Raleigh tech firm locks in $21 million raise as demand spikes

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A Triangle technology firm working to provide solutions for senior living and the disabled has announced fresh fundraising – giving it new capital during an unprecedented spike in demand for its services.

On Wednesday, Raleigh-based K4Connect announced a new $7.7 million raise led by Georgia-based Forte Ventures. The company says the new funding officially closes its Series B at $21 million.

The company develops a platform called K4Community that’s designed to provide engagement and wellness features for the residents and staff of senior-living communities. The company, led by CEO and founder Scott Moody, has experienced a windfall opportunity amid the shutdowns related to the pandemic.

In fact, Moody previously said the company had grown nearly 500 percent in just a matter of months earlier this year, due mostly to its product going from a “nice to have” to a “we have to have this.”

With its fresh funding from the Series B, the company said it plans to use the cash to “further accelerate the development and deployment of solutions that support today’s most vulnerable population during Covid-19 and beyond.”

“We are incredibly fortunate in our investor relationships in that they not only believe in our vision but equally value our mission” Moody said of the raise. “Forte Ventures is a prime example of that relationship and we’re proud to welcome them to the bench of our valued investors. With their support, and all of our investors, we’re continuing to accelerate to serve as many older adults through technology as possible.”

The latest raise brings the company’s total venture funding to date to $31 million. The company currently counts over 800 continuing care, independent living and assisted living communities across the country as clients.

Earlier this year, the company announced a deal with Amazon to distribute more than 8,000 Echo Dots – Amazon’s smart speaker – loaded with the company’s K4Community program designed for residents and staff of senior-living communities.

The company’s achievements in recent months is part of Forte’s interest in the company, according to a prepared statement.

“We are thrilled to lead this round of funding to support all that K4Connect is doing to serve the older adult community and the senior living industry,” said Louis Rajczi, partner at Forte Ventures. “This is a particularly exciting partnership for us as we are passionately behind K4Connect’s vision of improving the lives of the nation’s older adults through innovation.”

As part of the new investment, Rajczi will join K4’s board of directors. Additional investors listed in the round include Sierra Ventures, Intel Capital, AXA Venture Partners, the Ziegler Link Age Fund, Revolution’s Rise of the Rest, Topmark Partners and Traverse.

Original Article Source: Triangle Business Journal