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Quarterly Update: Venture Capital

Q2/21
Published on 8/16/21
Quarterly Update: Venture Capital Funding

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Houston companies raised $373.1 million in Venture Capital (VC) funding in Q2/21, up from $166.8 million from Q2/20, according to a Partnership analysis of PitchBook data. For the four quarters ending in Q2/21, Houston companies raised $1.261 billion, a record high for a four-quarter span. 

 

Venture Capital - Q2 21

 

While investment volumes are up, deal counts are down compared to pre-pandemic totals. For the four quarters ending in Q2/21, Houston companies closed 133 VC deals, down 19.4% from 166 deals the prior year. 

The average deal size was $9.1 million during the most recent four-quarter period, up from $4.5 million the year before. Several large, growth stage deals have contributed to the jump in funding. The three largest deals of the past year (HighRadius, Axiom Space and Preventice Solutions) account for over $500 million in funding.  

 

Venture Capital - Q2 21 Summary

 

On an industry basis, Health Care raised $513.2 million four quarters ending in Q2/21, up 147% from $208.1 million during the prior four-quarter period. Information Technology raised $387.1 million, up 60% from $242.0 million, Business Products and Services (B2B) raised $177.4 million, up 252% from $50.5. Energy sector startups raised $85.4 million, down 18% from $104.1 million during the same span last year.   

 

Prepared by Greater Houston Partnership Research

 

Josh Pherigo
Research Director, Data Analytics
713-844-3617
jpherigo@houston.org

 

Digital Technology Key Economic Indicators
$1.261 billion

Venture Capital raised by Houston startups for the 4-qtrs ending Q2/21

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