Venture capital keeps rolling in 2nd quarter

Jul 23, 2014
Austin American Statesman

Venture capital continued to flow into Central Texas companies in the second quarter, with software startups once again raking in the most dollars


A total of $163 million was raised by 29 companies during the quarter, according to a survey by PricewaterhouseCoopers and the National Venture Capital Association. That’s a 36 percent increase from same quarter a year ago, when 20 companies received $120.2 million


Early-stage companies accounted for more than half of the deals, with 16 deals during the second quarter. Investments in young companies matters because it allows them to hire more workers, potentially expand their office space and accelerate product development and marketing


Nationwide, venture capitalists invested $13 billion in 1,114 deals in the second quarter. Silicon Valley and Bay Area companies received $7 billion of the total


U.S. venture investments for the first half of 2014 reached $22.7 billion, the highest first half total since 2001


The Central Texas region’s performance during the first six months of 2014 is far ahead of activity during the same period last year. So far this year, 51 companies have raised $360.3 million, a 31 percent increase over the $248 million received by 42 companies at this point last year


The six-month tally does not include funding received by Austin-based Surveying and Mapping Inc., which received $122.5 million from Austin Ventures in March. Thomson Reuters said the company, founded in 1994, was not counted because it was too senior-stage for the MoneyTree survey


The software industry was the largest investment sector nationally, with $6.1 billion going into 454 deals. In Austin, software also brought in the most money, with 15 companies receiving $98.5 million


Austin’s biggest deal of the quarter was Mozido, a mobile payments company, which raised $73.5 million from a Boston-based investment adviser that the company has not named. The company, founded in 2007, said it will use the funding to launch its system for mobile payments and mobile commerce around the world


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