We are pleased to present the Q3 2021 Idaho Deal Flow Report. Idaho continues to experience growth and exciting economic moments despite the continued impact of COVID-19.

The third quarter experienced 39 deals and $736 million of capital flow, which falls slightly below the second quarter. There was one IPO this quarter, 17 M&A deals and 21 private placements.

Initial Public Offering

One of the most exciting developments in Q3 of this year was the IPO of Clearwater Analytics in September. The company raised $540 million in its initial public offering which valued the company at just over $4 billion.

Clearwater joins a relatively small list of publicly traded companies based in Idaho (24 according to Crunchbase). This puts the company alongside storied Idaho businesses like Boise Cascade, Micron, and Albertsons among others.

M&A Deals

There were a total of 17 Mergers & Acquisitions with only one disclosing acquisition price.

The largest, and only disclosed deal in Q3 was Federal Signal’s acquisition of Ground Force Worldwide in early September. Ground Force Worldwide is a dedicated Original Equipment Manufacturer for the mining industry based in Post Falls. The company offers over 30 product lines in 60 countries around the world.

Another major acquisition was the sale of House of Design to Thomas H. Lee Partners, a leading private equity firm, on September 13, for an undisclosed sum. House of Design provides automated solutions to manufacturers in a wide range of industries. The company is a leading design and engineering firm of robotic systems that increase efficiencies while reducing labor input.

A deal of particular interest was the acquisition of LunchBox Wax by WellBiz Brands. LunchBox Wax, founded by Debi Lane in Boise in 2010, is a franchise waxing salon. It started with just one location in Boise and now has almost 50 around the country. These three transactions represent diverse companies in many different industries founded and grown in Idaho that experience large exits from nationally recognized firms.

Private Placement Deals

There were 21 private placements in Q3 totaling $151 million. Technology and software companies were once again a major beneficiary of investment as were several manufacturing companies. Additionally, there were four Series A rounds totaling almost $46 million in Q3. Two were Idaho based companies while two were companies with a major presence or second HQ located in Idaho.

Continuous Composites and Tovuti, Idaho based companies both experienced Series A rounds in July of $17 and $8 million, respectively. Continuous Composites, a cutting-edge 3D composites manufacturer is based in Coeur d’Alene and was founded in July of 2015. The round was led by B. Riley Venture Capital and will help the company keep up with demand and scale with their customers.

Tovuti is an industry leader in SaaS learning management systems that helps companies scale by providing platforms for learning and training programs. The $8 million round was led by Blueprint Equity and ScOp Venture Capital and aims to support continued growth and development.

These two Series A rounds further illustrate the continued success of Idaho based startups. The participation of capital providers outside of Idaho gives confidence to other Idaho founders that Idaho is no longer a “fly over state”. Rather, it is one of the best places to live and one of the best places to do business.

If you know of additional details, please don’t hesitate to email Lucas Henken at lucas@alturas.com.

Thank you for all your support and enjoy our Q3 2021 Deal Flow Report!