venture capital report

Rod Werner
Senior Vice President
Managing Director
City National Technology Group

Some highlights from CB Insights' report on venture capital financing in the first quarter:

-- Boom times in venture investing often are followed by booms in VC-backed companies going public, allowing the public to get a piece of fast-growing new businesses. But this time, many startups are choosing to stay private longer. One result: relatively few initial public stock offerings.

Just 12 VC-backed companies had IPOs in the first quarter, down from 34 a year earlier.

-- While California companies dominate the venture capital market, taking 52 percent of the $11.3 billion invested in the first quarter, 39 states had at least one venture deal.

The top 10 states by number of deals: California, 348; Massachusetts, 93; New York, 88; Texas, 40; Washington, 24; Colorado, 19; Virginia, 17; Georgia, 17; Illinois, 16; and North Carolina, 13.

-- L.A. County's venture investment total of $220.3 million last quarter paled compared with the $2.2 billion invested in San Francisco companies. But L.A.'s take still exceeded the VC dollars invested in most entire states, including North Carolina ($207 million), New Jersey ($201 million) and Illinois ($124 million).

-- The major VC destinations, including Silicon Valley, Massachusetts and New York City, reached new highs in quarterly funding in 2014, then faded somewhat in the first quarter of this year. But activity in the state of Washington hit a new high in dollars invested last quarter, at $426 million across 24 companies, including home improvement website and space-commercialization company Spaceflight Industries.

-- Orange County has been fading as a venture capital magnet, a trend that continued in the first quarter. Just six O.C. firms got VC investments, down from 12 a year earlier. The total invested last quarter was $139.6 million, down from $206.8 million a year earlier.

O.C. has suffered as fewer of its startup firms in health care, a key industry, have attracted VC money.


The content of Venture Capital Report is compiled from data and sources believed to be reliable, but is not guaranteed as to accuracy or completeness. Opinions expressed are those of the authors or the interviewees and are not necessarily the opinions of City National Bank, member FDIC. This publication is intended to be a source of general information regarding subject matters of interest to our clients. The effectiveness of the advice or suggestions presented, if any, will depend on the reader’s situation and are for the reader to determine. If investments are discussed, the discussion should not be considered or relied upon as specific investment advice directed to the reader’s specific investment objectives, nor should any discussion of specific securities be taken as a solicitation or recommendation for any reader to buy or sell such securities. City National Bank (and its clients or associated persons) may at times have positions in securities and investments discussed from time to time in this publication and may make additional purchases or sales inconsistent with the discussion. City National Bank, as a matter of policy, does not give tax, accounting, regulatory or legal advice. Rules and regulations in the areas of law, tax and accounting are subject to change and open to varying interpretations. The reader is encouraged to consult his or her own tax, accounting or legal adviser.