Of the hundreds of startups that have launched in Kansas
City in the past few years, very few of them have received funding. Is it because there is a lack of
capital in Kansas City? Is it
because angels and VCs simply aren’t funding at the rate that they used
to? Or is it because the startups
are not living up to funder expectations?
We can only speculate. But
for those innovative and smart enough to raise capital here in the Midwest, we
applaud you.
Which brings us to a list of startup companies that have
successfully raised capital here in Kansas City:
1. EyeVerify
EyeVerify enables mobile users to authorize transactions and
access information in a manner that is secure, scalable and convenient through
eye vein biometrics. EyeVerify
raised $1.4 million in the spring of 2012 from Think Big Ventures, The Nebraska
Angels, Mid-America Angels and various individual investors. Later in the spring of 2013, EyeVerify
closed a $2.3
million Series A round. The
funds have been used to accelerate the startup’s deployments with customers,
add features for the financial sector and grow the marketing sales team.
2. Leap2
Leap2 is a search platform that
delivers web social, news, images and local results with one single search. Leap2 closed a $280,000 seed round of
funding in 2012 and raised $80,000 from friends and family. Later in 2012, Leap2 brought in another
$200,000 from previous investors as well as Thad Langford (founder of Zave
Networks), Aaron McKee (Sprint) and an un-named partner at OpenAir Equity
Partners. In April of 2013, Leap2
announced that it had raised $1.6 million in new
funding in order to release new versions of its iOS and Android app. Leap2’s newest round of funding has
been led by Dundee Venture Capital with participation from OpenAir Equity,
Linseed Capital and Wichita Technology Corporation.
3. PlanetReuse/InvenQuery
PlanetReuse is a consulting and brokering company focused on
matching reclaimed building material with designers, builders and owners across
the globe. In addition to its online
marketplace platform, PlanetReuse also stood up InvenQuery, a startup that
provides technology to help retailers of unique merchandise handle inventory,
point-of-sale and ecommerce.
In September of 2012, PlanetReuse received a $250,000 grant from Chase and LivingSocial for the Mission: Small Business program. The company used these funds to build awareness of the reuse industry and to promote PlanetReuse Marketplace. Additionally, in November of 2012, a $650,000 Series A funding raise from Dundee Venture Capital helped InvenQuery enhance its technology and customer outreach. Earlier that year, the startup received angel funding of $450,000, bringing its total capital raised to $1.1 million.
4. Front Flip
Front Flip helps businesses create profitable relationships
with customers through experiences, instant promotions, rich customer analytics
and targeted mobile campaigns. In
January of 2012, Front Flip received $3.95 million in Series A funding. The startup then received another $3.75
million in Series B funding in January of 2013. Front Flip’s Series B funding was led by Jon Darbyshire,
executive chairman of the Archer Foundation and also included Peter Brown (AMC
Entertainment Inc.), Gary Fish (FishNet Security), Lance Melber
(eSmartloan.com) and The Brandmeyer family (Enturia). In addition, Front Flip received $550,000 in partial close
funding in October of 2012. To
date, Front Flip has received $8.25 million in funding.
5. Zaarly
Zaarly, one Kansas City’s more well-known startups, is an
online platform and app that connects buyers and shoppers with local storefront
owners. In March of 2011, Zaarly
received $1 million in seed funding from many notable investors including
Ashton Kutcher, Ron Conway, Paul Buchheit and Lightback and others. Zaarly raised another $14.2
million in Series A funding in October of 2011 from Kleiner Perkins and
Sands Capital Ventures, among others.
Zaarly has utilized this capital to invest in its operations and
technical development as well as hire employees for connecting buyers and
sellers in each specific market.
6. Truckily
Truckily is a marketing and location software for food
trucks. In June of 2013, Truckily
received $120,000
in seed funding from Gravity Ventures (Fayetteville, Arkansas) and Kea
Ventures (Branson, Missouri). The
rest of Truckily’s capital will be rasied through friends and family. Truckily founders plan to use the seed
funding to open the platform to other areas and build an Android version of the
app.
7. Trellie
Trellie is one of the few Kansas City companies that was
successfully funded by a Kickstarter
campaign. The startup posted a
video and photos of its product (a fashion accessory that notifies a user of
incoming and missed calls through a flashing LED light attached to a purse) on
Kickstarter hoping to raise $30,000.
The campaign drew in 515 backers who pledged $33,168.
