Electric Hydrogen Raises $198M To Cut Emissions, FalconX Snatches Up $150M

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.

This week was another good illustration of the fundraising market. Only five U.S.-based startups raised six-figure rounds and none even broke the $200 million mark. A year ago, it wasn’t uncommon for at least a trio of startups to raise a quarter-billion dollars every week. These are definitely much different times.

1. Electric Hydrogen, $198M, cleantech: With most companies looking to cut emissions, many investors are looking to put money into cleantech startups that can help them accomplish that feat. This week, they invested in Boston-based Electric Hydrogen, which closed a $198 million Series B—a mix of equity and venture debt—led by Fifth Wall Climate Tech. The round also consisted of an impressive list of strategic investors such as Amazon’s Climate Pledge Fund, Honeywell and Mitsubishi Heavy Industries. Electric Hydrogen has created its own patented approach to electrolysis—the process of producing hydrogen from electricity and water—designed for industrial applications. Those applications account for more than a third of global greenhouse gas emissions. The cleantech and clean energy sectors saw a record $10.1 billion invested in VC-backed startups last year, and $5.3 billion already has come into the market this year, according to Crunchbase data.

2. FalconX, $150M, crypto: No matter what happens in crypto, it seems like every week some startup locks up a huge round. This week, San Francisco-based FalconX was that startup, raising a $150 million Series D that more than doubled its valuation from just 10 months ago. The new round was led by GIC and B Capital, and values the company at $8 billion. In August, the company closed a $210 million Series C at a $3.75 billion valuation. The round also included investment from other big names like Thoma Bravo, Wellington Management, Adams Street and Tiger Global Management. FalconX’s platform allows institutions to access and manage their crypto assets. The crypto market has had a rocky go of it this year for investors. The two largest cryptocurrencies—Bitcoin and Ether—have lost more than half their value from their November highs, and some lending platforms, such as Celsius Network, suspended withdrawals and transfers due to market uncertainty and liquidity issues. Nevertheless, investors still seem intrigued. FalconX has now raised more than $430 million, according to the company.

3. Magic Eden, $130M, NFTs: Similar to its parent industry crypto, NFTs also are reportedly having some issues. Nevertheless, NFT marketplace Mountain View, California-based Magic Eden closed a $130 million round to reach a valuation of $1.6 billion this week. The round was co-led by Electric Capital and Greylock. Magic Eden’s marketplace allows users to create, buy and collect NFTs. Its primary marketplace has rolled out more than 250 projects since launching last year and its secondary market has more than 7,000 listed collections.

4. Alladapt Immunotherapeutics, $119M, biotech: If you have food allergies, Menlo Park, California-based Alladapt Immunotherapeutics may be a company to watch. The clinical-stage biopharmaceutical company closed a $119 million financing round led by Enavate Sciences this week. Those proceeds will be used to help the firm develop its ADP101 product, which the company says “has the potential to be the first FDA-approved therapy to treat the majority of U.S. food allergy patients.” Founded in 2018, the company has now raised $179 million, according to Crunchbase.

5. Prime Trust, $100M, fintech: Helping financial institutions compete in the digital world can be hard. Las Vegas-based Prime Trust tries to make it a little easier. The company closed a $100 million-plus Series B—with FIS, Fin Capital, Mercato Partners and Kraken Ventures among the leading investors, the company said. Prime Trust offers the actual infrastructure needed by crypto exchanges, on-ramps, wallet apps, broker dealers and banks to offer financial services in the digital world. The company will use the new proceeds to further push its own crypto IRA. Prime Trust has raised more than $170 million in funding, according to the company.

6. Ledger Investing, $75M, financial services: New York-based Ledger Investing, a marketplace for insurance risk, raised $75 million in Series B funding led by WestCap. Founded in 2016, the company has raised nearly $91 million, Crunchbase data shows.

7. Openly, $75M, insurance: Boston-based Openly, the technology-enabled provider of homeowners insurance, closed a $75 million Series C from Advance Venture Partners, Clocktower Technologu Ventures, Obvious Ventures and others. Founded in 2017, the company has raised more than $137 million, according to Crunchbase.

8. DEM BioPharma, $70M, biotech: Cambridge, Massachusetts-based immuno-oncology company DEM BioPharma raised an initial $70 million of financing led by founding investor Longwood Fund and Alta Partners.

9. MicroTransponder, $53M, medical devices: Austin, Texas-based neuroscience medical device developer MicroTransponder closed a $53 million Series E led by US Venture Partners. Founded in 2007, the company has raised $95 million, according to Crunchbase.

Autobooks, $50M, fintech: Detroit-based payment and accounting platform Autobooks raised a $50 million Series C round led by Macquarie Capital. Founded in 2015, the company has raised nearly $98 million, according to Crunchbase.

Big global deals

With the U.S. rounds rather small this week, the top three global rounds came from Europe.

• London-based fintech firm SumUp closed a venture round worth approximately $622 million.
• London-based energy company Newcleo raised a venture round worth approximately $317 million.
• Germany-based HR management and recruitment platform Personio closed a $200 million Series E.

Methodology

We tracked the largest rounds in the Crunchbase database that were raised by U.S.-based companies for the seven-day period of June 18-24. 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