What companies are finding funding or having a big exit? From startup investments to grants and acquisitions, Dallas Innovates tracks what’s happening in North Texas money. Sign up for our e-newsletter, and share your deal news here.
Dallas-Based Digital Health Firm Recuro Health Expands with New Acquisition
⟫ Recuro Health, a Dallas-based virtual health solutions company, has acquired California-based digital health solutions firm Competitive Health for an undisclosed amount. Recuro founder and CEO Michael Gorton said the move will help build out the integrated benefits portion of his company’s on-demand virtual services platform, allowing it to scale its services in areas like advocacy, companion care, and ancillary benefits.
The move comes after Recuro acquired local virtual health provider WellVia in April, in a move the company said would “significantly expand” its digital health capabilities. Last year Recuro landed a $15 million Series A funding round led by ARCH Venture Partners.
After the Series A round, Recuro acquired DFW-based MyLifeIQ, an epigenetics platform that transitions healthcare to precision medicine, and Minnesota-based SupDoc.
Cybersecurity Company TXOne Lands $70M Series B
⟫ Amid what it calls soaring global demand for cybersecurity services, a recent transplant to North Texas has raised new funds.
TXOne Networks, which focuses on operational technology (OT) networks and devices, announced landing a $70 million Series B funding round as it looks to expand its global presence and industry reach from its Americas headquarters in Irving.
Serving clients from industries ranging from pharmaceuticals and public transportation to aerospace and smart manufacturing, the Taiwan-based company said the new funding will help position it to capture a growing demand in the industrial control systems market.
The funding was led by VC firm TGVest Capital, which invested $20 million in the round. KAiA Capital, CDIB Capital Group, MediaTek, Ta Ya Venture Capital, and Simplo Technology Group were among 10 other investors in the Series B. The latest funding adds to the $23.7 million TXOne has previously raised, most recently with a $12.9 million Series A led by JAFCO Asia Investments and Jade Stone Jinghua Limited Partnership Fund that it raised last August.
Legendary Dallas Innovator John Carmack Raises $20M for Artificial General Intelligence Startup
⟫ John Carmack—the former CTO of VR giant Oculus—has taken goggle-gazing to the next level, programmed Doom and Quake, and founded a Mesquite-based space tourism startup. Now he’s on a mission he says “could change the course of human history” by raising $20 million for Keen Technologies, a new startup focused on artificial general intelligence (AGI)—the type of AI system that can carry out the functions of humans.
Carmack said the funding from outside investors is a “focusing effort,” forcing him to laser in on the problem with a “greater sense of discipline and determination,” since other peoples’ money is involved.
Former GitHub CEO Nat Friedman and Cue co-founder Daniel Gross led the $20 million funding round. Other individual investors included Stripe leader Patrick Collison and Shopify’s Tobi Lütke. VC firms Sequoia Capital and Austin-based Capital Factory also participated in Keen Technologies’ raise.
Venture Development Firm Catalyze Dallas Looks to Raise $10M
⟫ Venture development firm Catalyze Dallas reported raising $1 million in equity from three investors out of a $10 million offering for a fund titled Catalyze Dallas Holdings II LLC. The company works to commercialize innovations licensed or purchased from defense and aerospace companies. Catalyze’s portfolio includes Alpine Advanced Materials, a company commercializing nanocomposite material initially created by Lockheed Martin, and Metro Aerospace, which make 3D-printed aerospace parts.
Fort Worth-Based Harvest Returns Raises $780K for New Platform
⟫ Harvest Returns, a Fort Worth-based crowdfunding investment platform focused on agricultural technology and innovative practices reported raising $780,000 in equity from 33 investors out of a $1.3 million offering for a new fund titled Harvest Invest-043 LLC. Harvest Returns says it has a pool of more than 8,000 investors that have provided more than $17 million in funding to early-stage businesses in the industry since launching in 2016.
Local PE Firm Pharos Capital Sells Stake in Diagnostic Testing Company
⟫ After initially investing in 2016, Dallas- and Nashville-based private equity firm Pharos Capital has sold its stake in non-invasive diagnostic testing firm TechLab to Denmark-based developer and manufacturer of diagnostic products SSI Diagnostica.
SSI Diagnostica is is owned by Adelis Equity.
The move marks the third exit from Pharos’ third fund.
As part of the move, TechLab will retain its workforce, leadership, and R&D facilities in Virginia.
Parking Tech Startup ParkHub Acquires Local Payment Process Integrator
⟫ In an all-Dallas deal, parking technology provider ParkHub has acquired payment processing integrator Fuzse for an undisclosed amount.
Working with businesses, municipalities, and venues like AT&T Stadium and American Airlines Center, ParkHub was founded in 2010 to provide the software and hardware to manage parking operations and payments, while providing analytics and insights to customers. Fuzse was launched six years later and helps clients integrate payment processing solutions with mobile applications and e-commerce platforms. ParkHub said the deal will strengthen its position as a “driver of customer insights” in multiple industries.
As part of the deal, Fuzse founder and CEO Lane Connor, who has helped found and lead numerous local payment-focused ventures, will take on the role of president of payments at ParkHub. Connor has served as an advisor to ParkHub since 2015.
More Buyers Eye Acquisition of Signify Health That Could Value it at $8B
⟫ A bidding war could be brewing between UnitedHealth Group, Amazon, CVS Health Corp., and Option Care Health as they look to acquired Dallas-based health care platform Signify Health. According to Bloomberg, UnitedHealth currently has the highest bid at more than $30 per share for Signify, with Amazon not far behind. News of the potential deal saw Signify’s share prices rise by 41% after market close on Friday. Signify’s sale could potentially value the company at more than $8 billion, per the Wall Street Journal. While a final deal could come sooner, final bids for Signify are expected on September 6.
Property Consulting Firm Masterplan Acquired by New York Business
⟫ Masterplan, the local property consulting firm founded by former Dallas city councilman William Cothrum, has been acquired by New York firm Milrose Consultants, which focuses on commercial properties. Dallas Cothrum, Masterplan’s CEO, told the Dallas Morning News that the move will help expand Masterplan’s geographic reach and provide it with capital and technology to fuel that growth. According to the report, all of Masterplan’s more than 40 employees are staying with the firm.
D.C. PE Firm Godspeed Capital Management Adds to Its Fort Worth Architecture Platform
⟫ Washington, D.C.-based private equity firm Godspeed Capital Management has acquired local mechanical, electrical, and plumbing design firm Image Engineering Group, which focuses on sustainability in the educational, commercial, and retail markets. As part of the deal, Image will become part of Fort Worth-based Huckabee Architects, Godspeed’s architectural, engineering, and consulting growth platform. Following the close of the deal, Image will continue to be led by founder Don Penn and President Jonathan Penn.
Read more in Kevin Cummings’ recent Follow the Money deal roundup:
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