Facts
- HQ
- Silicon Valley
- Sectors
- Venture capital, Technology, Defense
- Founded
- 2009
- Founders
- Marc Andreessen, Ben Horowitz
Wild times for tech startups
What the heck is going on in the economy, and how will the current market gyrations and geopolitical uncertainty impact startups and venture capital? To help answer these questions we invited Tim Porter to join us this week on the GeekWire Podcast. He's a Madrona Venture Group managing director who has invested in early-stage technology startups at the Seattle-based venture capital firm for the past 15 years, in areas including cloud, AI and enterprise software companies. Follow along with our extended notes from the discussion. With GeekWire co-founder John Cook. Edited by Curt Milton; Theme Music by Daniel L.K. Caldwell…
Andreessen Horowitz, Madrona and other tech VCs ramp up bets on AI-driven biotech startups as founders from software enter life sciences
Tech venture capital firms like Andreessen Horowitz and Seattle’s Madrona Venture Group are increasingly investing in life-science startups that use AI, machine learning and data science to speed drug discovery and development. Investors are following founders who transitioned from software to biotech—such as Sujal Patel of Nautilus and Terry Myerson of Truveta—seeing reduced perceived risk and new opportunity at this intersection.
Irreverent Labs, led by Rahul Sood and backed by Andreessen Horowitz, raises $5M and unveils MechaFightClub — a Solana-based AI + NFT fighting game
Irreverent Labs, a Seattle startup led by Microsoft veteran Rahul Sood that raised a $5 million seed round backed by a16z, unveiled MechaFightClub, a Solana-based, cruelty-free play-to-earn fighting game using AI, NFTs and an in-game currency called nuggets set to release this spring. The game features unique tradable ‘mechabots,’ genetics/breeding systems, and aims to attract traditional gamers by offering character ownership and monetization.
BrainSpace wins $200,000 from Seattle Angel Conference to advance automated external ventricular drain
BrainSpace won $200,000 from the Seattle Angel Conference to develop an automated external ventricular drain that monitors intracranial pressure; the Bothell startup built a working model with $100,000 in self-funding. Four other finalists — Violett, PetHub, Curie and EarthUP — competed in the conference that trains new accredited angel investors and has invested $4.6 million in 39 startups over ten years.
Seattle appraisal startup Aloft raises $20M Series A led by Fifth Wall, bringing total funding to $25M
Seattle startup Aloft raised $20 million in a Series A led by Fifth Wall to expand its appraisal software that delivers quotes in two minutes and facilitates inspections; the company has annualized revenue in the millions, works with dozens of national and regional lenders, and has raised $25 million total. Founded less than a year ago by CEO Travis Soukup and co‑founder Yongxing Deng, Aloft operates in Seattle and Portland and plans further expansion.
Andreessen Horowitz hires Seattle gaming vet James Gwertzman as first Seattle-based general partner
Andreessen Horowitz has hired Seattle gaming veteran James Gwertzman as its first general partner based in the Seattle region to join the firm’s consumer investing team focused on gaming. Gwertzman, who sold PlayFab to Microsoft in 2018 and will leave Microsoft later this month, joins a16z as it doubles down on gaming alongside hires like Riot’s Jon Lai and investments such as a $5 million round in Seattle-based Irreverent Labs.
Andreessen Horowitz leads $5M round for Rahul Sood’s Irreverent Labs to build NFT, blockchain and AI-powered metaverse game
Seattle startup Irreverent Labs, led by entrepreneur Rahul Sood, raised $5 million in a round led by Andreessen Horowitz to build an NFT- and blockchain-based metaverse game that uses AI-powered, ownable characters and will debut its first game next month.
OfferUp appoints Melinda Starbird as first chief people and diversity officer; Steve Hobbs named Washington secretary of state; Convoy engineering VP Tim Prouty moves to Headway
OfferUp named Melinda Starbird as its first chief people and diversity officer; she previously held senior HR roles at Auth0, Avanade, Whitepages and Hiya. The brief also reports Washington Gov. Inslee appointed State Senator Steve Hobbs as secretary of state effective Nov. 22, and Convoy VP of engineering Tim Prouty left to become VP of engineering at mental-health platform Headway.
Flyhomes launches ‘Flyhomes Guarantee for Buyers’ to let clients exit within a year with waived seller commission
Seattle-based real estate startup Flyhomes launched the Flyhomes Guarantee for Buyers, which lets clients who want to move within a year of closing have Flyhomes list the home and waive its commission (buyers still pay the buyer’s agent and selling costs). Founded in 2016, Flyhomes has helped over 3,000 families buy nearly $3 billion in homes with cash-offer short-term loans and faces competition from traditional brokerages, iBuyers like Opendoor and Offerpad, and Zillow.
Former Facebook Seattle Head Vijaye Raji Raises $10.4M Series A for Statsig to Speed Feature Rollouts
Vijaye Raji, a former Facebook and Microsoft engineering leader, raised $10.4 million in Series A funding for Statsig, a Kirkland startup that helps developers quickly roll out and measure product features. Sequoia Capital, Madrona Venture Group and angel investors participated, and the company aims to bring Facebook-style experimentation tools to broader developer teams.
Qualtrics acquires Seattle journey-orchestration startup Usermind to bolster XM Directory
Qualtrics has acquired Seattle-based marketing startup Usermind, a 2013-founded leader in journey orchestration with about 40 employees, to strengthen its Qualtrics XM Directory and customer interaction tracking. Usermind, led by CEO Michel Feaster, raised $14 million in January, weathered pandemic layoffs, and saw increased demand as companies accelerated digital adoption.
Coinme raises $10M to expand crypto cash network enabling bitcoin purchases at 15,000+ MoneyGram and Coinstar locations
Seattle-based Coinme raised $10 million from existing investors to expand its cryptocurrency cash network that lets customers buy and sell bitcoin at over 15,000 physical locations through partners like MoneyGram and Coinstar.
Flyhomes raises $150 million to scale cash-offer homebuying and mortgage services nationwide
Seattle startup Flyhomes raised $150 million to expand its cash-offer homebuying model and integrated mortgage and selling services nationwide, positioning itself against iBuyers and Zillow. CEO Tushar Garg said the funding supports building an end-to-end home-buying experience that gives clients a competitive edge in a chaotic market.
Nautilus Biotechnology (NAUT) goes public via SPAC, raises $345 million to commercialize proteome analysis
Nautilus Biotechnology, co-founded by Sujal Patel and Parag Mallick, is going public on Nasdaq as NAUT through a SPAC merger that raised $345 million to advance a new proteome analysis platform aimed at accelerating biomedical research and drug development. Institutional backers include Bezos Expeditions, Vulcan Capital and Madrona Venture Group, and the deal closes on the 25th anniversary of Patel’s arrival in Seattle.
Bain Capital and Crosspoint Capital to buy Seattle cybersecurity firm ExtraHop for $900 million; founders stay
Private equity firms Bain Capital and Crosspoint Capital will acquire Seattle cybersecurity startup ExtraHop for $900 million; the 14-year-old company, with about 1,000 customers and 500+ employees, reported $100 million ARR and expects 40% growth this year. Founders and current leaders will remain, the deal aims to accelerate growth and is expected to close this summer.
Coinbase IPO Soars to $85 Billion, Nets Windfalls for Early Backers Including Version One Ventures
Coinbase’s IPO pushed its valuation to $85 billion and delivered major returns to early investors like Version One Ventures, which made a highly profitable bet years ago. The article examines how Seattle and Pacific Northwest investors view crypto and blockchain as the region seeks to grow its fintech presence amid emerging local startups and initiatives.
Nautilus Biotechnology to go public via Arya Sciences Acquisition Corp III SPAC, raising $350M at $900M valuation
Nautilus Biotechnology, a Seattle proteomics startup led by Sujal Patel and Parag Mallick, will go public via a SPAC merger with Arya Sciences Acquisition Corp III, raising about $350 million and valuing the company at $900 million. The deal includes a $150 million SPAC component and a $200 million PIPE, expects to close in Q2, and the combined company will trade on Nasdaq as NAUT.
Tanium raises $150 million from Ontario Teachers’ Pension Plan after HQ move to Kirkland, Wash.
Tanium, a cybersecurity firm that relocated its headquarters from Emeryville, Calif. to Kirkland, Wash., raised $150 million in common stock from the Ontario Teachers’ Pension Plan to fund growth and expand its Seattle-area engineering presence. The privately held company, co-founded by David and Orion Hindawi, reported over $430 million in revenue in 2019 and now employs about 1,500 people.
Usermind raises $14M led by WestRiver Group as pandemic-driven digital demand boosts Seattle startup
Seattle marketing startup Usermind raised $14 million in a funding round led by WestRiver Group as demand for digital customer-experience software surged during the pandemic; total funding is $60 million and headcount has recovered to just over 50 employees.
Nautilus Biotechnology hires ex-Smartsheet, Isilon and GenapSys leaders as it scales proteome platform after $76M Series B
Nautilus Biotechnology, a stealthy startup co-founded by Sujal Patel and Parag Mallick, has hired three senior executives — Chris Blessington, Anna Mowry, and Subra Sankar — to expand its team and accelerate development of a platform to quantify the human proteome after a $76 million Series B.
GeekWire Podcast: Salesforce to buy Slack for $27.7B; AWS surprises at re:Invent; Tanium (valued $9B, $430M revenue) moves HQ to Seattle
GeekWire Podcast discusses Salesforce’s $27.7 billion acquisition of Slack, surprising announcements from AWS at re:Invent, and cybersecurity firm Tanium relocating its headquarters to the Seattle region with $9 billion valuation and $430M revenue, with commentary from Madrona’s Matt McIlwain on regional and cloud/enterprise implications.
'Slackforce,' AWS re:Invent, and Seattle's new $9B tech company
This week on the GeekWire Podcast: Salesforce strikes a deal to acquire Slack for $27.7 billion; Amazon Web Services makes some surprising news at its annual re:Invent cloud conference; and a new tech giant arrives in our backyard. Joining us on this episode is Matt McIlwain, managing director at Seattle-based venture capital firm Madrona Venture Group, offering his commentary on the implications of these developments in the world of cloud and enterprise technology. Special bonus: Listen to the end of the show for a new installment of our GeekWire Podcast trivia contest, with a chance to win a GeekWire mask…
Ignition Partners investors spin out Fuse Venture Partners led by Kellan Carter, Cameron Borumand and Seahawks star Bobby Wagner
A group of investors from Seattle VC firm Ignition Partners, including managing partner John Connors, have launched a spinoff called Fuse Venture Partners led by general partners Kellan Carter and Cameron Borumand and featuring Seahawks linebacker Bobby Wagner as a venture partner. Ignite will sunset its brand while Fuse focuses on doubling down in Seattle and managing new investments, with Wagner committing to active involvement.
Accolade prices IPO at $22, raises $220M and debuts on Nasdaq at $1.2B valuation as shares jump 40%
Health benefits platform Accolade priced its IPO at $22 per share, raising $220 million and debuting on Nasdaq with a $1.2 billion valuation; shares rose over 40% to $30.90 in early trading. The Seattle- and Philadelphia-based company, led by CEO Raj Singh, serves employers with a subscription model and reported $132.5 million revenue for fiscal 2020, with four customers contributing 59% of that revenue.
Accolade files IPO to sell 8.75M shares at $19–$21, seeks up to $211M and ~$1B valuation; will trade as ACCD
Accolade priced 8.75 million IPO shares at $19–$21 to raise up to $211 million, aiming for a ~ $1 billion valuation and Nasdaq ticker ACCD, positioning itself as Seattle's first public company of 2020. The health benefits platform reported $132.5 million revenue and a $51.3 million net loss for the fiscal year ending Feb. 29, serves 1.6 million members across 58 corporate customers, and estimates a $24 billion total addressable market.
