Startup

This Week’s Top Seed Companies to Watch — Checkly, Finom, Wise, LittleData

A weekly newsletter highlighting the top seed companies that have announced or raised a seed round within the past week.

There are over 1,000 companies that raise seed or angel financing each quarter in the United States. This weekly post provides a glimpse into how we at e.ventures think about tracking new investment opportunities.

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Happy Monday!

Scandinavian video conferencing service Pexip is looking to raise $200M in an IPO. The company has taken on around $30M in venture funding to date with its first venture round being led by TD Venn back in January 2013.

Leading construction management software Procore pulls back from its IPO plans and has decided to raise $150M at a $5B valuation. The company has now taken on almost $650M in venture funding with its first public venture round being led by Greater Pacific Capital back in January 2007.

Here are my top seed investments from the last week:

Checkly

EVA Growth Index:

Product:
Central dashboard to monitor the performance of API endpoints and vital site transactions

Investors:
Accel + many high profile DevOps entrepreneurs

Total Raised:
$2.25M

Business Model:
Monthly SaaS subscription starting at $7 for individual developers and ranging up to $499 for enterprises

Comparables:
API Tracker, Swagger.io, Runscope

X-Factors:
1. Pervasive problem that is only growing

2. Our internal engineers are constantly complaining about how broken, badly managed many of their external APIs are, Checkly looks to solve this

3. The in-app browser checking is a killer feature

Thoughts:
I have always loved this problem and spent a decent amount of time on Runscope many years ago. Checkly appears to have built an elegant solution here.

Wise

EVA Growth Index:

Product:
Embedded banking as a service

Investors:
Base10 Partners, Backend Capital, The Fund, Two Culture Capital, Abstract Ventures, Techstars

Total Raised:
$5.7M

Business Model:
Transaction fee, financial vehicle brokering, and potentially the reinvesting of deposits

Comparables:
Reminds me of Balanced Payments from 2013/2014, although Balanced was mostly focused on marketplaces

X-Factors:
1. Gaining distribution through third-party developers, rather than going out to acquire businesses themselves

2. The President, Raghav Lal, spent many years at Visa, and prior to that was the GM of Small Business for American Express

Thoughts:
Massive market opportunity with an experienced team. Two of the three co-founders have worked together in the past. I would like to have taken a look at this one.

Littledata

EVA Growth Index:

Product:
Centralized analytics platform to track e-commerce customer behavior primarily within the Shopify ecosystem

Investors:
Henley Business Angels

Total Raised:
$200k

Business Model:
SaaS subscription ranging from $59 to $999 per month

Comparables:
N/A

X-Factors:
1. Merge data sources from Google Analytics, Shopify, ReCharge and Facebook Ads

2. Providing small merchants big company visibility

Thoughts:
Full funnel visibility has always been difficult within Shopify. Littledata solves that problem and also layers on consulting services for when people hit a roadblock. Large growing market opportunity.

Finom

EVA Growth Index:
No external sources indicating growth

Product:
End to end software solution for invoicing

Investors:
Target Global

Total Raised:
$7M

Business Model:
Freemium SaaS model plus margin on payments processing

Comparables:
InvoiceNinja, Invoice2Go

X-Factors:
1. Lack of sophisticated horizontal invoicing software in the market

2. Inherently viral as other businesses see the Finom brand when they receive a Finom invoice, similar to Calendly and Zoom

Thoughts:
Exceptional looking product. This is a category where it is all about the execution. Although there is a fair amount of competition, with a beautiful product that truly does eliminate mistakes something like this can really sore.

Have you recently raised a Seed round? Do you think your start-up could be of interest to e.ventures? Provide us your information here to be potentially included next week.

See last weeks Seeds to Track >> here

What is the EVA Growth Index?
The EVA Growth index is a composite of third-party data sources around a company’s website traffic. The vertical green lines in the charts represent a point in time where the company raised outside capital
.