Market Square Ventures makes handful of new investments, all in East TN
“We have several more start-ups in the pipeline,” Brandon Bruce said. “We’re continuing our trend of investing in great Tennessee founders.”
A year into operations for Knoxville’s venture capital firm, Market Square Ventures (MSV), more local founders are flocking toward the opportunity to raise money in East Tennessee before extending their search nationwide.
Brandon Bruce and John Bruck co-founded the firm, which welcomed three more general partners: Marty Brown, the President and Chief Executive Officer (CEO) of PYA, the power behind teknovation.biz; Harry Boston, the Founder of Boston Government Services; and Rosa Mar, a retired executive with Levi Strauss & Co.
Since the firm’s inception in early 2024, the five General Partners – alongside about 40 limited partners – have invested in eleven Tennessee-based companies, six in Knoxville.
We sat down with Bruce to understand how Market Square Ventures has profoundly impacted the outlook of Knoxville’s innovation and entrepreneurial ecosystem. And, also to get an update on the trajectory of the venture capital firm’s portfolio companies.
Update on VetVerifi
Perhaps the most exciting news is that VetVerifi, MSV’s first portfolio investment, announced the closure of its seed round at $2.8 million. Las Olas Venture Capital (LOVC) led the round, which included participation from Roo Capital and Market Square Ventures.
VetVerifi’s cutting-edge platform automates and secures pet vaccination record verification to seamlessly integrate with veterinary providers and pet service platforms. It makes the complicated compliance process for grooming, boarding, and pet daycare much simpler.
In a press release, David Servodidio, the CEO of VetVerifi, said, “This milestone is a testament to the trust our early customers and partners have placed in our vision and our talented team. With the backing of such incredible investors, we are well-positioned to expand our services and solidify our role as a critical partner and connector across the pet care ecosystem.”
Bruce chimed in with MSV’s excitement for Servodidio and VetVerifi, “We’re thrilled to back Dave and his team. They’re building a great company. VetVerifi is saving all of us from relying on fax machines for vaccination records.”
Bruce originally connected with Servodidio after his VetVerifi pitch at the 2023 LaunchTN “3686” Conference in Nashville. Bruce said it was “one of the best pitches” he had ever heard.
Read more about VetVerifi in teknovation.biz.
New investment into Station
Bruce shared that Market Square Venture’s latest investment was into a company called “Station,” located in Chattanooga. The start-up is a part of Brickyard’s second fund, and it aims to help monetize podcasts.
The company officially launched in late 2024 and has already amassed users on its platform. It empowers creators and fans to build vibrant, engaged communities without paywalls. Specifically, it allows the creator to see exactly who their audience is so they can collect better data, cater to their unique audience, and more effectively attract advertisers.
“It essentially unlocks first-party data for podcasters, which has previously been protected and not shared by major distributors like Apple Podcasts and Spotify,” Bruce said. “We jumped at the opportunity to invest.”
MSV got connected with Cam Pritchard, the Founder and CEO of Station through Cam Doody, the Founder and General Partner of Chattanooga’s Brickyard.
New Investment into Shift Thermal
Shift Thermal, formerly known as Active Energy Systems, is an Oak Ridge-based start-up. Co-founded by Mitch Ishmael and Levon Atoyan, the company has made significant strides since its inception. In early 2023, Shift Thermal graduated from the University of Tennessee Research Park’s Spark Innovation Center, and the Oak Ridge National Laboratory’s “Innovation Crossroads” program, and relocated to a larger commercial space in Oak Ridge.
The company’s flagship technology, the Icephobic Heat Exchange (IHEX) Module, addresses challenges in ice thermal energy storage systems by preventing ice from adhering to cold surfaces. This innovation allows for efficient energy storage with reduced cooling costs and minimal strain on existing cooling infrastructures.
New Investment into Clockout
Clockout is a financial service that enables banks and credit unions to offer earned wage access (EWA) through their digital banking apps. This service allows users to access a portion of their earned wages before payday, helping them manage unexpected expenses. The company was founded in 2021 by Juan Jurado-Blanco, who serves as the Chief Executive Officer (CEO) and Anthony Tardugno, who serves as the Chief Operating Officer (COO).
Clockout integrates seamlessly with banking systems, offering a fast, secure, and customizable solution that drives customer loyalty, attracts new deposits, and generates revenue for financial institutions.
Though originally based in Miami, Florida, Clockout is also a current portfolio company of the Brickyard in Chattanooga.
Looking Ahead
“We have several more start-ups in the pipeline,” Bruce said. “We’re continuing our trend of investing in great Tennessee founders.”
The fund is going to close to new investors around March 2025. The firm will continue to deploy capital over the next couple of years. As Bruce looks back to when MSV first started, he noted the strides in Knoxville’s startup ecosystem.
“The Knoxville startup scene is growing; there’s no doubt about that,” he said.
Learn more about Market Square Ventures.
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