In a sign that the interest in new companies here is growing, Orange County-based businesses received $188.1 million in venture capital money in the third quarter, an increase from the previous quarter and also a 31 percent increase from the same time a year ago.

Venture funding for OC companies through the first nine months of this year totaled $483.8 million, up nearly 42 percent year over year.

That's the good news.

Unfortunately, the $188 million raised during the quarter was far behind the $720 million raised by Los Angeles-area companies and the $3.2 billion raised by Northern California firms; Orange County also lagged behind both Boston and New York.

The total in Orange County went to 13 companies, compared with eight during the same time last year.

The largest deal for the quarter in Orange County was a $93 million investment in Aliso Viejo-based Telogis Inc. late September. Telogis makes navigation software that's used by companies with large trucking fleets. The deal, led by Menlo Park-based Kleiner Perkins Caufield & Byers, was the largest deal recorded last quarter and so far this year.

Other large deals included:

  • A $19 million infusion into Greenwave Holdings Inc. in Irvine. Greenwave provides home energy management services.
  • Biosynthetic Technologies LLC in Irvine was the sole energy and utility company that received venture funding last quarter, with a total of $9 million.

Nationwide, the trends were encouraging. U.S.-based venture-backed companies raised 11 percent more in venture and equity funds during the third quarter than they did during the second quarter; they also saw the highest number of funds since the fourth quarter of 2008. A total of $8.1 billion was invested during the quarter nationwide in 806 venture capital deals.

EQUITY FINANCINGS FOR ORANGE COUNTY VENTURE-BACKED COMPANIES*

  3 Q 2013 2 Q 2013 1 Q 2013 4 Q 2012 3 Q 2012
Number of Financing Deals 13 11 11 13 8
Amount Invested ($M) $188.05 $175.99 $119.73 $249.18 $143.70
 

TOP 10 DEALS IN ORANGE COUNTY

COMPANY NAME DESCRIPTION CITY ROUND TYPE RAISED ($MM) INVESTORS
Telogis Inc. Consumer software platform Aliso Viejo Later $93 Kleiner Perkins Caufield & Byers, Undisclosed Investors
CrowdStrike Inc. Security technology Irvine Second Round $30 Accel Partners, Okapi Venture Capital LLC, Warburg
Pincus LLC
Greenwave
Holdings Inc.
Home energy
management solutions
Irvine Third Round $19 Craton Equity Partners,
Westly Group
BlueCava Inc. Consumer activity analysis solution Irvine Second Round $10.11 Undisclosed Venture Investor(s)
Biosynthetic Technologies LLC Bio-based synthetic oils Irvine Second Round $9 Monsanto
Cirro Inc. Data warehousing
solutions
San Juan Capistrano Second Round $8 Frost Venture Partners,
Miramar Venture Partners, Toba Capital
Security First Corp. Information assurance and data privacy software Rancho Santa Margarita Later $5.58 Undisclosed Venture Investor(s)
Kareo Inc. Cloud-based medical office software Irvine Sixth Round $5.50 Undisclosed Venture Investor(s)
Brand Affinity Technologies Inc. Celebrity marketing services Irvine Fifth Round $3.45 Undisclosed Venture Investor(s)
Combatant Gentlemen LLC E-Commerce platform for tailor-made suits Irvine First Round $2.40 Individual Investors, Maveron LLC, Upfront Ventures
 

 

*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.

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. 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 and legal adviser.