breaking news

Watch live: Austin police address de-escalation policy

Austin sees 1st quarter dip in venture funding


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.

For the full story, go to www.512tech.com.



Reader Comments ...


Next Up in Business

After strong 2017 finish, outlook bright for Austin office market
After strong 2017 finish, outlook bright for Austin office market

The Austin-area’s office market rolled to a strong finish in 2017, new reports show, propelled by Fortune 500 companies including Facebook Inc., Google, Indeed and HomeAway signing sizeable office leases in the market last year. Major lease transactions were the theme of 2017, according to the latest office market report from the Austin office...
Up the Ladder

Credit unions Greater Texas Credit Union has named Lisa Bateman vice president-consumer lending. Consulting Potomac Strategy Group has named Jamie Bennett vice president. E-Commerce Twyla has named Thomas Galbraith chief executive officer. Health care HNI Healthcare has named Michael Saunders president. Law firms Weisbart Springer Hayes has named Mia...
Top Local Business Stories of the Week
Top Local Business Stories of the Week

TEXAS ECONOMY With tax overhaul as ‘tailwind,’ regional economy surged, Dallas Fed says: Economic activity in Texas and parts of two neighboring states surged over the past six weeks, as the federal tax overhaul boosted confidence across a wide range of businesses in the region, according to a report last week from the Federal Reserve Bank...
Despite tight labor market, Austin job growth maintains momentum
Despite tight labor market, Austin job growth maintains momentum

Back around the middle of last year, workforce experts looked at the easing rate of Austin-area job growth and figured the inevitable had finally arrived: The region’s tight labor market was bringing expansion back to more reasonable levels. In true Austin fashion, though, local hiring re-accelerated in the months since. And after modest job...
Amazon raises monthly Prime membership rate
Amazon raises monthly Prime membership rate

The monthly membership fee for Amazon Prime rose Friday from $10.99 to $12.99. Company officials said the annual membership will remain at $99 dollars. Monthly customers do not get access to Amazon Video, which costs $8.99 a month. The last Prime subscription hike came in 2014, when Amazon increased its yearly membership from $79 to $99. The e-commerce...
More Stories