The flow of money into Central Texas startups slowed down in the first quarter, a new report on venture capital activity in Austin shows.
Investments in Austin-area companies plunged 58 percent in the first three months of the year, compared to the same period a year ago, according to a survey from PricewaterhouseCoopers and CB Insights.
A total of 15 companies received a combined $114 million during the first quarter, compared with $274 million raised by 36 companies in the same quarter a year ago. That’s the lowest amount received by Austin companies since the third quarter in 2014. It’s also the second consecutive quarter in which Austin saw a significant year-over-year decline, as VC funding dropped 29 percent in the fourth quarter of 2016.
Venture capital investment in young companies is important to the Central Texas economy because it allows them to hire more workers, invest in new equipment and ramp up product development and marketing.
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