(Photo via Bigstock)
Venture capital dollars are flowing into Seattle-area companies in near-record numbers, but most of the cash is going to more mature startups.
Dow Jones VentureSource released its quarterly U.S. venture capital report, showing the highest amount both invested and raised by VC firms in the past three years nationally.
The spike was more pronounced in the Seattle region, which reached $793 million in capital invested for Q2 — the highest since 2015, and the second-largest amount since the dot-com era. That’s up from $591 million the quarter prior, and more than double from Q4 of 2017.
While the $793 million pales in comparison to the Bay Area ($10.49 billion in Q2 of this year), it’s still a notably big number for the Seattle tech ecosystem.
Companies like Rover ($155 million), Qumulo ($93 million), and Outreach ($65 million) helped draw large amounts of capital into the region. Other big rounds during the past quarter include:
Auth0 ($55 million)
Nohla Therapeutics ($45 million)
RealSelf ($40 million)
SkyKick ($40 million)
Cardiac Dimensions ($39 million)
Just Biotherapeutics ($35 million)
Tango Card ($35 million)
While the total amount invested increased, deal count for the Seattle area came in at 44 for Q2, around average from the past several quarters. There aren’t necessarily many more startups in the region compared to years past, but companies are raising larger rounds.
Data from a PwC/CB Insights MoneyTree report shows eight later-stage deals last quarter, the most in Seattle since the first quarter of 2000. There were 23 seed and early-stage deals, about in line with past quarters.
With eight of the top ten deals in the later-stage category and the top ten deals accounting for more than 70 percent of total capital raised, EY VC expert Grabow said this follows a trend of more money going into fewer deals.
Grabow also noted a “historic” quarter for the software category — $336 million was raised across 16 deals, accounting for 42 percent of all capital raised.
The most active firm was Seattle-based Madrona Venture Group, which invested in five deals last quarter. Seattle’s Pioneer Square Labs, which recently added a venture fund to its startup studio model, had four deals, followed by Maveron with three, according to the Dow Jones VentureSource report.
Out of town firms also invested in Seattle companies — Shasta Ventures; ARCH Venture Partners; Draper Fisher Jurvetson; Sapphire Ventures; Spark Capital; Trinity Ventures; and Two Sigma Investments did multiple deals.
The Seattle …read more