Despite robust seed activity, Massachusetts did not have a banner quarter and once again was trumped by its neighbor New York - for the third straight quarter.

Results for the entire state were essentially flat on number of deals as compared with Q2 2013 but dollars invested were $690 million, down 16% from the previous quarter and 8% from the third quarter
of 2012.

The quarter was dominated by one large $100 million software deal and several life sciences deals. Biotech continues to attract a large percentage of the dollars and has been booming of late, highlighting the strength of the Cambridge and Boston biotech network. The biotech sector in Boston is red hot right now.

The largest deal by far was a $100 million third round financing from Bessemer Venture Partners and others for Anaqua Group, a Boston-based provider of worldwide intellectual asset management (IAM) software solutions and services. It offers Anaqua Business Impact, an intellectual property management system to support IP strategies as well as several other software solutions.

Some other large Boston-area deals include:

  • Dicerna Pharmaceuticals Inc., a Boston-based developer of therapeutic agents and related drug delivery systems raised $60 million in a third round financing deal from Abingworth Management Inc., Brookside Capital LLC, Deerfield Management, and others.
  • Mitokyne Inc., a Boston-based developer of mitochondria-related drugs, raised $45 million in a first round financing deal with Astellas Pharma Inc., Longwood Founders Fund, and MPM capital.
  • Civitas Therapeutics Inc., a Chelsea-based developer of pulmonary delivery therapies, raised $38.30 million in a third round financing deal with Bay City Capital LLC., Alkermes, Canaan Partners, and others.

U.S.-based venture-based companies raised 11% more in venture and equity funds during the quarter from the previous quarter and it was the highest number of funds since fourth quarter 2008. A total of $8.1 billion was invested during the quarter nationwide in 806 venutre capital deals.

Nationwide as usual, companies in the Bay Area received the bulk of venture money, a total of $3.19 billion, while New York metro received $800 million, outpacing Los Angeles total of $720 million.

EQUITY FINANCINGS FOR BOSTON AREA VENTURE-BACKED COMPANIES*

  3 Q 2013 2 Q 2013 1 Q 2013 4 Q 2012 3 Q 2012
Number of Financing Deals 77 79 73 71 80
Amount Invested ($M) $688.04 $824.74 $678.40 $627.70 $749.22
 

TOP 10 DEALS IN BOSTON

COMPANY NAME DESCRIPTION CITY ROUND TYPE RAISED ($MM) INVESTORS
Anaqua Inc. Provider of intellectual asset
management (IAM) software
solutions.
Boston Third round $100 Bessemer Venture Partners, Insight Venture Partners
Dicerna
Pharmaceuticals
Inc.
Developer of therapeutic agents and related drug delivery systems. Watertown Third round $60 Abingworth Management Inc., Brookside Capital LLC, Deerfield Management, Domain Associates LLC, Omega Fund Management UK LLP, Oxford Bioscience
Mitokyne Inc. Developer of mitochondria-related drugs. Boston First round $45 Astellas Pharma Inc., Longwood Founders Fund, MPM Capital
Civitas Therapeutics
Inc.
Developer of pulmonary delivery therapies. Chelsea ThirdRound $38.30 Alkermes, Bay City Capital LLC*, Canaan Partners, Fountain Healthcare Partners, Longitude Capital Management Co. LLC, RA Capital Management LLC
Benu Networks Inc. Provider of a software platform for mobile operators that augment networks with Wi-Fi and small cells. Billerica Second Round $26.60 Comcast Ventures, Spark Capital, Sutter Hill Ventures*
InfraReDx Inc. Provider of photonic-based medical devices for diagnosis and the treatment of coronary artery disease. Burlington Corporate $25 Nipro Corp.*
Rive Technology
Inc.
Provider of materials-based solutions for catalytic and separations processes Boston Fifth round $20.35 Advanced Technology Ventures, Blackstone Group, Charles River Ventures, Mitsui & Co. Global Investment Ltd., Nth Power LLC, Saudi Aramco Energy
Karyopharm
Therapeutics Inc.
Developer of drugs directed against nuclear transport targets for the treatment of cancer and other major diseases. Natick Fourth round $19 Delphi Ventures, Foresite Capital Management LLC
Edimer
Pharmaceuticals
Inc.
Developer of a therapy for the rare genetic x-linked disorder hypohidrotic ectodermal dysplasia (XLHED). Cambridge Third round $18 New Enterprise Associates*, Sanofi-Genzyme BioVentures, Third Rock Ventures LLC, VI Partners
SynapDx Corp. Developer of diagnostic blood-based testing services for the detection of autism spectrum disorders (ASDs). Lexington Third round $15.35 Foundation Medical Partners, General Catalyst Partners, Google Ventures*, North Bridge Venture Partners
 

 

*Equity financings include cash investments by professional venture capital firms, corporations, other private equity firms, and individuals into companies that have received at least one round of venture funding.

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