A Closer Look at the Southeast Private Placement Market
Q4 2016: Private Placement Issuers Raise $600MM+ in SC, NC, and GA
Q4 2016 saw a total of 96 successfully closed private placement capital raises, totaling just under $632MM, across South Carolina, North Carolina, and Georgia. Of those successful capital raises, 15 were greater than $10MM, 75 were less than $10MM, and 6 were for an undisclosed amount. Across all three states, the Internet Software and Services industry led the way with 9 capital raises, totaling $18.683MM, in Q4 2016.
Q4 2016 Private Placement Statistics* – NC, SC, and GA
| Total # of Closed Capital Raises | 96 | Total Capital Raise Volume ($MM) | $631.631 |
|---|---|---|---|
| Median Raise ($MM) | $1.52 | Average Raise ($MM) | $7.018 |
| # of GA Transactions | 45 | # of NC Transactions | 44 |
| # of SC Transactions | 7 |
* for deals with disclosed terms
Q4 2016 Capital Raises by Sector – NC, SC, and GA
Source: S&P Capital IQ
Q4 2016 Private Placement Capital Raises – NC, SC, and GA
| Date | Issuer | Amount ($MM) | Location | Selected Investors | Use of Proceeds | Business Description |
| 12/30/2016 | Briar Patch Investments, LLC | $8.91 | Canton, GA | Undisclosed | $470,000 of proceeds will be used for management and consulting fees | Real estate investment fund |
| 12/30/2016 | Royal Energy Resources, Inc. (OTCPK:ROYE) | $2.00 | Charleston, SC | Undisclosed | Undisclosed | Focuses on the acquisition of coal, oil, gas, and renewable energy. |
| 12/28/2016 | Galectin Therapeutics, Inc. (NasdaqCM:GALT) | $1.00 | Norcross, GA | Undisclosed | Clinical trial funding, particularly NASH-CX trial, and planned expenditures | Clinical stage biopharmaceutical company that develops drugs for fibrotic diseases and cancer |
| 12/27/2016 | Maxwellton Investors, LLC | $2.95 | Peachtree City, GA | Undisclosed | $250,000 of the proceeds will be used to make certain payments to executive officers, directors or promoters. | Real estate investment fund |
| 12/23/2016 | Sandler Investors, LLC | $2.68 | Peachtree City, GA | Undisclosed | N/A | Real estate investment fund |
| 12/21/2016 | Sparta Pink Investors, LLC | $3.38 | Peachtree City, GA | Undisclosed | N/A | Real estate investment fund |
| 12/16/2016 | Webb Creek Management Group, LLC | $2.69 | Rome, GA | Undisclosed | $268,520 of proceeds will be used to pay executives, directors, or promoters | Full-service consulting firm that specializes in providing a variety of services to landowners. Webb Creek helps landowners identify alternative uses of their property to maximize ROI. |
| 12/16/2016 | KWIPPED, Inc. | $1.00 | Wilmington, NC | VentureSouth | Lease office space to accommodate growing staff | Online equipment rental marketplace |
| 12/16/2016 | Alrgn Bio, Inc. | $0.95 | Greensboro, NC | Undisclosed | Working capital purposes, which may include normal compensation to executive officers | Biotech company developing reduced-allergen peanuts |
| 12/16/2016 | Legend Oil and Gas, Ltd. (OTCPK:LOGL) | $0.30 | Alpharetta, GA | Hillair Capital Management LLC | Undisclosed | Crude oil hauling and trucking company with principal operations in the Bakken region of North Dakota. |
| 12/15/2016 | Tralongo, LLC | $55.00 | Atlanta, GA | Bankers Healthcare Group LLC; Freedom 3 Capital | Finance growth throughout the US | Dental practice management company |
| 12/15/2016 | Sand Valley Investors, LLC | $7.41 | Evans, GA | Undisclosed | $175,000 will be used for consulting fees | Real estate investment fund |
| 12/15/2016 | Pack Purchase, Inc. | $2.00 | Raleigh, NC | Undisclosed | Working capital purposes, which may include normal compensation to executive officers | Now dba Canopy, the company provides lawn-care services |
| 12/15/2016 | ApolloMD Physician Partners, Inc. | $0.72 | Atlanta, GA | Undisclosed | Undisclosed | Physician management company that partners with hospitals to provide enhanced patient care |
| 12/14/2016 | Femasys Inc. | $40.00 | Suwanee, GA | Salem Partners Wealth Management, LLC | Support the pivotal testing of FemBloc | Developer of permanent contraceptive solution for women |
| 12/14/2016 | Concord Hospitality Enterprises Company | $18.78 | Raleigh, NC | Undisclosed | Undisclosed | Hotel development, ownership, and management company |
| 12/12/2016 | Medovex Corporation (NasdaqCM:MDVX) | $1.00 | Atlanta, GA | Undisclosed | Fund future growth and complement existing balance sheet | Medical technology development company |
| 12/7/2016 | Pendo.io, Inc. | $20.00 | Raleigh, NC | Battery Ventures; Core Capital Partners; Spark Capital Partners, LLC; IDEA Fund Partners; Contour Venture Partners; Salesforce Ventures | Accelerate growth and expand product capabilities | Customer analytics platform for product managers |
| 12/7/2016 | Prep Initiatives, LLC | $0.36 | Atlanta, GA | Undisclosed | Undisclosed | Commercial real estate company |
| 12/6/2016 | Springbot LLC | $10.06 | Atlanta, GA | TTV Capital; TechOperators; Harbert Growth Partners | Expand sales and marketing, including the launch of the Springbot eCommerce Scorecard | eCommerce marketing automation platform |
| 12/6/2016 | LG Property, LLC | $4.07 | Clayton, GA | Undisclosed | Undisclosed | Real estate investment fund |
| 12/6/2016 | Lodebar Investors LLC | $3.50 | Peachtree City, GA | Undisclosed | Undisclosed | Real estate investment fund |
| 12/6/2016 | Causam Energy, Inc. | Undisclosed | Durham, NC | PRTI, Inc. | Proceeds will be used to harness and monetize waste materials, beginning with car tires | Technology company developing communication solutions for the intelligent power grid |
| 12/6/2016 | ThreatSwitch Inc. | $0.05 | Charlotte, NC | Mach37, LLC | Undisclosed | Software platform for federal contractors to manage compliance activities |
| 12/5/2016 | Avadim Technologies, Inc. | $0.59 | Asheville, NC | Undisclosed | Continuing to fund R&D and product growth | Life sciences company developing a new class of therapies for skin-related diseases |
| 12/5/2016 | Carbon Conversions, Inc. | Undisclosed | Lake City, SC | Hexcel Corporation (NYSE:HXL) | Undisclosed | Recycler of carbon-reinforced parts to make new, advanced materials |
| 12/5/2016 | Metabolon, Inc. | $30.00 | Durham, NC | Essex Woodlands Health Ventures | Further develop and commercialize pipeline of precision medicine | Biotech company that manufactures and develops products in the precision-medicine space |
| 12/1/2016 | Republic Wireless, Inc. | $30.00 | Raleigh, NC | Bandwidth.com, Inc. | Fund accelerated product development and expanded marketing | Mobile virtual network operator that sells low cost mobile phone service that defaults to Wi-Fi |
| 12/1/2016 | EcoVest Capital, Inc. | $5.32 | Atlanta, GA | Undisclosed | Undisclosed | Real estate development company focusing on sustainable investment opportunities |
| 12/1/2016 | Pronto Technologies, LLC | $1.25 | Atlanta, GA | Undisclosed | Undisclosed | Technology-enabled home repair company |
| 11/29/2016 | FarmBurger, LLC | $8.00 | Atlanta, GA | Georgia Oak Partners, LLC | Fuel expansion across the Southeast | Atlanta-based upscale burger joint |
| 11/29/2016 | Legend Oil and Gas, Ltd. (OTCPK:LOGL) | $0.28 | Alpharetta, GA | Hillair Capital Management LLC | Undisclosed | Crude oil hauling and trucking company with principal operations in the Bakken region of North Dakota. |
| 11/28/2016 | Little Pumpkin Creek North Investments, LLC | $3.99 | Rome, GA | Undisclosed | Undisclosed | Real estate investment fund |
| 11/23/2016 | Mashburn LLC | $3.50 | Atlanta, GA | Undisclosed | $100,000 of the proceeds will be used to repay a loan previously provided to the company by an officer. | Men’s clothing shop founded in 2007 |
| 11/21/2016 | Creative Allies, Inc. | $0.23 | Raleigh, NC | Undisclosed | Undisclosed | Integrated marketing firm that focuses on helping celebrity and consumer brands execute marketing campaigns and engage customers, specifically millennials. |
| 11/21/2016 | Lucena Research LLC | $1.00 | Atlanta, GA | Undisclosed | Undisclosed | Developer of decision-support technologies for investment professionals, including hedge funds and wealth advisors. |
| 11/17/2016 | Avadim Technologies, Inc. | $0.67 | Asheville, NC | Undisclosed | Continuing to fund R&D and product growth | Life sciences company developing a new class of therapies for skin-related diseases |
| 11/16/2016 | Silbo Inc. | $0.25 | Raleigh, NC | Undisclosed | Undisclosed | SaaS company developing amateur sports league management software |
| 11/16/2016 | Fineline Technologies, Inc. | Undisclosed | Norcross, GA | Summit Partners LLP | Further expand its leadership position in the data and RFID solutions market globally and to expand the solutions to retailers and suppliers around the world. | Supplier of retail ticketing, RFID, and barcode labeling |
| 11/16/2016 | T Stamp LLC | Undisclosed | Atlanta, GA | Second Century Ventures, LLC | Undisclosed | Identity verification platform that uses social media and other publicly available data to verify user’s identity, and provide a unique FICO-like trust score |
| 11/16/2016 | Phononic, Inc. | $71.00 | Durham, NC | Oak Investment Partners; Venrock; Welcome Trust, Investment Division; CI Financial Corp (TSX:CIX); WL Ross & Co. LLC; GGV Capital; UBS Wealth Management AG; Tsing Capital; Lookout Capital, LLC; Rex Health Ventures; Eastwood Capital Corp. | Grow the sales and marketing organization | Developer of new solid-state refrigeration technology |
| 11/15/2016 | AvidXchange, Inc. | $18.00 | Charlotte, NC | Fifth Third Capital Holdings, LLC; Pivot Investment Partners LLC | Development of new technologies, new sales channels, and hire staff | Provides automated A/P solutions and other accounting software |
| 11/15/2016 | Kyle Court, LLC | $0.83 | Concord, NC | Undisclosed | Undisclosed | Commercial real estate company |
| 11/15/2016 | Dynepic, Inc. | $0.47 | Charleston, SC | Undisclosed | Undisclosed | Maker of the “Internet of Kids,” a safe, social platform allowing kids to connect with friends, apps, and devices based on parent permissions. |
| 11/14/2016 | Intent Solutions, Inc. | $1.50 | Atlanta, GA | Undisclosed | Drive growth, support ongoing technology development, and sales and marketing support | Healthcare technology company developing solutions, for clinical research, pain management and specialized pharmacy |
| 11/14/2016 | 2ULaundry, Inc. | $0.40 | Charlotte, NC | Undisclosed | Undisclosed | Technology-enabled laundry company |
| 11/10/2016 | R65 Labs, Inc. | $3.01 | Durham, NC | Undisclosed | Undisclosed | Software development company in the healthcare space |
| 11/10/2016 | Undercover Colors, Inc. | $5.54 | Raleigh, NC | Undisclosed | Undisclosed | Startup that is developing nail polish that alerts the wearer to the presence of common date rape drugs in drinks |
| 11/8/2016 | Avadim Technologies, Inc. | $1.54 | Asheville, NC | Undisclosed | Continuing to fund R&D and product growth | Life sciences company developing a new class of therapies for skin-related diseases |
| 11/7/2016 | PLI, LLP | $12.50 | Asheville, NC | Mosaic Capital Partners | Undisclosed | Keycard manufacturer for the hotel and convention industry |
| 11/7/2016 | Anuvia Plant Nutrients | $23.00 | South Carolina | TPG Capital, L.P.; Evans Properties, Inc.; Pontifax Ltd.; Enterprise Florida, Inc., Investment Arm; Osceola Capital Management, LLC; AIS JV | Accelerate growth opportunities, utilization of food waste, and product development | Manufacturer of high-tech, sustainable fertilizer products |
| 11/7/2016 | SinnoVita, Inc. | $0.50 | Raleigh, NC | Undisclosed | Undisclosed | Undisclosed |
| 11/3/2016 | Atomized Inc. | $2.50 | Atlanta, GA | Undisclosed | Increase product marketing efforts and add members to leadership team | Maker of cloud-based visual marketing calendars |
| 11/3/2016 | Rimidi Diabetes, Inc. | $0.70 | Atlanta, GA | Undisclosed | Undisclosed | Cloud-based enterprise solution for diabetes management |
| 11/2/2016 | AgTech Accelerator | $8.50 | Durham, NC | Arch Venture Partners, L.P.; Harris & Harris Group, Inc. (NasdaqGM:TINY); Flagship Pioneering; Bayer Aktiengesellschaft (DB:BAYN); Elanco Animal Health, Inc.; Hatteras Venture Partners; Syngenta Ventures; Mountain Group Capital, LLC; Alexandria Venture Investments; Pappas Capital, LLC | Continue to discover and develop emerging agricultural technology startups | A unique startup accelerator focused on discovering and developing emerging agricultural technology companies. |
| 11/2/2016 | Presidential Concepts, LLC | $0.58 | Atlanta, GA | Undisclosed | Undisclosed | Commercial real estate company |
| 11/2/2016 | Iconic Therapeutics, Inc. | $48.56 | Atlanta, GA | H.I.G. Capital, LLC; MPM Capital; Osage Partners LLC; HBM Healthcare Investments AG (SWX:HBMN); HBM Partners Ltd.; Lundbeckfond Invest A/S; Cormorant Asset Management, LLC; Xeraya Capital Sdn Bhd. | Executive salaries and advance development of lead molecule ICON-1 | Clinical-stage biopharmaceutical company dedicated to translating scientific insight into breakthrough medicines for serious diseases. |
| 11/1/2016 | SaaSOptics, LLC | $1.80 | Atlanta, GA | TechStars, LLC | Fuel future growth through increased sales and marketing efforts | Cloud-based financial solution for subscription businesses providing affordable, comprehensive GAAP-compliant revenue reporting. |
| 11/1/2016 | Avadim Technologies, Inc. | $1.05 | Asheville, NC | Undisclosed | Continuing to fund R&D and product growth | Life sciences company developing a new class of therapies for skin-related diseases |
| 10/31/2016 | Legend Oil and Gas, Ltd. (OTCPK:LOGL) | $0.40 | Alpharetta, GA | Hillair Capital Management LLC | Undisclosed | Crude oil hauling and trucking company with principal operations in the Bakken region of North Dakota. |
| 10/28/2016 | Neurun, Inc. | $0.06 | Durham, NC | Undisclosed | Undisclosed | Creator of interactive video course maps for competitive runners |
| 10/27/2016 | Infina Connect Healthcare Systems, Inc. | $0.10 | Cary, NC | Undisclosed | Undisclosed | Digital health company focusing on coordinated care solutions for specialist referrals |
| 10/27/2016 | Legend Oil and Gas, Ltd. (OTCPK:LOGL) | $1.45 | Alpharetta, GA | Hillair Capital Management LLC | Undisclosed | Crude oil hauling and trucking company with principal operations in the Bakken region of North Dakota. |
| 10/26/2016 | Jubi, Inc. | $0.57 | Alpharetta, GA | Teamsourcing | Undisclosed | Digital learning platform for employee training |
| 10/26/2016 | SinnovaTek, Inc. | $0.10 | Raleigh, NC | Undisclosed | Undisclosed | Provider of turn-key food processing systems |
| 10/25/2016 | Avadim Technologies, Inc. | $0.58 | Asheville, NC | Undisclosed | Continuing to fund R&D and product growth | Life sciences company developing a new class of therapies for skin-related diseases |
| 10/24/2016 | Blue Sphere Corp. (OTCPK:BLSP) | $1.00 | Charlotte, NC | Undisclosed | $100,000 of proceeds will be used to pay executives, promoters, or directors | Project integrator in the clean energy production and waste to energy industries |
| 10/24/2016 | Lucky Bucks Inc. | Undisclosed | Norcross, GA | Quantum International Income Corp. (TSXV:QIC); Trive Capital | Support continued growth and its highly capable management team in its acquisitive growth strategy. | Owner and operator of digital gaming terminals |
| 10/24/2016 | K4Connect, Inc. | $8.00 | Raleigh, NC | Sierra Ventures; Lowe’s Companies, Inc. (NYSE:LOW); Intel Capital; Stonehenge Growth Equity Partners; Better Ventures, LLC; Traverse Venture Partners; RGAx LLC | Accelerate the growth of its first product, K4Community | Provider of proprietary connected home solutions for seniors |
| 10/24/2016 | Anutra Medical Inc. | $2.33 | Morrisville, NC | Undisclosed | Undisclosed | Maker of local anesthetic delivery system |
| 10/22/2016 | Credda Capital LLC | $1.16 | Spartanburg, SC | Undisclosed | Undisclosed | Consumer finance company that provides credit for everyday purchases. |
| 10/21/2016 | Ob Hospitalist Group, Inc. | $0.34 | Mauldin, SC | Undisclosed | Undisclosed | Provider of OB/GYN hospitalists across 27 states |
| 10/21/2016 | Dragon Army Apps LLC | $0.33 | Atlanta, GA | Undisclosed | Undisclosed | Development studio that builds mobile experiences for brands |
| 10/20/2016 | AvidXchange, Inc. | $3.50 | Charlotte, NC | Undisclosed | $210,000 of proceeds will be used to pay directors, executives, and promoters | Provides automated A/P solutions and other accounting software |
| 10/20/2016 | Apex Software Technologies, Inc. | Undisclosed | Roswell, GA | Serent Capital | Invest further in existing products and services | Maker of cloud-based payroll and employer services tools |
| 10/19/2016 | Entegrion, Inc. | $4.20 | Research Triangle, NC | Undisclosed | Proceeds will be used for working capital purposes | Develops and delivers products that address unmet needs in military healthcare and have attractive commercial applications. |
| 10/18/2016 | Social Beverage Company, LLC | $0.40 | Raleigh, NC | Undisclosed | Undisclosed | Craft vodka distillery |
| 10/17/2016 | Midwestern Financial, LLC | $2.25 | Savannah, GA | Undisclosed | Undisclosed | Undisclosed |
| 10/17/2016 | NeuroTronik, Inc. | $0.33 | Durham, NC | Undisclosed | Undisclosed | Develops medical technology for the treatment of acute heart failure syndrome |
| 10/16/2016 | SimCore Technologies, Inc. | $0.50 | Atlanta, GA | Undisclosed | $300,000 of proceeds will be used to pay executive officers, directors, or promoters | Developer of software for healthcare education and safety |
| 10/14/2016 | Carolina Lithotripsy, a Limited Partnership | $0.12 | Fayetteville, NC | Undisclosed | Undisclosed | Provider of lithotripsy services, a minimally-invasive treatment for kidney stones |
| 10/13/2016 | Carolina Trust BancShares, Inc. (NasdaqCM:CART) | $10.00 | Lincolnton, NC | Undisclosed | General corporate purposes, investment in its bank subsidiary, and to redeem the remaining $2,580,000 of its outstanding preferred securities. | Provides general commercial and retail banking products and services for individuals, professionals, and small mid-sized businesses in the Lincoln County and surrounding areas in North Carolina. |
| 10/13/2016 | Myxx Inc. | $0.40 | Cary, NC | Undisclosed | Working capital purposes, which may include normal compensation to executive officers | Meal-planning tool that connects consumers with brands and retailers |
| 10/12/2016 | Bardy Diagnostics, Inc. | $27.61 | Charlotte, NC | Ascension Ventures; SV Life Sciences Advisers, LLC; Health Enterprise Partners | Technology and sales and marketing investments | Medical technology company focusing on cardiac-health applications |
| 10/11/2016 | UserIQ, Inc. | $2.00 | Atlanta, GA | BIP Opportunities Fund, LP; BLH Venture Partners, LLC; Tech Square Ventures; Accelerant Equity, Llc | Expand marketing, sales, and customer success, and hire core engineering team | CRM platform that focuses on nurturing and growing relationships after the sale |
| 10/11/2016 | Children’s Healthcare of Atlanta Surgery Center at Meridian Mark Plaza, LLC | $0.61 | Atlanta, GA | Undisclosed | Undisclosed | Healthcare provider |
| 10/11/2016 | Luma Home Inc. | $12.50 | Atlanta, GA | Undisclosed | Undisclosed | Wi-Fi solutions company focusing on private homes |
| 10/10/2016 | YuppTV Inc. | $49.90 | Atlanta, GA | Emerald Media | Further expand global footprint and expand content library | Provider of South Asian TV content |
| 10/7/2016 | Avadim Technologies, Inc. | $0.63 | Asheville, NC | Undisclosed | Continuing to fund R&D and product growth | Life sciences company developing a new class of therapies for skin-related diseases |
| 10/6/2016 | American Caresource Holdings, Inc. (OTCPK:GNOW) | $0.20 | Atlanta, GA | Undisclosed | Undisclosed | Owns and operates 13 urgent and primary care centers in the east and southeastern US |
| 10/6/2016 | Lucerno Dynamics, LLC | $6.34 | Morrisville, NC | Undisclosed | Undisclosed | Biotech company focusing on technology to identify radiolabeled biomarkers in tissue quickly, safely, and inexpensively. |
| 10/5/2016 | Avadim Technologies, Inc. | $0.49 | Asheville, NC | Undisclosed | Continuing to fund R&D and product growth | Life sciences company developing a new class of therapies for skin-related diseases |
| 10/5/2016 | Avadim Technologies, Inc. | $1.79 | Asheville, NC | Undisclosed | Continuing to fund R&D and product growth | Life sciences company developing a new class of therapies for skin-related diseases |
| 10/4/2016 | Urban Offsets, Inc. | $0.30 | Greensboro, NC | Undisclosed | Undisclosed | Helps cities develop carbon offset projects |
| 10/3/2016 | YuppTV Inc. | $15.00 | Atlanta, GA | The Poarch Band of Creek Indians, Endowment Arm | Undisclosed | Provider of South Asian TV content |
| 10/1/2016 | Dealer Financial Holdings LLC | $0.30 | Landrum, SC | Undisclosed | Undisclosed | Holding company |
Source: S&P Capital IQ