The Built in Idaho Q4 Deal Flow Report is here!
Get the details on what happened last quarter. With $22.7 million in total capital flow, Idaho dealmakers closed out the year with some interesting trends.
On the Docket
Tech Services and Construction took center stage in Q4.
Strategies looking beyond COVID began to materialize.
Three companies raised significant capital through crowdfunding.
While Q3 deals favored Tech, Q4 deal flow brought some big numbers for tech-enabled Services. We saw some interesting moves at the end of 2020 that could position Idaho companies for success as a post-COVID economy emerges later this year. Speaking of COVID, did more people contribute to crowdfunding campaigns in Q4 due to consumers’ increased time on the internet? Looking back at the numbers, it appears so.
1. Tech Services and Construction were dominant spaces in Q4
Tech-enabled services brought in the most equity.
Crave, the food delivery service that everyone’s raving about, brought in an impressive $7.3 million from Capital Eleven and StageDotO. The company plans to use the investment to open more locations nationwide, including Salt Lake City, Dallas/Fort Worth, Mesa/Chandler, and Denver.
Gather, a company offering funeral home software, raised $4 million from Pelion Ventures, a Utah-based venture firm. With Pelion’s experience in the tech space, Gather plans to use the investment to grow their team and services.
Building and Construction had several major deals in Q4.
Construction and property management related deals were 21% of Q4’s total. Alturas Ventures acquired Hartley Dirtworks and Hartley Concrete Construction for a combined $5.25 million. These acquisitions were Alturas Ventures’ first through Alturas' new investment arm, led by Jeff Blickman. With the Treasure Valley’s continued residential construction boom, it’s no surprise that this sector saw a significant amount of deal flow. See the deals here.
2. Strategies looking beyond COVID start to materialize.
Two of Idaho’s mountain resorts were acquired.
Brundage Mountain, located in McCall, was acquired by Brundage Mountain Holdings in November. The new owners, who have been involved with the company for over a decade, plan to move forward with additional development including a village and new lodge.
South Fork Lodge, located in Swan Valley, was acquired by celebrity Jimmy Kimmel and angler Oliver White. The new owners plan to renovate the resort and focus on luxury fly fishing accommodations. The resorts’ plans to finish development and renovation may prove to be perfect timing with the end of the pandemic.
Food-centered consumer goods get ready to go national.
Two large food-centered deals showcased strategies to expand operations outside of Idaho. As previously mentioned, Crave plans to open four locations around the country using their latest investment. Crave’s beautifully-designed food delivery app is an obvious output of the COVID world, but will they continue to see growth once indoor eating normalizes? Food delivery is much more widely accepted these days, but consumers will have an itch to get back to socializing in restaurants. See the deals here.
Killer Creamery, a keto-friendly ice cream company, received a $1,500,000 investment and plans to use the funds on equipment to start producing ice cream sandwiches and to introduce the product nationwide. Grocers increased SKUs to keep up with demand in 2020, driving growth among gourmet and artisan products. Niche food products will need to come up with strategies to keep suppliers interested, and Killer Creamery’s innovative keto-friendly ice cream sandwiches may be the answer.
3. Startup Crowdfunding raised $1,143,500 in Q4.
3 of 5 crowdfunding deals happened in Q4 2020.
Diving back into the annual deal flow data, we see that 2020 had an uptick in crowdfunding deals compared to previous years. With three total crowdfunding deals in 2019, three in 2018, and two in 2017, it seems that consumers are warming up to the idea. Facebook saw a 27% increase in average daily traffic, which could be one reason that crowdfunding saw a big boost. With more eyes on their campaigns, startups were able to raise more funds from everyday investors. Check out our library of annual Deal Flow Reports here.
Solar Roadways secured $1.1 million from their crowdfunding campaign, using Facebook to drive traffic to their Start Engine page. Their first crowdfunding campaign in 2014 raised $2.2 million, which they used to develop products. The company seems to be gaining momentum after securing multiple US Department of Transportation and US Department of Defense contracts. See the deal here.
Did we miss something?
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