A List of Kansas City Startups That Have Raised Capital

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.  

Think Big Accelerator Spotlight: Connor Sweeney of Weejay

Connor Sweeney, founder of Weejay.

A few weeks ago, Weejay, a startup company founded by Connor Sweeney, was accepted into the Think Big Accelerator program.  The startup, which originally was planned to be a mobile jukebox, has pivoted into a marketing platform with a music focus.  And now that the startup, and the entrepreneur behind it, has gone through a few weeks of the Think Big Accelerator program, things are starting to look bright for the Kansas City-based Weejay.

But it wasn't always that way.  After coming up with the idea, researching it and watching parts of his vision come to life, Connor decided to walk away from the Weejay project in June of 2012 when he found multiple competitors who were already years ahead of him in the space.

"As an entrepreneur, when you have an idea and then discover that someone else does the exact same thing already, it's a deflating moment," says Connor. "But then Blake [Miller] from Think Big gave me a call and encouraged me to move forward.  Think Big gave me the confidence to continue with Weejay.  They reminded me to think of Coke and Pepsi.  There's always room for two in any industry."

But after creating Weejay's design, crafting up a layout and starting the Think Big Accelerator class, Connor still didn't feel 100% about his idea and where it was headed.  So, within the accelerator program, he learned the power of the pivot.

"I had an ah-ha moment a few weeks into the accelerator," says Connor.  "I realized that instead of a mobile jukebox, Weejay could become a marketing platform with a music focus.  It's how other great apps like Pandora and Front Flip have become so successful.  I am now creating a unique music discovery platform that is even better than my original idea."

According to Connor, Weejay is currently in "baby-step mode".  The startup has set out to prove its new model and has begun testing for engagement from establishments around Kansas City (i.e. restaurants).  In addition, the startup is narrowing down much of its gaming components, design and MVP.  But there's no denying it--Connor is anxious to tie up all the loose ends and begin the funding phase.

"I am so grateful for the structure, guidance, education and confidence that the Think Big Accelerator program has given me," says Connor.  "Plus, this is a lot of fun!  I am very excited to move forward through the next 30, 60, 90 days."

Read another Accelerator Spotlight blog post: Dwayne Brock of Kahootz

Follow me! @AllisonThinkBig