(Photo by Steve Depolo, Flickr Creative Commons)
D.C.-area tech companies who pulled in sizable investments contributed to a big venture capital fundraising quarter for the D.C. area to start 2018.
Overall, D.C.–area companies raised $526.6 million in the first quarter of 2018, according to the most recent MoneyTree report compiled by PricewaterhouseCoopers and CB Insights. That total is up about $50 million from the first quarter last year. However, the number of deals at 37 is lower than any quarter in 2017.
A big chunk of that money came from a $250 million raise for Gaithersburg, Md.–based biotech company Viela Bio as it spun out of MedImmune. But software companies also played a role with a trio of companies announcing their second institutional rounds. Let’s review:
- Streetshares, the Reston, Va.–based fintech company focused on veterans, raised $23 million in Series B funding.
- Tysons Corner, Va.–based Upskill raised $17.2 million as it looks to expand its augmented reality platform for us in industry.
- Rockville, Md.–based real estate intelligence platform Homesnap raised $14 million in Series B funding as it looks to grow its app for use by real estate agents.
While D.C. didn’t see any “mega-deals” over $100 million like the fourth quarter of 2017, the number of those deals is continuing to go up nationwide. Later-stage deals are also increasing. Meanwhile, the number of early-stage deals is declining nationally, according to PwC and CB Insights.
“Right now, a lot of the money flowing into venture-backed companies is from large corporates or sovereigns who need to put a lot of money to work at once,” said CB Insights CEO Anand Sanwal in a statement. “This diversion of attention away from early-stage venture is something worth watching as it will have knock-on effects down the line on the venture market.”
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