Austin startups raised $804.5 million in venture capital in the fourth quarter of 2024, an almost 29 percent decrease from the same quarter a year ago, according to the latest Pitchbook-National Venture Capital Association Venture Monitor Report.
The fourth quarter VC funding is also down almost 25 percent from the $1.1 billion Austin startups raised in the third quarter of 2024.Austin Startups Secure $804.5 Million in Q4 2024 VC Funding, Marking 29% Year-Over-Year Decline
The number of deals funded in the Austin Round Rock metropolitan area also dropped to 71 deals in the fourth quarter, an almost 47 percent decrease from 133 in the fourth quarter of 2023.
For all of 2024, Austin startups raised $4.5 billion, about the same amount as 2023. The number of deals funded in the Austin Round Rock metropolitan area rose to 487 in 2024, up 7 percent from 455 deals in 2023.
The top deal financed in the fourth quarter of 2024 was $175.5 million to Firefly Aerospace, based in Cedar Park, which is creating rockets for commercial launches to orbit. It was also the top deal for the fourth quarter of 2023 when it raised $300 million.
The second largest deal was Halcyon Network Management Software, which raised $115 million. The company makes software that defeats ransomware.
The third largest funding went to Ladder, the leading strength training app, which raised $105 million in Series B funding and secured an additional $90 million in growth investment from General Catalyst.
Overall, startups nationwide attracted $209 billion in venture capital across 15,260 deals. “Both figures surpass pre-pandemic and 2023 totals but are still far from zero-interest-rate policy ear highs,” according to the Pitchbook-NVCA report. “Deal activity increased at nearly all stages, with pre-seed/seed and early stage deals notching 2024 highs and late-stage deals seeing a slight bounce back after two consecutive quarters of declines.”
“After a strong quarter with the highest investment levels since mid-2022, there’s a sense of cautious optimism for VCs and entrepreneurs heading into 2025,” Bobby Franklin, President and CEO at NVCA said in a news release.
“Changes in leadership at the FTC and DOJ could ease some liquidity challenges for portfolio companies, and changes at the SEC could right-size the regulatory burdens at firms,” Franklin said. “With more VCs stepping into government roles and engaging actively on Capitol Hill, the venture industry has a unique opportunity to highlight the critical role of venture-backed companies in driving economic growth and maintaining American competitiveness. The tax bill currently making its way through Congress is especially significant, with potential to incentivize innovation, reinstate the R&D tax credit, and support the broader ecosystem.”
Top Austin VC Deals in the Fourth Quarter of 2024
Firefly Aerospace. $175.0 million
Halcyon $115.0 million
Ladder $105 million
Parachute $93.8 million
Diligent Robotics $44.3 million
Source: Pitchbook