{"id":5382,"date":"2020-01-02T12:02:45","date_gmt":"2020-01-02T10:02:45","guid":{"rendered":"https:\/\/www.dazzlepop.net\/site\/?p=5382"},"modified":"2020-03-17T14:03:31","modified_gmt":"2020-03-17T12:03:31","slug":"in-the-shadow-of-amazon-and-microsoft-seattle-startups-are-having-a-moment","status":"publish","type":"post","link":"https:\/\/www.dazzlepop.net\/site\/in-the-shadow-of-amazon-and-microsoft-seattle-startups-are-having-a-moment\/","title":{"rendered":"In the shadow of Amazon and Microsoft, Seattle startups are having a moment"},"content":{"rendered":"<div style=\"text-align:center\"><img decoding=\"async\" src=\";https:\/\/techcrunch.com\/wp-content\/uploads\/2019\/12\/GettyImages-1169387119.jpg?w=1390&amp;crop=1\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"In the shadow of Amazon and Microsoft, Seattle startups are having a moment\" title=\"In the shadow of Amazon and Microsoft, Seattle startups are having a moment\" \/><\/div>\n<p>In the shadow of Amazon and Microsoft, Seattle startups are having a moment, Venture capital investment exploded across a number of geographies in 2019 despite the constant threat of an economic downturn.<\/p>\n\n\n\n<p>San Francisco, of course, remains the startup epicenter of the world, shutting out all other geographies when it comes to capital invested. Still, other regions continue to grow, raking in more capital this year than ever.<\/p>\n\n\n\n<p>In Utah,<a href=\"https:\/\/techcrunch.com\/2019\/12\/27\/after-ipos-and-acquisitions-a-look-at-utahs-biggest-venture-rounds-of-2019\/\">&nbsp;a new hotbed for startups<\/a>, companies like Weave, Divvy and MX Technology raised a collective $370 million from private market investors.<\/p>\n\n\n\n<p><a href=\"https:\/\/techcrunch.com\/2019\/12\/19\/despite-winters-chill-the-northeasts-tech-ecosystem-is-white-hot\/\">In the Northeast<\/a>, New York City experienced record-breaking deal volume with median deal sizes climbing steadily. Boston is closing out the decade with at least&nbsp;<a href=\"https:\/\/www.crunchbase.com\/search\/funding_rounds\/e79596a13c957fb723b3dbb5b0ae2298\">10 deals<\/a>&nbsp;larger than $100 million announced this year alone.<\/p>\n\n\n\n<p>And in the lovely Pacific Northwest, home to tech heavyweights <a href=\"http:\/\/www.Amazon.com\">Amazon<\/a> and <a href=\"http:\/\/www.Microsoft.com\">Microsoft<\/a>, Seattle is experiencing an uptick in VC interest in what could be a sign the town is finally reaching its full potential.<\/p>\n\n\n\n<p>Seattle startups raised a total of $3.5 billion in VC funding across roughly 375 deals this year, according to data collected by PitchBook. That\u2019s up from $3 billion in 2018 across 346 deals and a meager $1.7 billion in 2017 across 348 deals. Much of Seattle\u2019s recent growth can be attributed to a few fast-growing businesses.<\/p>\n\n\n\n<p><a rel=\"noreferrer noopener\" href=\"https:\/\/crunchbase.com\/organization\/convoy-3\" target=\"_blank\">Convoy,&nbsp;<\/a>&nbsp;the digital freight network that connects truckers with shippers,<a href=\"https:\/\/techcrunch.com\/2019\/11\/13\/convoy-raises-400-million-to-expand-its-on-demand-trucking-platform\/\">&nbsp;closed a $400 million round last month<\/a>&nbsp;bringing its valuation to $2.75 billion. The deal was remarkable for a number of reasons.<\/p>\n\n\n\n<p>Firstly, it was the largest venture round for a Seattle-based company in a decade, PitchBook&nbsp;<a href=\"https:\/\/pitchbook.com\/news\/articles\/seattle-vc-funding-record-microsoft-amazon\">claims<\/a>.<\/p>\n\n\n\n<p>And it pushed Convoy to the top of the list of the most valuable companies in the city, surpassing OfferUp, which raised a sizable&nbsp;<a href=\"https:\/\/www.geekwire.com\/2018\/offerup-raising-ton-cash-battles-craigslist-ebay-facebook-others\/\">Series D<\/a>&nbsp;in 2018 at a $1.4 billion valuation.<\/p>\n\n\n\n<p>Convoy has managed to attract a slew of high-profile investors, including&nbsp;<a href=\"https:\/\/crunchbase.com\/organization\/amazon\" target=\"_blank\" rel=\"noreferrer noopener\">Amazon\u2019s&nbsp;<strong><\/strong><\/a>&nbsp;<a href=\"https:\/\/crunchbase.com\/person\/jeff-bezos\" target=\"_blank\" rel=\"noreferrer noopener\">Jeff Bezos,&nbsp;<\/a>Salesforce CEO Marc Benioff and even U2\u2019s Bono and the Edge. Since it was founded in 2015, the business has raised a total of more than $668 million.<\/p>\n\n\n\n<p><a rel=\"noreferrer noopener\" href=\"https:\/\/crunchbase.com\/organization\/remitly\" target=\"_blank\">Remitly,&nbsp;<\/a>&nbsp;another Seattle-headquartered business, has helped bolster Seattle\u2019s startup ecosystem. The fintech company focused on international money transfer raised a&nbsp;<a href=\"https:\/\/techcrunch.com\/2019\/07\/09\/remitly-raises-220m-to-expand-from-money-transfers-to-financial-services-now-at-900m-valuation\/\">$135 million<\/a>&nbsp;Series E led by&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/crunchbase.com\/organization\/generation-investment-management\" target=\"_blank\">Generation Investment Management,&nbsp;<\/a>and $85 million in debt from <a href=\"https:\/\/www.dazzlepop.net\/site\/category\/technology\/\">Barclays<\/a>,&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/crunchbase.com\/organization\/bridge-bank\" target=\"_blank\">Bridge Bank,&nbsp;<\/a>Goldman Sachs and Silicon Valley Bank earlier this year.<\/p>\n\n\n\n<p>Owl Rock Capital,&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/crunchbase.com\/organization\/princeville-global\" target=\"_blank\">Princeville Global,&nbsp;<\/a>&nbsp;Prudential Financial, Schroder &amp; Co Bank AG and Top Tier Capital Partners, and previous investors DN Capital, Naspers\u2019&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/crunchbase.com\/organization\/payu-t-rkiye\" target=\"_blank\">PayU&nbsp;<\/a>and Stripes Group also participated in the equity round, which valued Remitly at nearly $1 billion.<\/p>\n\n\n\n<p>Up-and-coming startups, including co-working space provider&nbsp;<a href=\"https:\/\/techcrunch.com\/2018\/12\/11\/with-15m-the-riveter-plans-to-open-100-new-female-focused-co-working-spaces\/\">The Riveter,&nbsp;<\/a>real estate business&nbsp;<a href=\"https:\/\/techcrunch.com\/2019\/10\/31\/modus\/\">Modus<\/a>&nbsp;and same-day delivery service&nbsp;<a href=\"https:\/\/dolly.com\/\">Dolly<\/a>, have recently attracted investment too.<\/p>\n\n\n\n<p>A number of other factors have contributed to Seattle\u2019s long-awaited rise in venture activity. Top-performing companies like&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/crunchbase.com\/organization\/stripe\" target=\"_blank\">Stripe,&nbsp;<\/a>&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/crunchbase.com\/organization\/airbnb\" target=\"_blank\">Airbnb&nbsp;<\/a>&nbsp;and Dropbox have established engineering offices in Seattle, as has <a href=\"https:\/\/www.dazzlepop.net\/site\/category\/technology\/\">Uber<\/a>, <a href=\"http:\/\/www.Twitter.com\">Twitter<\/a>, <a href=\"http:\/\/www.Facebook.com\">Facebook<\/a>, <a href=\"https:\/\/www.dazzlepop.net\/site\/category\/technology\/\">Disney<\/a> and many others. This, of course, has attracted copious engineers, a key ingredient to building a successful tech hub. Plus, the pipeline of engineers provided by the nearby University of Washington (shout-out to my alma mater) means there\u2019s no shortage of brainiacs.<\/p>\n\n\n\n<p>There\u2019s long been plenty of smart people in Seattle, mostly working at&nbsp;<a href=\"https:\/\/crunchbase.com\/organization\/microsoft\" target=\"_blank\" rel=\"noreferrer noopener\">Microsoft&nbsp;<strong><\/strong><\/a>&nbsp;and Amazon, however. The issue has been a shortage of entrepreneurs, or those willing to exit a well-paying gig in favor of a risky venture. Fortunately for Seattle venture capitalists, new efforts have been made to entice corporate workers to the startup universe. Pioneer Square Labs, which I&nbsp;<a href=\"https:\/\/techcrunch.com\/2019\/03\/06\/pioneer-square-labs-is-invigorating-seattles-startup-ecosystem\/\">profiled<\/a>&nbsp;earlier this year, is a prime example of this movement. On a mission to champion Seattle\u2019s unique entrepreneurial DNA, Pioneer Square Labs cropped up in 2015 to create, launch and fund technology companies headquartered in the Pacific Northwest.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/techcrunch.com\/wp-content\/uploads\/2019\/12\/boundless-147a35591.jpg\" alt=\"In the shadow of Amazon and Microsoft, Seattle startups are having a moment\" class=\"wp-image-1928080\" \/><figcaption>In the shadow of Amazon and Microsoft, Seattle startups are having a moment<\/figcaption><\/figure>\n\n\n\n<p>Boundless CEO Xiao Wang at TechCrunch Disrupt 2017<\/p>\n\n\n\n<p>Operating under the startup studio model, PSL\u2019s team of former founders and venture capitalists, including Rover and\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/crunchbase.com\/organization\/thatsmighty\" target=\"_blank\">Mighty\u00a0<\/a>\u00a0AI founder Greg Gottesman, collaborate to craft and incubate startup ideas, then recruit a founding CEO from their network of entrepreneurs to lead the business.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the shadow of Amazon and Microsoft, Seattle startups are having a moment, Venture capital investment exploded across a number of geographies in 2019 despite the constant threat of an economic downturn. San Francisco, of course, remains the startup epicenter of the world, shutting out all other geographies when it comes to capital invested. Still, [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":5385,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_vp_format_video_url":"","_vp_image_focal_point":[],"footnotes":""},"categories":[29],"tags":[94,153,124,5,127,342,11,81,126],"class_list":["post-5382","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-startup","tag-amazon","tag-disney","tag-dropbox","tag-facebook","tag-microsoft","tag-seattle","tag-startup","tag-twitter","tag-uber"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Dazzlepop | In the shadow of Amazon and Microsoft, Seattle startups are having a moment<\/title>\n<meta name=\"description\" content=\"In the shadow of Amazon and Microsoft, Seattle startups are having a moment Venture capital investment exploded across a number\" \/>\n<meta name=\"robots\" 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