The pandemic looks like it may have adversely affected venture-backed deals in the Austin metro area and Texas market.
In the second quarter, Austin-based companies received $257 million invested in 35 deals, according to the latest MoneyTree Report from PwC and CB Insights. That’s down nearly 32 percent in dollars invested and nearly 26 percent in deal flow, compared to the same quarter in 2019 when Austin based companies raised $377 million across 47 deals.
Overall, Texas companies attracted $420 million in investment in 59 deals during the second quarter of 2020, which is down 39 percent from $687 million invested in the second quarter of 2019. And deal flow is down 18 percent compared with 72 deals for the same quarter in 2019.
Nationwide, venture capitalists invested $26.9 billion, down 7 percent from the same quarter a year earlier into 1,374 deals, down 16 percent from the second quarter in 2019, according to the MoneyTree report.
Texas still only gets a small part of the overall venture capital invested nationwide. Startups in the top three states of California, New York and Massachusetts raised 79 percent of all U.S. investments in the second quarter of 2020.
Despite the pandemic, mega-rounds hit a new record with 69 companies raising rounds worth $100 million or more in the second quarter of 2020.
OJO Labs claimed the top spot on MoneyTree’s report for top ten deals for Austin. OJO Labs raised $62.5 million in Series D funding during the second quarter. It was also the number one deal for the entire state of Texas for the quarter.
Other companies on the top 10 list in Austin included Coder with $30 million, Medici Technologies with $25 million, Homeward with $20 million, AlertMedia with $15 million, SourceDay with $12.5 million, Ontic Technologies with 12 million, Sevco Security $6.75 million, Alleviant Medical with $6.5 million and Ambiq Micro with $5.05 million.
Top Ten Deals for Austin in the Second Quarter of 2020
| OJO Labs | Series D | $62.5 |
| Coder | Series B | 30 |
| Medici Technologies | Series B | 25 |
| Homeward | Series B | 20 |
| AlertMedia | Series C | 15 |
| SourceDay | Series C | 12.5 |
| Ontic Technologies | Series A | 12 |
| Sevco Security | Other | 6.75 |
| Alleviant Medical | Other | 6.5 |
| Ambiq Micro | Convertible Note | 5.05 |
Source: MoneyTree report, dollar figures in millions
Top Ten Deals for Texas in the Second Quarter of 2020
| OJO Labs | Series D | $62.5 | Austin |
| Bestow | Series B | 50 | Dallas |
| Coder | Series B | 30 | Austin |
| Taysha Gene Therapies | Seed / Angel | 30 | Dallas |
| Medici Technologies | Series B | 25 | Austin |
| Homeward | Series B | 20 | Austin |
| Liongard | Series B | 17.5 | Houston |
| AlertMedia | Series C | 15 | Austin |
| Stirista | Growth Equity | 13 | San Antonio |
| SourceDay | Series C | 12.5 | Austin |
Source: MoneyTree Report from PwC and CB Insights. Dollar figures in millions.