🧠 They are just handing out $35 million left and right

Happy Thursday! This is Masterminds Tampa Bay. We're the Iron Man of Tampa Bay business newsletters; innovative and dynamic, driving success with a proven track record.

Here’s what we have for you today:

• What the money situation is starting to look like

• What city just got a whole new workspace

• Which Tampa based company just raised $35 million

• Which Florida investor helped raise $35 million

Capital Crunch: Tampa Bay's Startups Face Funding Challenges

In a trend mirrored across the United States, venture capital investment in Tampa Bay is experiencing a significant downturn. The region saw a staggering 37% decrease in total capital invested during the second quarter of 2023, compared to the previous quarter. Even more striking, this marks a jaw-dropping 79% decline from the peak recorded in the first quarter of 2022.

The repercussions of this decline extend beyond mere numbers. The availability of capital in Tampa Bay has now reached its lowest point since 2010, potentially impeding the growth of innovation hubs and placing limitations on investment activity.

A combination of factors contributes to this downward trend. Heightened attention on existing portfolio companies, longer deal closure times, and startups conserving capital all play a role in the overall decrease in investment activity.

Let's take a closer look at the figures. In Q2 of 2023, total capital invested in Tampa Bay plummeted from $90.5 million to $57.4 million, representing a significant 37% drop. Moreover, the number of reported deals decreased from 17 at the beginning of the year to just 16 in the last quarter. This decline is a stark contrast to the 26 deals recorded in Q4 of 2022.

While there were some signs of recovery in June, with locally invested capital rising to $8.65 million, it remains a far cry from the $45 million reported in April. These fluctuations indicate the challenging landscape that business owners and entrepreneurs currently face in securing vital venture capital.

On a broader scale, venture capital investors across the United States are sitting on approximately $300 billion in unallocated capital, double the amount reported in 2019. However, the impact of this surplus remains elusive, as VC capital invested in Florida last quarter was a staggering 200% lower than the previous year and a substantial 435% lower than its peak in Q1 of 2022.

Another concerning aspect of this downturn is the exit values for VC investors, which hit a decade low in the last quarter. Acquisitions accounted for approximately 60% of the exit value generated so far this year.

As millennial business owners and entrepreneurs, it's crucial to navigate these challenging times strategically. Stay tuned for more insights and advice on how to thrive in an ever-evolving investment landscape.

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SpaceLab Collaborative Workspace Launches in St. Petersburg!

SpaceLab, a successful collaborative workspace concept from Detroit, is set to make its mark in our vibrant city.

The visionary duo behind SpaceLab, the Burtons, have signed a lease for a 5,900-square-foot ground floor space in the City Center office building. Their goal? To create a dynamic co-working environment that unites professionals in the construction industry, fostering collaboration and cultivating valuable business relationships.

Designed to cater to the needs of architects, real estate developers, and contractors, SpaceLab aims to be a hub of innovation and creativity. The Burtons have even consulted with the St. Pete Area Economic Development Corp. to understand the demand for more co-working spaces in the area, ensuring they meet the needs of our local business community.

The Burtons are committed to empowering entrepreneurs through financial literacy classes, equipping them with the tools to thrive. They also plan to actively engage with the St. Petersburg Area Chamber of Commerce and contribute to our city's vibrant arts and culture community.

PainTEQ Secures $35 Million Investment to Propel Medical Device Innovation

Tampa-based medical device creator PainTEQ has just raised a significant $35 million in capital infusion from New York-based equity group MVolution Partners (MVP).

Renowned for providing non-dilutive growth financing and investing in companies with remarkable intellectual property assets, MVP recognized the immense potential of PainTEQ's primary patented technology, LinQ. This SI joint stabilization system revolutionizes treatment options by eliminating the need for surgical drilling, delivering promising outcomes for patients.

The infusion of funds will serve as a catalyst for PainTEQ's ambitious growth trajectory. It will primarily fuel the commercialization efforts of the LinQ technology, ensuring its availability to healthcare professionals and patients in need. Additionally, the funding will support the team's ongoing research and development endeavors, enabling further innovation and advancements in the medical device field.

The company's remarkable achievements haven't gone unnoticed. PainTEQ was recently honored by Inc.'s prestigious 5000 list, recognizing it as one of the fastest-growing privately held companies in America. This accolade is a testament to PainTEQ's commitment to excellence and their significant impact on the medical device industry.

Headquartered in Tampa's vibrant Westshore district, PainTEQ continues to solidify its presence as a key player in the medical device sector. With a distribution center in North Tampa, the company is strategically positioned to deliver its groundbreaking technology to a wide range of healthcare providers.

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Betr Raises $35 Million in Funding Round, Led by Florida Funders

Tampa-based venture capital firm Florida Funders has just made a significant investment in the innovative micro-betting sports platform, Betr.

Founded by Jake Paul and Joey Levy, Betr is making waves in the world of sports betting and captivating casual sports fans with its real-time event betting experience.

In a recent financing round, Betr secured a remarkable $35 million in funding, catapulting the company's valuation to over $300 million. This infusion of capital will fuel Betr's expansion plans and pave the way for exciting developments in the realm of micro-betting.

The investment was co-led by renowned entrepreneur Roger Ehrenberg and Fuel Venture Capital, highlighting the immense potential and promise Betr holds. Notably, major existing investors such as FinSight Ventures and Aliya Capital Partners also participated in the funding round, reinforcing their confidence in Betr's growth trajectory.

Betr's user-friendly platform enables sports enthusiasts to engage in real-time betting on specific events during games, providing an immersive and interactive experience. The company's licensing and operations are already established in Ohio and Massachusetts, with imminent plans to expand to Virginia and other states. Additionally, Betr holds market access in Indiana, setting the stage for further growth and market penetration.

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Word of mouth.

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