Each week, we’ll round up startup news from the UNC journalism students behind North Carolina Business News Wire. To read all of the students’ work covering public and private companies around the state, sign up for the daily newsletter.
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Durham-based SpokeHub raises $140,000
By Addison Lalier
A Durham-based tech company has raised $140,000 in a private stock offering, according to a filing with the Securities and Exchange Commission.
SpokeHub is a group-based mobile application that gives users the ability to create or join hubs around trending topics or areas of interest.
The app emphasizes the ability to create or join public or private hubs in order to provide a safe place for users to interact.
The social media company intends to raise a total of $500,000, with $360,000 remaining to be sold, through six investors.
SpokeHub is led by CEO Robert Hartsfield and co-founders Doug Armstrong and Richard Berryman III.
Armstrong, also chief technology officer, is responsible for the development of the social media platform. Prior to SpokeHub, he started and ran a mobile-app development and consulting company.
Berryman has over eight years experience with software sales, and prior to co-founding SpokeHub, has worked with Avalara, ChannelAdvisor and Blackboard.
SpokeHub launched in June 2017 and is available for download on all iOS and Android devices.
Companies relying on a Reg D exemption do not have to register their offering of securities with the SEC, but they must file what’s known as a Form D electronically with the SEC after they first sell their securities.
The filing can be found here.
Biotech company started by two UNC professors raises $5 million
By Lindsey Welch
Biotechnology company OncoTrap Inc. in Chapel Hill has raised $5 million, according to a filing Friday with the Securities and Exchange Commission.
The company was started by two UNC-Chapel Hill professors in 2016. The professors, Dr. Leaf Huang and Dr. Rihe Liu, have worked at the university for 12 years and 16 years respectively.
The money was raised in the form of equity. The offering is expected to last no more than a year and is not being made in connection with a business combination transaction, such as a merger, acquisition or exchange offer.
Huang is focused on biomedical engineering and works in the Laboratory of Drug Targeting, currently focusing on the development of nonverbal vectors for gene therapy. He recently received the 2018 Journal of Drug Targeting Lifetime Achievement award for his contributions to drug delivery and targeting.
Liu has a background in polymer physics and biochemistry and completed his postdoctoral work at Massachusetts General Hospital and Harvard Medical School before joining the UNC-CH faculty. He is currently an associate professor in the Division of Chemical Biology and Medicinal Chemistry.
Companies relying on a Reg D exemption do not have to register their offering of securities with the SEC, but they must file what’s known as a Form D electronically with the SEC after they first sell their securities.
Greenville-based RFPI raises $3.5 million in private stock offering
By Emily Brice
RFPI Inc., a North Carolina-based health care tech company, raised $3.5 million in a private stock offering, according to a Securities and Exchange Commission filing.
The Greenville-based company filed the Form D on Thursday and it did not disclose what it intended to do with the funds.
It last raised money in March, when it garnered $3.2 million from investors.
RFPI’s patented medical technology is non-invasive and works in real-time to visualize the physiology of blood flow and perfusion. Its technology is called iCertainty and can decrease post-procedural complication, reducing readmission rates and costs, as well and improving clinical quality.
RFPI is led by chairman and angel funder Phil Hodges and CEO Jeffery Basham. Hodges has over 30 years experience in health sciences and also sits on the board of directors for Mayne Pharma Group Ltd.
Basham also has extensive experience in the health care field and previously he was one of the founding CEOs in a group of companies that became Closure Medical, which was sold to Johnson & Johnson for $500 million.
Companies relying on a Reg D exemption do not have to register their offering of securities with the SEC, but they must file what’s known as a Form D electronically with the SEC after they first sell their securities.
The file can be found here.
Raleigh-based Dropsource raises $4.75 million
By Luke Bollinger
Dropsource, which operates an app development platform, has raised $4.75 million in a private equity offering, according to a Sept. 20 filing with the Securities and Exchange Commission.
Dropsource raised the money from 25 investors.
The company plans to hire six new employees by the end of the year, according to a company blog post from CEO Ben Saren.
“The funds will be used for expanding our product offerings, growing our team, entering new markets, and continuing to demonstrate extraordinary value for our community and customers,” Saren wrote.
The company also raised $3.1 million in November 2015.
Originally called Queue Software, the company was established in 2014 by two web engineers with the idea of developing a platform that allows users to create mobile phone apps without writing any code. They changed the company’s name to Dropsource soon after.
Founders Nate Frechette and Paul Berg act as chief technology officer and chief product officer, respectively.
Saren became CEO in August 2016 after working as vice president of customer development for four months.
Companies relying on a Reg D exemption do not have to register their offering of securities with the SEC, but they must file what’s known as a Form D electronically with the SEC after they first sell their securities.
*This segment included an error that has been fixed. The company’s name has been changed from Queue Software to Dropsource. The piece also mis-stated that directors and the CEO would be dividing a portion of the funds raised.
Raleigh-based mobile app company Stealz raises $2.3 million
By Sissy Rodriguez
Stealz Inc., better known to its app users as Get Stealz, has raised $2.3 million in a private debt offering, according to a filing Thursday with the Securities and Exchange Commission.
The company raised the money from 36 investors, according to the filing.
The mission of the company is to partner up with businesses to centralize their customer engagement efforts in one platform, a user-friendly mobile app.
The app encourages and enables customers to share photos of their experience on social media while frequenting the business. The business receives more organic, valuable exposure on social media, and the customer, in turn, earns points towards exclusive rewards at the business.
Stealz then collects actionable data about customers that use the app, and displays it in business owner’s own, customized, web-based dashboard.
Established in 2013, the Raleigh-based company was designed to help small businesses better market their products. But just a few years later Stealz is working with businesses across the U.S. and already has thousands of clients, including some big names such as Chick-fil-A, Krispy Kreme Doughnuts, Jersey Mike’s and Bojangles’.
In 2016, Stealz established a partnership with IBM Watson to further improve the app’s data analytics capabilities.
“Stealz is a mobile application that turns a business’s customers into a brand ambassador through social media.” said Chief Executive Officer Jim Zidar.
Zidar graduated from North Carolina State University with a degree in accounting and finance. Before starting Stealz, Zidar worked as a financial manager at Co-Options Consumer Access, a marketing firm.
Companies relying on a Reg D exemption do not have to register their offering of securities with the SEC, but they must file what’s known as a Form D electronically with the SEC after they first sell their securities.
Chapel Hill-based company has raised $65,000
By Taylor Streit
StartStopMove Inc. has raised $65,000 in a private debt offering, according to a filing Thursday morning with the Securities and Exchange Commission.
The Chapel Hill-based company plans to raise $300,000 with $235,000 remaining in the total offering.
The money was raised by five investors, according to the filing.
The founder of StartStopMove, Alain Glanzman, recently received his MBA from the Kenan-Flagler Business School at UNC-Chapel Hill.
Glanzman is currently the co-founder and chief executive officer at WalletFi, a digital wallet application for smartphones based in Raleigh.
Prior to receiving his MBA, Glanzman worked as a consultant for nonprofits and Fortune 500 companies.
Glanzman has held various entrepreneurial positions including working as a global product manager with WomanCare Global in London and as a consultant at Keen Strategy LLC in Raleigh.
Glanzman was also a venture capital MBA associate at IDEA Fund Partners and a entrepreneur at SoFi in San Francisco, California before leading the WalletFi and StartStopMove start-ups.
Glanzman has successfully launched products across the globe, including Europe, Africa and South America.
Companies relying on a Reg D exemption do not have to register their offering of securities with the SEC, but they must file what’s known as a Form D electronically with the SEC after they first sell their securities.
Durham-based NeuroPlus has raised nearly $700,000
By Bryce Lapping
A Durham, North Carolina-based company has now raised nearly $700,000 in a private stock offering, according to a filing with the Securities and Exchange Commission.
NeuroPlus Inc., whose flagship product shares a name with the company, filed the Form D on Wednesday. The company, which intends to raise a total of $1 million, did not indicate the intended use of the funds.
NeuroPlus describes itself as a product utilizing “innovative neurofeedback technology to help you practice focus and concentration,” according the company’s website.
While the Durham-based company’s product is not intended for treatment of any form of attention deficit disorder, a study by researchers at Duke University created hope the NeuroPlus might be used as a treatment for various types of attention deficit disorder.
“Parents were asking how we could use our technology to help improve attention and self-control, so NeuroPlus was created with the primary focus to develop a solution that children are comfortable with: video games,” CEO Jake Stauch said in a statement on the study. “We’re excited to see these results, showing NeuroPlus could address the needs of parents hoping to reduce inattention and hyperactivity in their children while also giving anyone, regardless of age, a way to sharpen and improve their focus.”
Companies relying on a Reg D exemption do not have to register their offering of securities with the SEC, but must file what’s known as a Form D electronically with the SEC after they first sell their securities.
The form can be found here.
FoodLogiQ, Durham food tech company, secures lead investor
By Charlotte Chilton
FoodLogiQ, a technology company focusing on traceability and transparency for food chains, has secured Renewal Funds as a lead investor for series B financing for an undisclosed amount.
Renewal Funds, which is headquartered in Vancouver, is a mission-based venture capitalist firm with a focus on food and technology investments. Its partnership with FoodLogiQ will go toward continuing the company’s rapid growth in the food technology industry as well as its main mission of mapping the world’s food chain.
FoodLogiQ, who has previously been funded by the Clarkston-Potomac Group, has seen tremendous growth to its customer base over the past six months.
Its customers include CKE restaurants, Five Guys Burger and Fries, the Hain Celestial Group, and Panda Restaurant Group.
“Renewal’s focus on food and tech companies at the forefront of social and environmental change aligns perfectly with FoodLogiQ’s mission,” chief executive officer, Dean Wiltse, said in a statement.
According to a company press release, Wiltse will also announce the investment at Wednesday’s CED Tech Venture Conference in Raleigh.
Durham-based Micell Technologies raises another $20 million
By Meghan Siegmund
Micell Technologies Inc., a Durham-based biotech company, raised an additional $20 million in an equity and debt offering, according to a filing with the Security and Exchange Commission on Tuesday.
It was not disclosed what the company intends to do with the money. The new investment comes from 51 investors, according to the filing.
In November 2016, Micell raised $25.7 million in a private stock offering. It also raised $6 million in April and another $10 million in June.
The company needs another $8 million to reach its goal of $70 million.
Micell is led by Arthur Benvenuto, who has served as the CEO since the company’s formation in 2006.
Prior to his current position, Benvenuto served as chairman for life sciences for RA Capital Group, an advisor to venture capital firms, as well as a board member of other biotech and medical device companies.
Micell Technologies is a medical device company dedicated to transforming products to enhance drug delivery and patient outcomes.
The company’s flagship product, MiStent SES, is a CE-marked drug-eluting stent that is currently available for sale in many different countries.
MiStent is currently used in the interventional cardiology market, but has the ability to be adaptable to a broad range of drugs and therapeutic agents.
Companies relying on a Reg D exemption do not have to register their offering of securities with the SEC, but they must file what’s known as a Form D electronically with the SEC after they first sell their securities.
Asheville-based French Broad Chocolates raises $500,000
By Addison Lalier
An Asheville-based chocolate company has raised $500,000 in an equity offering, according to a filing with the Securities and Exchange Commission.
French Broad Chocolates intends to raise $900,000, with $400,000 remaining to be sold, through 11 investors.
The company was founded in 2006 by Dan and Jael Rattigan. The chocolates were initially made in their home kitchen and were sold online and at local farmers markets.
In 2008, French Broad Chocolate Lounge opened in downtown Asheville. In 2012, as demand increased, the Rattigan’s opened French Broad Chocolate Factory and Tasting Room.
The company is focused on sustainability, environmentally friendly practices and being a bean-to-bar business. They are currently in the final stages of becoming a Certified B Corp, and are a three-star Certified Green Restaurant through the Green Restaurant Association.
Over the past 10 years, French Broad Chocolates has grown from a two-person business to a company that employs over 80 people in the Asheville community.
In August, the company announced it will be relocating to a 12,000-square-foot facility in the spring. The change will enable the chocolatiers to increase annual production from 18 tons to 50 tons.
Additionally, French Broad Chocolates is relocating its creamery, which will allow it to triple production.
In 2017, French Broad Chocolates won four International Chocolate Awards.
The company filed the form on Sept. 18 and did not disclose what it intended to do with the funds.
Companies relying on a Reg D exemption do not have to register their offering of securities with the SEC, but they must file what’s known as a Form D electronically with the SEC after they first sell their securities.
The filing can be found here.
Morrisville-based HAP Innovations raises $700,000 in private offering
By Emily Brice
HAP Innovations, LLC, a North Carolina-based company, sold $700,000 in a private stock and debt offering, according to a Securities and Exchange Commission filing.
The company filed the Form D on Sept. 18 and it did not disclose what it intended to do with the funds.
The money was raised from seven investors and included equity and debt. It is seeking to raise an additional $5.3 million.
HAP Innovations is a consumer health technology company that makes it easier for patients, family caregivers, pharmacists and other healthcare providers to provide expert care. The main product of the company is a ‘spencer.’
A spencer is a device that can confirm a correct prescription, dispense medication at the right time and record medication history in a secure virtual database. The spencer assist app connects patients, pharmacists, caregivers and other physicians to the data that is being recorded by the spencer.
Thomas Rhoads is the chief executive officer of HAP Innovations. He previously was chief executive officer of Parata Systems in Durham for 11 years. Before that, he was a project director in manufacturing for Cardinal Health Corp.
HAP Innovations was spun out of Parata Systems.
Companies relying on a Reg D exemption do not have to register their offering of securities with the SEC, but they must file what’s known as a Form D electronically with the SEC after they first sell their securities.
The form can be found here.
Black Mountain-based firm raises $3.5 million in venture capital fund
By Sissy Rodriguez
KdT Ventures, an early stage venture firm with a focus on the integration of technology and science, has raised $3.5 million in a venture capital fund, according to a filing with the Securities and Exchange Commission.
The money was raised from 22 investors, according to the filing. The firm is seeking to raise a total of $30 million for the fund.
Established in June, KdT Ventures was founded on the principle that advances in technology are allowing mankind to solve problems that were never before addressable. KdT’s overarching goal is to help entrepreneurs turn their own ideas and visions into successful companies through funding and hands-on company development.
The Black Mountain, North Carolina-based company’s main areas of investment include cloud and synthetic biology, computational medicine and digital diagnostics.
Cain McClary is the founder and Managing Partner of KdT Ventures. Over the past 10 years, McClary has been at the forefront of the intersection between technology and science/medicine. In addition to personal investments, including companies such as Firefly Bioworks, Concert Genetics, and PathAI, McClary has been an active advisor to both companies and institutional investors.
Prior to founding KdT, McClary was the lead pathologist, analytics and data science clinical thought leader, and staff physician for Grand Rounds, a San Francisco-based digital health company focused on objectively quantifying physician quality for large self-insured employers.
During his time at Grand Rounds, McClary developed the pathology program to support over 2 million lives, negotiated several high-impact academic and employer relationships, and helped to lead the training team for all onboarding physicians.
Companies relying on a Reg D exemption do not have to register their offering of securities with the SEC, but they must file what’s known as a Form D electronically with the SEC after they first sell their securities.
