Third Quarter and 2021 VC Investments Hit Record Levels for Texas and Austin

In the third quarter, the U.S. saw $82.8 billion in capital invested in 3,518 deals, according to the Q3 Pitchbook-National Venture Capital Association Venture Monitor report.

For the first three quarters, the report’s data shows companies have attracted $238.7 billion across 12,837 deals and breaking the previous record set in 2020 of $155.4 billion.

And on a statewide basis, Texas attracted $1.8 billion of venture capital in 174 deals in the third quarter. Overall, for the first three quarters, Texas has attracted $6.7 billion worth of

investment in 541 deals.

Austin saw $981.4 million invested in 76 deals in the third quarter. For the year, Austin companies have attracted a record $3.8 billion in venture capital in 265 deals.

Texas had $3.15 billion in 22 exits in the third quarter. Overall, for the first three quarters, Texas has had $10 billion worth of exits in 55 deals.

Austin had the bulk of the state’s exit activity with $2.97 billion worth of exits in the third quarter. And year to date, $5.7 billion in exits.

“Eighteen months into the COVID-19 pandemic, the VC industry has continued to prove its resiliency while also directly supporting the country’s economic recovery and strengthening public markets,” according to the report.

“The growing participation of well-resourced nontraditional investors such as mutual funds, PE, hedge funds, and crossover investors in the venture space has contributed to the rise in deal size and valuations, reshaping the industry landscape in the process.”

In the third quarter, the U.S. saw a record $187.2 billion in exit value, and a total of $582.5 billion year to date, 101.6 percent higher than 2020’s record of $289 billion, according to the report.

Many of those companies are heading to the public markets to exit. Initial Public Offerings are having a blockbuster year with 221 occurring so far nationwide.

Austin’s biggest IPOs of 2021 include Bumble in a traditional IPO and E2Open in February through a special purpose acquisition company, or SPAC, FTC Solar in April, and DISCO in July, both traditional IPOs.  

“If there are any clouds on the horizon for the industry, they may come in the form of the evolving pandemic, as well as economic and policy uncertainty,” according to the report.

Top 10 Deals for the Third Quarter of 2021 in Austin

  1. Icon Technology  $207 million  Series B
  2. Elligo Health $135 million  Series E
  3. Fetch Package    $50 million Series C
  4. Self-Financial      $50 million Series E
  5. Olea Edge Analytics $35 million  Series C
  6. ClosedLoop.ai      $34 million Series B
  7. Eventus                 $30 million. Series B
  8. Billd                        $30 million    Series B
  9. OsteoCentric $30 million Later Stage VC
  10. Rey                          $26 million   Series A