Xpansiv Looks To Expand With $400M, Cyber Insurer Coalition Lands $250M

This is a weekly feature that runs down the week’s top 10 funding rounds in the U.S. Check out last week’s biggest funding rounds here.

Maybe companies were reluctant to announce new funding after the July 4th holiday, or maybe it was another indication of a slowing venture market, but July has started off slow—very slow. Only three rounds raised by U.S.-based startups reached nine figures. In fact, you could make the top 10 list this week raising $20 million. That is something that would never have happened last year.

1. Xpansiv, $400M, financial services: Carbon off-sets and renewable energy credits have become big business, and firms need a place to buy and sell. Blackstone clearly sees that. Funds managed by the private equity giant’s energy-focused investment business—Blackstone Energy Partners—committed $400 million to lead a strategic investment in Xpansiv. The New York-based company has developed a market-infrastructure platform for global carbon and environmental commodities—like voluntary carbon offsets or energy credits. That has become important as companies try to reach their ESG goals. Founded in 2018, Xpansiv has raised nearly $580 million, according to Crunchbase data.

2. Coalition, $250M, cyber insurance: While there may be a slowdown in funding to cybersecurity startups, this week was not a perfect illustration of that as two such companies made the top five. San Francisco-based Coalition closed a $250 million round at a $5 billion valuation—less than a year after it raised a $205 million Series E at a $3.5 billion-plus valuation. Actually, in about 15 months Coalition’s valuation has nearly tripled. The new round comes as the insurer has seen significant growth, increasing revenue nearly 200% from the prior year. Such growth also shows the growing importance of cyber insurance as an increase in cyberattacks through the past few years has elevated the need for companies to look for protection. The new round included participation from Allianz X, Valor Equity Partners, Kinetic Partners and other existing investors, the company said in a release. Founded in 2017, Coalition says it has raised $755 million.

3. Flexe, $119M, logistics: Investors’ interest in logistics and supply chain tech remains high as the world continues to try to overcome distribution issues born out of the pandemic. Seattle-based startup Flexe is the latest to turn that interest into a big round. The company raised a $119 million Series D at a $1 billion-plus post-money valuation. The round included new investments from funds and accounts managed by BlackRock, as well as funds and accounts advised by T. Rowe Price Associates and T. Rowe Price Investment Management, and Tiger Global, among others. Flexe’s programmatic logistics technology platform helps large retailers and other brands. It provides things such as scalable warehousing solutions and retail distribution. This has become big business due to the supply chain gridlock. VC-backed logistics startups have raised nearly $11.5 billion this year, according to Crunchbase data. While not on pace to reach the nearly $24.5 billion raised last year, it still represents significant dollars. Founded in 2013, Flexe has raised more than $260 million, Crunchbase data shows.

4. Tebra, $72M, health care: Digital health care was growing incrementally before the pandemic, but certainly has taken off since COVID made many people reluctant to go out and see a doctor. Tebra is the latest to take advantage of that enlarging market and growing investor interest, as the Newport Beach, California-based startup closed a round worth more than $72 million led by Golub Capital at a valuation greater than $1 billion. The round is a mix of both growth equity and debt financing. The company offers a digital platform to independent practices to help with everything from scheduling to payments to telehealth. Tebra was formed late last year after the merger of Kareo and PatientPop.

5. Swimlane, $70M, cybersecurity: Like we said earlier, it was a good week for a couple of cyber companies as far as fundraising went. Boulder, Colorado-based Swimlane locked up a $70 million growth funding round to help companies automate some of their cybersecurity needs. That has become necessary due to both a talent shortage in cyber and dwindling IT budgets to pay the talent that is available. The round was led by Activate Capital. Founded in 2014, the company has raised nearly $155 million, according to Crunchbase data.

6. Zeem Solutions, $50M, electric vehicles: Inglewood, California-based Zeem Solutions closed a $50 million capital commitment from a fund managed by ArcLight Capital Partners. Zeem allows companies to operate commercial electric vehicle fleets for a flat monthly rate, which includes vehicle lease, charging, maintenance and insurance.

7. Calyxo, $32.7M, medical devices: Pleasanton, California-based Calyxo, a medical device company focused on kidney stone treatments, closed a $32.7 million Series C led by Questa Capital and CRG. Founded in 2016, the company has raised more than $47 million, according to Crunchbase.

8. Deuna, $30M, e-commerce: Palo Alto, California-based checkout commerce startup Deuna raised a $30 million Series A led by Activant Capital. Founded in 2020, the company has raised $37 million to date, according to Crunchbase.

9. Kernal Biologics, $25M, biotech: Cambridge, Massachusetts-based mRNA-technology company Kernal Biologics closed a $25 million Series A led by Hummingbird Ventures. Founded in 2016, the company has raised $25 million, Crunchbase data shows.

10. Traba, $20M, staffing: Miami-based Traba, a marketplace for jobs at fulfillment centers and event venues, raised a $20 million Series A round led by Khosla. Founded last year, the company has raised nearly $24 million, according to Crunchbase.

Big global deals

Although U.S. startups may have had a slow week raising money, there were several large rounds raised globally.

• Swedish electric vehicle battery manufacturer Northvolt raised $2.75 billion in a new funding round.
• China-based drug research platform ClinChoice raised a $150 million Series E.
• Brazil-based consumer loan startup Creditas raised a $150 million round of new funding.

Methodology

We tracked the largest rounds in the Crunchbase database that were raised by U.S.-based companies for the seven-day period of July 2-8. Although most announced rounds are represented in the database, there could be a small time lag as some rounds are reported late in the week.

Illustration: Dom Guzman