As the Austin Business Journal reports, venture-backed investment declined 27 percent, from $698.5 million in 2012 to $512.7 million in 2013 according to VentureSource. In contrast, national numbers for venture-capital investments rose last year, from $30.8 billion in 2012 to $31.4 billion in 2013.
News isn’t all bad for Austin companies seeking venture capital investment, as the fourth quarter of 2013 saw $232.4 million in venture-back investments during that period, equating to over a 73% increase from the same period in the prior year. Apollo Endosurgery lead in deal volume during this period, raising $60.7 million from a group of 11 investors in mid-December. This follows the local biotech’s recent acquisition of the obesity intervention division of Allergan, Inc. for $110 million just months before their most recent round of fundraising.
Although biotech remains an active sector for Austin venture capital, business software accounted for the bulk of venture capital activity during the end of 2013, with Spredfast, Inc. leading the way, raising $32.5 million from a group of investors lead by Lead Edge Capital. Mozido, Inc. and WP Engine, Inc. were also active during the fourth quarter of 2013, raising $30 million and $15 million, respectively.
Local startups and entrepreneurs remain hopeful that the momentum from the end of 2013 continues, making more venture-backed investment available to fund our city’s rapid growth.