As DC venture funding dollars go up, number of deals dips down

D.C. is posting big-money venture deals lately, but the Washington Post points out that doesn’t mean the number of companies getting funded is increasing.

Looking at deals for the second quarter of 2017 culled from Pitchbook investment data analyzed by the National Venture Capital Association, the Washington Post notes EverFi’s $190 million raise as the latest in a series of big venture raises that accounted for a big portion of the quarter’s total amount raised in the region. And the $435 million total venture funding is strong compared with four years ago. But, the Post notes:

that funding is going to fewer and fewer companies each year, reflecting a “winner-take-all” startup ecosystem where resources are concentrated at the top. Just 51 D.C.-area companies signed deals with venture capitalists between April and June, the second-worst quarter since 2013. That’s a far cry from a few years ago, when the number of deals per quarter tended to come in above 60.”

Framebridge’s $16.7 million Series B showed that companies are still getting funded. And D.C. isn’t alone, as this latest quarterly report mirrors national trends. But it’s worth watching to see if this gap has an impact on how companies approach funding, especially as we see startups continuing to seek new ways of raising capital.