Maine companies raised roughly $7.9 million in venture capital in 10 deals during the third quarter, according to data collected and analyzed by Maine Startups Insider.
The total would make it one of the most successful fundraising quarters for Maine’s venture-backed companies over the past few years (besides the anomalous third quarter of 2017 when Vets First Choice raised its monster $223 million round).
Maine Startups Insider arrived at the $7.9 million number based on an analysis of company filings with the U.S. Securities and Exchange Commission, its own reporting, as well as the recently released Venture Monitor report from PitchBook and the National Venture Capital Association.
Nationally, VC investment topped $27.9 billion in the third quarter, pushing the year-to-date total to $84.3 billion—already a record amount of capital raised with a quarter remaining, according to the Venture Monitor.
Maine’s year-to-date total through the third quarter stands at around $22 million, according to Venture Monitor data.
Here’s a breakdown of the VC deals closed in Maine during the third quarter of 2018:
| Company | Deal Size | Investors | Deal Type | Close Date | Company Location |
|---|---|---|---|---|---|
| Pika Energy | $3.49M* | Undisclosed | Later-Stage VC | 9/7/18 | Westbrook |
| DAVO Technologies | $1.25M | Anania & Associates Investment Co. | Later-Stage VC | 9/5/18 | Westbrook |
| Ourly | $870,000 | Undisclosed | Angel | 9/4/18 | York |
| Mobile Price Card | $820,000 | CEI Ventures, Bangor Angels | Early-Stage VC | 8/15/18 | Portland |
| Ocean Approved | $420,000 | Undisclosed | Later-Stage VC | 9/27/18 | Saco |
| Maine Craft Distilling | $330,000 | Undisclosed | Later-Stage VC | 9/7/18 | Portland |
| MedRhythms | $300,000 | Maine Venture Fund, Maine Technology Institute | Early-Stage VC | August | Portland |
| Cranberry Island Boatworks | $200,000 | Undisclosed | Angel | 8/16/18 | |
| American Unagi | $125,000 | Undisclosed | Seed | 7/10/18 | Franklin |
| Ocean Renewable Power Co. | $100,000 | Undisclosed | Later-Stage VC | 7/20/18 | Portland |
| TOTAL | $7.905M |
The asterisk on Pika’s number is due to a discrepancy between the amount the company reported in a SEC filing on Sept. 7 ($1.9 million raised of a $6 million offering) and the amount PitchBook/NVCA reported in the Venture Monitor report ($3.49 million raised). Pika CEO Ben Polito did not respond to a request to clarify how much the company raised in the third quarter. Without that clarity, I’ve opted to go with the Venture Monitor’s higher number as it can incorporate investment dollars self-reported from the investors.
National reports unreliable
Long-time readers of Maine Startups Insider will know I always attach caveats to the national VC reports that aggregate relatively unvetted data.
For example, the Venture Monitor actually puts the total raised by Maine companies in the third quarter at $10.77 million. In this case, the number is inflated due to an error in how the national report interpreted a SEC filing by Ourly.
The Venture Monitor report lists the largest deal closed in the third quarter as being $4.29 million raised by York-based Ourly. However, this number is based on an amended SEC filing from September. I reported in February that Ourly had raised roughly $3.4 million in equity. The amended filing cited in the Venture Monitor report simply updates the amount raised to $4.29 million, meaning the total raised in Q3 was more like $870,000. Ourly CEO Mike Vien confirmed this for Maine Startups Insider.
The Venture Monitor report also did not include $300,000 raised by MedRhythms in August. The amount was part of a larger $5.3 million round, the vast majority of which closed in June.
Another example of unreliable national VC reports is the quarterly MoneyTree report from PwC and CB Insights. The MoneyTree report includes a single VC deal in Maine during the third quarter: Pika Energy’s $1.9 million, as reported in its SEC filing. I’ve reported on this in the past, but the MoneyTree report is notorious for underreporting VC investments in Maine because it refuses to include any deals that Maine Venture Fund is involved in because its methodology excludes deals involving government money.
Ourly’s amended filing, MedRhytms rolling close, and the vast difference between the Venture Monitor and the MoneyTree reports are perfect examples of why tracking the amount of capital raised by VC-backed companies in Maine on a quarterly basis is an inexact science.
Maine Startups Insider will continue to try to bring clarity to this important metric.
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