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The DL - An inside view into Pacific Northwest Tech

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Hey! Welcome to The DL, a weekly newsletter about tech, startups, and investing in the Pacific Northw
 
August 12 · Issue #8 · View online
The DL
Hey! Welcome to The DL, a weekly newsletter about tech, startups, and investing in the Pacific Northwest. This week’s issue covers July’s venture deals, trends to watch in gaming, and the PNW’s best Airbnb.
If you have thoughts, questions, or comments, hit reply - I’d love to hear from you! 👋 Referred by a friend? Sign up here.

Also, THANK YOU to everyone who signed up and donated to the Obliteride last week! The Hutch raised over $2.5M for cancer research, and our DL community helped contribute over $2K to that total 🔥

July 2019 Venture Deals
$365M invested in these companies in July
$365M invested in these companies in July
Here’s a roundup of PNW startups that announced new fundraising rounds in the month of July. Looks like VCs weren’t on vacation just quite yet!

Series B and Later Rounds 🚀
  • Remitly - payments service for international remittances - $135M Series E led by Generation
  • Icertis - enterprise contract management platform - $115M Series E led by Greycroft and Premji Invest
  • Amperity - customer data management platform (Madrona company!) - $50M Series C led by Tiger Global
  • Clinicient - EMR and billing software for therapists - $17.25M Series D
  • vCita - small business management software - $15M round led by Forestay
  • Balena - platform for managing fleets of IoT devices - $14.4M Series B led by OpenView
  • Sterifre Medical - products for sterilizing healthcare devices- $8M Series B
Series A Rounds 🛫
  • AppViewX - network infrastructure automation and orchestration - $30M Series A led by Brighton Park
  • Rival Technologies - conversational surveys for market research - $6.5M round
  • Deako - smart lighting products for homebuilders - $3.5M round led by Columbia Pacific
Seed Rounds 🌱
  • Lexion - intelligent contract management platform - $4.2M seed round led by Madrona (!)
  • Genneve - telemedicine service for menopause - $4M seed round led by BlueRun
  • Edge Delta - distributed analytics platform for DevOps - $3M seed round led by MaC VC and Amity Ventures
  • Krowdsourced - database for commercial construction products - $1.2M seed round led by Rogue
  • WattBuy - electricity marketplace for consumers - $1.2M seed round led by Powerhouse Ventures
  • Lamda - stealth analytics company - $1M seed round

A few observations from me on this list:
  • There is a great diversity of VCs investing in Seattle startups, from seed deals to $100M+ later stage rounds.
  • It also looks like certain investors are honing in on the PNW market. In the last three months, Tiger Global has invested in four local startups: Flexe, Karat, Zenoti, and Amperity.
  • There are a lot of “management platforms.” Companies that automate repetitive, time-consuming, or difficult processes to allow customers to focus on their core businesses are becoming very valuable.

Gaming in Seattle - Ninja Battles and Three Trends to Watch
If you don't recognize this guy, this might be your reaction when you find out he makes $1M+ a MONTH playing video games
If you don't recognize this guy, this might be your reaction when you find out he makes $1M+ a MONTH playing video games
In addition to cloud, ecommerce, and machine learning, Seattle is a major hub for gaming. There are more than 400 gaming companies here that generate $28B in annual revenue and create 23K jobs.

This includes large companies like Valve, Microsoft/Xbox, PopCap/EA, Big Fish, DoubleDown, Bungie, Niantic, Amazon Game Studios, Nintendo, Facebook Gaming, and Wizards of the Coast, as well as startups like Tiny Build, Rec Room, and Matcherino.

Last week, one of the big announcements in gaming world was that Ninja decided to stop streaming on Twitch (Amazon) and start streaming on Mixer (Microsoft) instead. Ninja probably makes $1M+ a month playing video games, so I’m sure it wasn’t cheap for Microsoft to bring him over to Mixer, which only accounts for 3% of the live streaming market (vs. Twitch at 72%).

One of the main reasons this backyard ninja battle is interesting is because the gaming market is massive. At $150B of annual revenue, gaming is more than 5x bigger than Netflix’s video streaming market, and each of the big tech companies is positioning themselves to capture a piece of it.

If you want to learn more about what’s happening in gaming, here’s a longer article I wrote on Geekwire on the three trends to watch in gaming right now.

Other stuff I've been talking about

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About me: I work as an investor at Madrona Venture Group, a Seattle-based venture capital firm that has been early partners with companies like Amazon, Smartsheet, Apptio, and Redfin.
I’m writing this to connect with other people who are interested in what’s going on in PNW tech, so if you have thoughts, questions, or comments, hit reply - I’d love to hear from you! 👋

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