The investments come despite some uncertainty in the tech financing market, as investors express concern about high valuations and struggling tech stocks on the public market.
Area startups have had a busy week for financing, after at least three young companies pulled in more than $4 million each by Thursday.
Seattle software startup Shiftboard received $4 million, and DimensionalMechanics of Bellevue pulled in $4.7 million.
The funding rounds came despite an uncertain tech-financing market across the country. Venture-capital dollars have been slowing dramatically as investors express concern about high valuations and struggling technology stocks on the public market.
Shiftboard, which provides online scheduling and tracking tools for hourly workers, received its $4 million in a round led by Seattle-based Voyager Capital. The 14-year-old company brought in a new CEO in December to raise money and build a management team.
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CEO Sterling Wilson said he heard from a number of investors who were interested in the company but “sitting out” for a couple months to see how the market would shake out. But, he noted, the current conditions didn’t affect Shiftboard as much because it was looking to raise a relatively small seed-funding round.
“We’re not a unicorn; we’re not nearly as gigantic,” Wilson said, referring to Silicon Valley’s so-called “unicorn” companies, which have valuations of more than $1 billion.
Shiftboard has a 25-person team in its downtown Seattle office and plans to grow to more than 40 people by the end of the year.
Data released this week from Ernst & Young confirms that a Washington state company has not gone public since 2014, and that IPO activity across the nation has plunged.
Worldwide, 167 companies raised $12.1 billion in the first quarter of the year, a 70 percent drop from the same period a year ago.
Funding activity is still down as well, said Greg Beams, a partner at Ernst & Young in Seattle, but he remains hopeful that funding and IPO activity will pick up in the region, especially for biotech and software companies.
DimensionalMechanics, the Bellevue startup, announced its $4.7 million Series A financing round Thursday. The company is building an enterprise from the founders’ 15 years of research into artificial intelligence. It is developing an AI platform that companies can use to quickly get answers about their data.
The software, called NeoPulse, is built to think like the human brain, co-founder Rajeev Dutt said.
“One key aspect of our platform is the ability to conceptualize,” he said. “It will pull in information very quickly and make connections and associations.”
The cloud-based technology is still in the early stages of development. Dutt and co-founder Dave Hebert plan to grow the nine-person team with the new funding round.
The week’s largest funding round, $16 million, went to Convoy, a trucking software startup in Seattle that announced another group of high-profile investors, just months after it signed a similar list to its seed round.
More information on the region’s funding numbers will be released in mid-April.