The Week’s 10 Biggest Funding Rounds: TeraWatt Electrifies With Huge Round, Biotech Wins Big

This is a weekly feature that runs down the week’s top 10 funding rounds in the U.S. Check out last week’s biggest funding rounds here.

An electric vehicle charging startup may have raised the biggest round, but the real winners of the week were biotech and drug discovery companies. The list this week is dominated by biotech and health care startups as investors continue to see the value in new and innovative treatments.

1. TeraWatt Infrastructure, $1B, electric vehicle: A San Francisco-based charging startup tops the list this week with a huge Series A of more than $1 billion. Launched out of stealth in May 2021, TeraWatt Infrastructure has built out a network of charging stations for the operation of light- to heavy-duty fleets. The company acquires property in “strategically relevant” locations and helps customers operate EV fleets without the need to own and operate their own infrastructure. The new funding comes from funds managed by Vision Ridge Partners and existing investors Keyframe Capital and Cyrus Capital, and will be used for further development and expansion, including the buildout of a growing portfolio of charging centers. The round is the largest raised by a VC-backed startup in the electric vehicle segment this year, according to Crunchbase data. The company says it had previously raised a $100 million seed round.

2. Gotham Greens, $310M, agtech: Startups that solve some of the farming and food issues we are now facing due to drought, environment and changing habits have been quite popular with investors. New York-based Gotham Greens is the latest to raise big—securing a $310 million Series E led by the BMO Impact Fund and Ares Management Fund. The indoor farming startup sells leafy greens grown in hydroponics-equipped greenhouses. The company says using hydroponics in their greenhouses allows them to use 97% less land when compared to farming. Gotham Green’s goal is to have 13 locations across nine states by 2023. So far, the company is building new greenhouses in Texas, Colorado and Georgia, in addition to existing greenhouses in Chicago and Providence. Launched in 2009, the company has raised $435 million to date, per Crunchbase.

3. ACELYRIN, $300M, biopharma: ACELYRIN is the first biopharma/biotech company on our list this week, but it won’t be the last by any means. The Los Angeles-based startup raised a $300 million Series C led by Access Biotechnology. ACELYRIN has now raised $550 million in less than 12 months. The company is developing treatment for inflammatory diseases and is entering late-stage trials. Founded in 2020, the biotech startup has raised $558 million to date, per Crunchbase data.

4. Verkada, $205M, security: Although we often focus on cybersecurity, there is still a real need for security in the physical world. That is something technology can help with, too. San Mateo, California-based Verkada is doing just that and closed a large $205 million Series D led by Linse Capital that values the company at $3.2 billion. The company offers a plethora of products that include video security cameras, door-based access control, environmental sensors and more. Founded in 2016, Verkada says it has raised more than $360 million.

5. Atlas, $200M, human resources: Chicago-based Atlas raised a $200 million Series B funding led by San Francisco-based growth investor Sixth Street. Atlas helps companies build a presence in new countries by dealing with compliance and payroll as the employer of record. “Atlas is enabling companies to seize the opportunity to be competitive, flexible, and borderless” said Rick Hammell, its founder and CEO.

6. RayzeBio, $160M, biotech: Another biotech and another big round. San Diego-based RayzeBio locked up a $160 million Series D financing co-led by Viking Global Investors, Sofinnova Investments and Wellington Management. The company is developing targeted radiopharmaceuticals to use against tumors and said it has “several novel drug candidates for clinical evaluation in the near future.” RayzeBio says it has now raised $418 million since starting operations in August 2020.

7. Nimbus Therapeutics, $125M, biotech: Cambridge, Massachusetts-based clinical-stage medicine developer Nimbus Therapeutics closed a $125 million private financing, which included participation from new investors Bain Capital Life Sciences and SV Health Investors, among others. Founded in 2009, the company has raised $427 million, according to Crunchbase data.

8. Capstan Therapeutics, $102M, biotech: San Diego-based cell-engineering startup Capstan Therapeutics closed a $102 million Series A led by Pfizer Ventures. Founded last year, the firm has raised $165 million, according to the company.

9. Galvanize Therapeutics, $100M, biotech: San Carlos, California-based biomedical platform Galvanize Therapeutics raised a $100 million Series B financing led by Fidelity Management and Research Co. Founded just this year, the startup has now raised a total of $148.5 million in funding, according to Crunchbase data.

10. Forge Biologics, $90M, biotech: Columbus, Ohio-based gene therapy-focused biotech company Forge Biologics raised a $90 million Series C co-led by Drive Capital and Aisling Capital. Founded in 2020, the startup has raised $330 million, per the company.

Big global deals

The top 10 rounds announced this week all came from U.S.-based startups—a rarity. The largest deal outside the U.S. was:

• India-based Yulu, which offers shared electric two-wheelers to reduce traffic congestion, closed a Series B worth approximately $82 million.

Methodology

We tracked the largest rounds in the Crunchbase database that were raised by U.S.-based companies for the seven-day period of Sept. 10 to 16. Although most announced rounds are represented in the database, there could be a small time lag as some rounds are reported late in the week.

Illustration: Dom Guzman

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