis. Current estimates suggest that by 2050, over 50% of the world’s animal species may become extinct, with approximately 27,000 species currently disappearing each year.

In October 2024, Colossal launched a nonprofit foundation to oversee the deployment of its technologies. The foundation currently supports 48 conservation partners globally, including Re:wild, Save The Elephants, and the International Elephant Foundation.

The company’s additional strategic investors include USIT, Animal Capital, Breyer Capital, and notable individuals such as filmmaker Peter Jackson and hedge fund manager Paul Tudor Jones.

“Countries have been very supportive, and people are very excited about what we’re doing,” Lamm said. “Governments are now reaching out to us around bio vaults. Governments are now reaching out to us saying hey can you help back up our species or can you bring back this national icon to us.”

Colossal’s research can also help humans, Lamm said. It can help with gene editing to deal with genetic mutations to prevent diseases like Sickle Cell Anemia, Lamm said.

“We’re building an incredible company that I would argue is the most advanced genetic engineering and synthetic biology company,” Lamm said. “We’re doing it in Texas.”

“We’re told we are the first Texas Decacorn that was built in Texas,” Lamm said. “ I think that’s incredible, and it shows Texas is such a friendly place to work and such a great community of humans and that we’ll see many more Decacorns and then whatever the next corn is after that.”

Austin has fallen from its top spot in a prestigious national economic ranking, highlighting growing challenges despite continued strength in its technology sector, according to a new report released Tuesday by the Milken Institute.

The Texas capital dropped five positions in the annual Best-Performing Cities index but maintained its decade-long presence among the top 10 large metropolitan areas, driven by robust wage growth and a thriving high-tech industry.

Austin led all major U.S. metropolitan areas in five-year job growth and ranked fourth in one-year job growth. The city posted a remarkable 68.2% increase in wages over five years, surpassing the next-highest large city by more than 10 percentage points.

The technology sector has been particularly strong, with Austin ranking sixth nationally in high-tech concentration, the highest among Tier 1 large cities. The information sector grew by 52.8% from 2018 to 2023, dramatically outpacing the national growth rate of 6.7%.

However, the report identified significant challenges that could threaten Austin’s economic momentum. Short-term job growth has plummeted, with the city falling from 22nd to 104th position — last among Tier 1 large cities in this metric.

Housing affordability has emerged as a critical concern. Austin now ranks 143rd among large cities in housing affordability, the lowest among top-tier metropolitan areas. While recent construction efforts have helped address housing supply shortages, the report suggests affordable housing remains scarce.

The city’s tech sector continues to show diversity and strength, particularly in computer systems design, corporate management, and data processing. The presence of the University of Texas has helped maintain a skilled workforce pipeline.

Local economists suggest Austin’s future growth may depend on addressing its affordability challenges while maintaining the economic diversity that has fueled its rise as a technology hub.

The Milken Institute’s Best-Performing Cities index evaluates metropolitan areas based on 13 economic metrics, including labor market conditions, high-tech growth, and access to economic opportunities.

Advanced Micro Devices CEO Lisa Su was named Time Magazine’s CEO of the Year for 2024, recognizing her transformative leadership in guiding the semiconductor company through a remarkable decade of growth.

When Su assumed the chief executive role, AMD was struggling, with its stock price hovering around $3 and a minimal presence in the data center chip market. Through a strategic overhaul of product design and customer relationships, Su positioned the company to capitalize on the artificial intelligence boom.

While AMD is based in Santa Clara, California, Su works out AMD’s Austin campus.

Under her leadership, AMD’s market capitalization has surpassed that of rival Intel, reaching a milestone in 2022. The company’s stock price has dramatically increased to approximately $140, reflecting Su’s successful turnaround strategy.

Despite the significant progress, AMD remains the second-largest semiconductor company, trailing behind Nvidia. Nvidia, led by CEO Jensen Huang, has become the world’s largest company by market capitalization and dominates the GPU market for AI data centers.

The Time Magazine recognition highlights Su’s ability to reinvent AMD’s market position and competitive strategy in the rapidly evolving technology landscape.

Su did not immediately comment on the award.

At a fun event that featured taiko drummers, sushi and lots of drinks, AVRO Life Co launched its new GABA-based beverage powder line on Tuesday in Austin.

Several hundred people attended the launch party  to experience the product designed to enhance cognitive wellness.

The event took place at Texas Saké Co and featured food prepared by Michael Carranza, chef of Tare, a recent Michelin Guide-recognized sushi restaurant in Austin.

AVRO, developed under the inspiration of the Japanese concept of Ikigai, aims to provide what the company calls “Intelligent Hydration” with its scientifically formulated beverage powders.  Ikigai is a Japanese concept referring to something that gives a person a sense of purpose, a reason for living. The product utilizes PharmaGABA® and is marketed to boost energy, focus, and calm. PharmaGABA is the brand name of Gamma-aminobutyric acid (GABA) from Pharma Foods International in Kyoto,  Japan. It is produced by natural fermentation.

Guests had the opportunity to sample the six flavors of AVRO mocktails and learn about the product from company CEO Keigo Sugawara.

GABA (gamma-aminobutyric acid) is a naturally occurring neurotransmitter that plays a critical role in regulating brain activity and nervous system function. As the primary inhibitory neurotransmitter in the human brain, GABA helps balance neuronal excitability, which can have significant implications for mental wellness, stress management, and cognitive performance.

In scientific research, GABA has been extensively studied for its potential to reduce anxiety and promote relaxation. Unlike stimulant-based cognitive enhancers, GABA works by creating a calming effect in the central nervous system. It helps decrease neural excitement, which can lead to reduced stress, improved mood, and better emotional regulation. Some studies suggest that GABA supplementation may help individuals manage symptoms of anxiety and potentially improve sleep quality by promoting a more relaxed mental state.

Cognitive benefits associated with GABA include enhanced focus and potential improvements in mental clarity. By helping to modulate brain activity, GABA can potentially support concentration and reduce the mental “noise” that often accompanies high-stress environments. Neurological research indicates that GABA may play a role in protecting against cognitive decline and supporting overall brain health. However, it’s important to note that while promising, research is ongoing, and more comprehensive studies are needed to fully understand the extent of GABA’s cognitive benefits.

The form of GABA used in products like AVRO – PharmaGABA® – is a specific, scientifically developed variant that aims to improve bioavailability and absorption. This means the body may more effectively utilize the GABA compound compared to traditional supplementation methods.

AVRO officials are working to make its powered beverage products available in Austin area stores.

Inspira Financial announced recently that it has acquired First Dollar, a technology company specializing in consumer-directed health benefit solutions, in a strategic move to enhance its health and benefits platform.

Financial terms of the acquisition were not disclosed. The deal brings Austin-based First Dollar’s technology infrastructure and development team into Inspira’s operations, expanding the company’s capabilities in health and financial services.

First Dollar, founded in 2019, had raised $19 million in venture funding, according to Pitchbook.

Matt Marek, president of Inspira Financial, said the acquisition aligns with the company’s mission to improve health outcomes and provide more customizable solutions for insurance providers and distribution channels.

First Dollar’s technology platform includes a Health Wallet for members, a Health Wallet Manager for administrators, and a Health Wallet Platform for partners. The company provides flexible infrastructure for managing health spending benefits, pre-tax accounts, and supplemental benefits.

Inspira Financial, which serves over 8 million clients with more than $62 billion in assets under custody, aims to strengthen its position in health consumerism through this strategic investment.

The acquisition is expected to help Inspira create a more unified platform that connects healthcare and financial services, potentially simplifying how individuals manage their health benefits.

First Dollar’s development team will join Inspira, bringing expertise in consumer-driven technological solutions. The company has 33 employees, primarily at its Austin headquarters, according to Pitchbook.

Austin and Paris-based startup GROWL has officially launched, unveiling an innovative fitness platform that transforms traditional boxing training and announcing a $4.75 million seed funding round.

The startup has secured investment from a diverse group of venture capital firms and notable athletes, including lead investor Skip Capital, Teampact.ventures, and Kima Ventures. The round also features investments from professional athletes such as Ciryl Gane, Gaël Fickou, and Julien Marchand, alongside tech entrepreneurs like Jonathan Cherki and Charles Gorintin.

GROWL aims to democratize boxing training by creating an interactive, AI-powered fitness solution that brings professional-level training into users’ homes.

Innovative Technology Meets Fitness

GROWL’s flagship product combines advanced technologies like high-resolution projection, edge-AI computing, multi-camera 3D motion tracking, and Unreal Engine-powered gaming to create an immersive fitness experience. The wall-mounted device offers a life-sized, interactive coach that provides real-time, personalized feedback for workouts.

“GROWL is something else entirely,” said Ciryl Gane. “Every session feels like a game, drawing you back for more. It makes boxing fun and accessible without sacrificing any of the thrill.”

A Fitness Solution for Everyone

Designed for users aged 10 and up, the platform offers a diverse range of workouts including boxing, strength training, yoga, and flexibility exercises. The system adapts to different fitness levels and goals, making it a comprehensive family fitness solution.

Adam Cook from Skip Capital noted the product’s versatility, highlighting its potential for “a complete, immersive at-home fitness experience, with limitless possibilities for future content and workouts.”

Market Opportunity and Vision

GROWL enters the $322 billion global fitness industry, targeting the $110 billion U.S. market with a unique value proposition. The company aims to democratize boxing training by making it accessible, engaging, and technology-driven.

CEO and Co-founder Léo Desrumaux shared a personal motivation: “I found myself through combat sports and boxing. Suddenly, I realized I wasn’t made out of glass – that I could take a punch but also hit back.”

Pricing and Availability

The product is positioned as a premium connected fitness device, with pricing at approximately $150 per month on a 48-month plan or $190 on a 36-month plan, which includes hardware and subscription for unlimited family access.

Pre-sales are expected to open in April 2025, with interested customers able to learn more at joingrowl.com.

Austin-based startup MakersHub has raised $7 million in additional Seed funding, bringing its total funding to $11.5 million and positioning the company for significant growth in the accounts payable technology space.

The funding round was led by prominent investors QED Investors and TTV Capital, with participation from Dash Fund, TRB Advisors, and four angel investors. As part of the investment, QED Partner Laura Bock and Athletic Brewing Company CEO Bill Shufelt will join MakersHub’s Board of Directors.

Founded in 2021 by Wharton Executive MBA alumni Phong Ngo and Charley Howe, MakersHub has developed a data-driven accounts payable platform designed to streamline financial processes for businesses and accounting professionals. The company’s technology aims to capture comprehensive financial data, reduce processing errors, and generate meaningful business insights.

The startup has demonstrated impressive growth, boasting over 200 paying customers and a network of several thousand payees. MakersHub has reported more than 10x year-to-date growth across nearly all of its commercial metrics.

Company leaders plan to use the new funding to accelerate platform infrastructure investments and expand their sales and marketing teams. This strategic approach reflects the startup’s commitment to supporting its rapid customer acquisition and technological development.

“This funding will enable us to continue our mission of transforming accounts payable processes for data-driven businesses,” said a company spokesperson.

The investment highlights the growing market demand for innovative financial technology solutions that can help businesses optimize their financial operations and generate actionable insights.