venture capital report

Rod Werner
Senior Vice President
Managing Director
City National Technology Group
(650-812-8311
Rod.Werner@cnb.com

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 Porch.com 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.

 

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