Funding for U.S. startups falls


NEW YORK (AP) — A new report says funding for U.S. startups declined in the April-June period from a year ago, as venture capitalists funneled less money into fewer deals.

Total investments in startups fell 9 percent to $6.67 billion from $7.34 billion a year ago. There were 913 deals completed in the second quarter, down 6 percent from last year’s 970.

The average first-time deal in the second quarter was $3.7 million, up from $3.2 million in the prior quarter.

The top deals, worth $150 million each, went to design marketplace Fab.com and biotech firm Precision for Medicine Inc.

First-time financing (companies receiving venture capital for the first time) dollars increased 24 percent to $1.1 billion going into 302 companies, a 10 percent increase in the number of deals from the prior quarter.

First-time financings accounted for 17 percent of all dollars and 33 percent of all deals in the second quarter, compared to 15 percent of all dollars and 31 percent of all deals in the first quarter of 2013.

Funding for biotechnology companies and consumer products and services startups increased. The biggest category, software, saw a decline in investment as well as the number of deals completed.

Eight of the 17 sectors saw fewer dollars invested in the second quarter, including networking and e(69 percent decrease), computers and reripherals (51 percent decrease), and semiconductors (30 percent decrease).

Dollars invested in the industrial/energy sector increased 64 percent during the quarter, which was primarily due to a single large deal, the third largest in Q2.

The MoneyTree study released Friday was conducted by PriceWaterHouseCoopers and the National Venture Capital Association, based on data from Thomson Reuters.


Reader Comments ...


Next Up in Business

Ohio appears to be losing out on Foxconn deal
Ohio appears to be losing out on Foxconn deal

As potential business location decisions go, this one is big — and it’s appearing that Ohio may lose out. Taiwanese electronics maker and Apple supplier Foxconn wants to build a display panel factory in the United States, and Ohio was recently said to be one of the states under consideration. But increasingly, Wisconsin appears to be the...
Chocolate firm names Urbana-based Robert Rothschild Farm exec as CEO
Chocolate firm names Urbana-based Robert Rothschild Farm exec as CEO

The former CEO of Urbana-based Robert Rothschild Farm will take a new position as the head of Russell Stover, a chocolate maker based in Kansas City, according to Candy Industry Magazine. Andrew Desiter most recently served as president and CEO of Robert Rothschild Farm, a specialty food manufacturer just outside Urbana known for its sauces, dips and...
Gas price increases could continue in the coming months
Gas price increases could continue in the coming months

DAYTON — Average retail gasoline prices in Dayton have risen 10.4 cents per gallon in the past week, averaging $2.22 per gallon on Sunday, according to GasBuddy's daily survey of 391 gas outlets in Dayton. This compares with the national average that has increased 2.1 cents per gallon in the last week to $2.27 per gallon, according...
Buyers stretch out car loans to record lengths to lower monthly bills
Buyers stretch out car loans to record lengths to lower monthly bills

The length of loans for new vehicles hit an all-time high last month, as buyers took on more debt and stretched their budgets for increasingly expensive cars and trucks.  The average length of an auto loan hit a record of 69.3 months in June, according to research from Edmunds.com, up almost 7 percent compared to five years ago. And Clark County...
New store pursues location in Bethel Township
New store pursues location in Bethel Township

Dollar General attempted to secure a spot in Bethel Twp. in 2015, but concerned residents halted the attempt. Now Dollar General is back, once again looking to build but this time along West National Road in Springfield. Residents originally did not support the building of a Dollar General store in the farmland area originally proposed due to concerns...
More Stories