StartVirginia: September 2023 Heard Around Virginia

McLean-based Affect Therapeutics, a substance addiction therapy startup, raised $16 million in a Series A funding round to expand its operations and further develop its mobile app. The company delivers therapy and treatments for specific substance use disorders through its app. The company plans to use much of the money it raised to expand into Oregon, Washington, Colorado, Illinois, North Carolina and Virginia, and it has filed applications to do business in Washington, D.C., and Maryland. It currently operates in Arizona, California, Nevada and Idaho. (DC Inno)

Arlington and Fairfax counties have established $1 million innovation funds. The Arlington Innovation Fund was created in July and will award grants ranging from $25,000 to $50,000 to between 13 and 26 startups based in the county. The Fairfax Founders Fund, also seeded with $1 million, launched in March and is in the process of choosing its first cohort or startups from a pool of 40 applicants; it will provide entrepreneurs $50,000 to scale up. Arlington’s fund comes from a carve-out in the county budget, Fairfax’s is from the county’s Economic Opportunity Reserve Fund. (DC Inno)

GoTab, an Arlington County-based hospitality commerce platform, closed on an $18 million Series A funding round led by Truist Ventures, the company announced Aug. 1. GoTab will use the money to develop its product suite, used in restaurants, stadiums and entertainment venues, including its stationary and handheld point-of-sale solutions as well as kitchen display and kiosk, mobile ordering and radio-frequency identification technology payment systems. Founded in 2016, the company processes more than $500 in gross merchandise annually and is in use in 39 states and Canada. (Company news release)

Qomplx, an analytics and cybersecurity firm founded by two military veterans, appears to have shuttered. Qomplx filed notice with the Virginia Employment Commission on July 20 that it would lay off 60 employees effective Aug 1. According to a July 20 email exchange with another company, Qomplx said it would case operations at the end of July but it was not clear why. Founded in 2015, the company raised $78.6 million in a Series A funding round in 2019; in 2021, a deal to go public was called off because of market conditions. At the time, Qomplx said it expected to reach $141 million revenue, up from $96 million in 2020. (Washington Business Journal)

Several groups across Virginia are vying for a U.S. Economic Development Administration grant worth up to $70 million to establish one of about 20 regional technology hubs around the country. The Richmond Technology Council (rvatech) applied for an AI and machine learning hub, while the Hampton Roads Executive Roundtable would spearhead a Delmarva regional autonomous systems tech hub. The Lynchburg Regional Business Alliance is leading a proposal focused on nuclear industrial technology, while the New River Valley Regional Commission is applying to create a NRV-Danville regional additive manufacturing hub. The bulk of the funding would go toward workforce and talent development. Applicants will be narrowed to 20 regions in the fall. (Richmond Times-Dispatch; Virginia Business; Cardinal News)

Richmond health care analytics startup Time Study is launching two new products that aim to help health systems improve their business operations. Time Study’s platform is used by more than 80 hospitals across the country. It pulls data on how physicians and health workers use their time while at work, allowing hospitals to improve efficiency and maximize revenue. The new products include a timestamp application and a comparative analytics product. The company has 20 employees and has raised $7 million in funding. CEO Kishau Rogers said she expects Time Study will seek more funding next year. (Richmond Inno)