Millions of Dollars Raised in One Week for Startup Companies

January 10, 2015 by  Filed under: Search 

For some Boston area tech companies, the third week in November was pretty busy. Some major funding deals went through that will lead to the realization of several interesting projects for techies and non-techies alike. One of the most notable monetary infusions was directed at Disruptor Beam, a company looking to create a “star Trek Timelines” game that takes advantage of the show’s popularity and hopefully allows it to produce other games centered on pop culture themes.

Dispatch, another local tech company, also walked away with a seed deal that will help it take traditional service businesses to the next level. Instead of offering the same services it has in the past, Dispatch will be able to update its system to help startup companies take better advantage of its services. Current customers will also be able to take advantage of some of the changes and improvements.

Another company, WiGo was handed over seed money in order to create a new app for college students. The “who is going out?” app helps students make plans with friends quickly and easily, listing which people are going out for the evening and where they are planning to be. There are also features that allow users to chat with one another or encourage a specific person to come out for the evening.

Some of the investors that stand out include GrandBanks Capital. In the past, people had assumed that because of its lack of activity, GrandBanks Capital was no longer on the radar for investment into local tech companies. However, its investment in two different companies this week, as well as another back in June, are clearly putting this investor back on the map.

While some tech companies didn’t mind spilling the beans on the investment monies that they received this week, as well as their overall funding figures, others were a little more hesitant to reveal too much. Several companies this week, including WiGo and Essess chose not to disclose the amount of money each received. 5nine Software shared very little about how much of an investment it received, as well as how much it currently has in total funding.

While the investors are providing some of the money needed to take these companies to the next level, there are additional benefits that come with the investments. Seed money is used to get a company off the ground, and tech companies have the ability to offer gain capital by offering their investors specific entitlements that come with their investments. The investment rounds are often called series. Each one guarantees the investor something different within the company.

In the case of WiGo, the company is getting more than just seed money from the co-founders of Tinder, Sean Ran and Justin Mateen. The company will also receive advice and assistance as it looks to launch its app on the world market.

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