Venture capital investing in Austin companies fell in the third quarter, due in part to the lack of any major deals.
A total of $59.5 million was raised by 17 companies during the quarter, according to a survey by PricewaterhouseCoopers and the National Venture Capital Association.
That’s a 50 percent decline from the second quarter, when 20 companies raised $120.2 million.
“The single biggest thing is there were no really large investments in Austin in the third quarter,” said Eric Hornsten, managing partner of the PricewaterhouseCoopers office in Austin. “It’s also a relatively low number of deals. If you look at the last 11 quarters, it’s the second-lowest number of deals.”
The largest deal of the quarter was Fisoc, which raised $11.43 million from investors including Lead Edge Capital of New York and Austin-based Daylight Partners. The company develops social media tools that let financial institutions offer rewards programs and other services to their customers.
Early-stage companies accounted for the greatest number of deals during the third quarter, with 11 receiving funding.
Investment activity in early-stage companies is watched by economists because the funding allows startups to hire more workers, expand their office space and accelerate product development and marketing.
Nationwide, venture capital investments rose 12 percent in the third quarter, with $7.8 billion in 1,005 deals. Silicon Valley companies raised $3.6 billion of that total.
The software industry received the highest level of funding in the third quarter, with companies receiving $3.6 billion. It was the first time in 12 years that investments in software exceeded the $3 billion mark.
In Austin, software companies also received the most money, with 10 companies raising $29 million.
“The continued increase in valuations for innovative and disruptive technologies in software companies, coupled with the increase in exit activity, is driving venture capitalists to make more investments in this space,” said Mark McCaffery, global technology partner and software leader at PricewaterhouseCoopers.
The following Central Texas companies raised money in the third quarter
Fisoc, operates a social media marketing and rewards program, $11.43 million
Ambiq Micro, energy-efficient timing and power management ICs, $10 million
Atx Innovation, mobile payment solutions, $7.75 million
DrillMap, Internet database that displays data on wells and pipelines, $5.82 million
Silvercar, operates an airport car rental agency, $5 million
TrustRadius, website where professionals share information on technology, $5 million
RunTitle, online marketplace for mineral acreage title information, $4 million
Affinium Pharmaceuticals, pharmaceutical company, $3 million
Stormpulse, solutions to monitor weather threats, $2.17 million
DejaSet, software for capturing live performances, $1.2 million
TrendKite, operates online platform for media monitoring and analytics, $1.2 million
Innography, business intelligence software solutions, $1 million
Umbel, digital audience measurement services, $800,000
Alafair Biosciences, products that solve post surgical tissue adhesion problem, $525,000
Kolarity, develops a cloud-based GIF marketing platform, $500,000
Stat, software company, $50,000
Mutual Mobile, mobile product development company, undisclosed
Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree Report, Thomson Reuters