Austin Startups Raise $870 Million in 80 Deals in the Second Quarter of 2022

Austin Startups Raised $870 million in the second quarter of 2022, down 55 percent from $1.9 billion during the same quarter in 2021, according to the latest Pitchbook-National Venture Capital Association Venture Monitor report.

The deal volume also dropped 13 percent to 80 deals in the second quarter compared to 94 deals for the same quarter a year ago.

DealHub and SANA both raised $60 million each in the second quarter, tying for the two biggest deals of the quarter.

MicroTransponder raised $53 million, followed by Data.world with $50 million and Albedo with $49 million, according to the Pitchbook-NVCA report.

Overall, in Texas, 165 startups raised nearly $1.7 billion in the second quarter of 2022, 37 percent decrease compared to 201 startups raising $2.7 billion for the same quarter in 2021.

Overall, U.S. venture capital deal activity in the first half of 2022 was strong, according to the Q2 2022 PitchBook-NVCA Venture Monitor, the report jointly produced by PitchBook and the National Venture Capital Association (NVCA) with support from Insperity and J.P. Morgan.

“While deal count remained strong when compared with the highs of 2021, deal value declined significantly across all stages,” according to the report.

“As the market continues to react to volatility over the past six months, the venture ecosystem demonstrates strength as dry powder reaches new heights and fundraising levels surpass more than $100 billion for the second consecutive year,” said John Gabbert, founder and CEO of PitchBook. “Exits remain extremely low while late-stage companies act with caution as a result of bearish public market activity. There are still uncertainties as to what to expect in the second half of the year, however, market indicators show resilience to weathering the potential economic downturn.”