Senior Vice President
Southwest Market Manager
City National Technology Group
(650) 812-8311
Billy.OGrady@cnb.com

 

vc report

 

Orange County saw a sharp fall in venture capital funding in the fourth quarter, continuing a recent trend of declining financing activity.

Just six deals were completed worth $114.2 million in the quarter, down from 12 deals worth $140.9 million in the summer quarter and a steep drop from 11 deals worth $245.3 million a year earlier, according to CB Insights.

O.C.’s slump contrasted with a surge in venture financing nationwide to $13.5 billion in the fourth quarter, up from $9.8 billion in the third quarter and $8 billion in the fourth quarter of 2013.

“O.C. venture financing has been in a slowdown for the last three or four years,” said Billy O’Grady, head of City National’s Southern California Technology Group. “I think they’re in a regrouping phase,” he said.

For all of 2014, venture funding in O.C. fell to $690 million from $719 million in 2013 and $900 million in 2012, CB Insights said.

There were just a handful of deals last quarter in O.C.’s traditional hotbed of health care.

The biggest health care deal was a $15 million Series C financing for OrthAlign of Aliso Viejo. The six-year-old company makes devices to help surgeons boost precision in knee and hip implant surgery.

Another health care firm, Sentrian of Aliso Viejo, attracted $12 million in Series A funding. The startup is testing a “remote patient intelligence” system that uses biosensors to monitor patients’ health. The goal is to detect failing health before it becomes serious enough to require hospitalization.

The single-biggest O.C. deal in the quarter was $60 million in Series C financing for Alteryx. The Irvine company calls itself “the leader in data blending and advanced analytics software.” Data blending means using multiple sources of data to find meaningful patterns in, say, consumer behavior toward a product or service.

EQUITY FINANCINGS FOR ORANGE COUNTY VENTURE-BACKED COMPANIES*

  4 Q 2014 3 Q 2014 2 Q 2014 1 Q 2014 4 Q 2013
Number of Financing Deals 6 12 9 15 11
Amount Invested ($MM) $114.2 $140.9 $167.2 $226.5 $245.3

TOP DEALS IN ORANGE COUNTY

COMPANY NAME DESCRIPTION CITY ROUND TYPE RAISED ($MM) INVESTORS
Alteryx Data blending and analytics software provider Irvine Series C $60.0 Insight Venture Partners, Sapphire Ventures, Toba Capital
Illuminate Education Web-based products and services for education-related data Irvine Series A $26.5 Insight Venture Partners
OrthAlign Precision alignment technology for orthopedic surgeons Aliso Viejo Series C $15.0 River Cities Capital Fund, Mutual Capital Partners Fund
Sentrian “Remote patient intelligence” that detects patient deterioration remotely Aliso Viejo Series A $12.0 TELUS Ventures, Reed Elsevier Ventures, Frost Data Capital
Bioniz Developing a new class of therapeutics targeting cytokines and their receptors Irvine Seed VC - II $0.7 Catalina Ventures
Telogis SaaS-based platform for logistics for workforces In the field Aliso Viejo Unattributed VC Undisclosed GM Ventures

 

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