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Quarterly Update: Venture Capital

Q3/20
Published on 7/22/20
Quarterly Update: Venture Capital Funding

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Houston-based companies raised $265.2 million in Venture Capital (VC) funding in Q3/20 for a year-to-date total of $555.7 million, down 3.9 percent from the same period last year, according to a Partnership analysis of PitchBook data. The 12-month total reached $665.9 million in, down 1.2 percent from 12 months ending in September ’19. 

Venture Capital - Q3 20

 

While investment volume is nearly unchanged from last year, deal counts are down considerably as investors grapple with the uncertainties created by COVID-19. Houston founders closed 84 VC deals through the first three quarters of ’20, down from 131 during the same period in ’19. Later stage deals have provided a safer harbor in the second and third quarters than seed and early stage deals in Houston.  Investors closed 24 later stage deals through Q3/20, up from 21 deals during that period last year. Earlier stage deals are down by nearly half the ’19 tally.

Venture Capital - Q3 20 YTD Summary

 

Notable Q3/20 deals include: $137 million to health tech firm Preventice Solutions, $30.2 million to the plant-based chemicals manufacturer Solugen, and $25 million to the oil & gas logistics platform GoExpedi. 

On an industry basis, year-over-year Q3 YTD VC funding continues to favor health care:
 
Health Care:                                                       $232.2 million, up 2.6 percent 
Information Technology:                                     $189.1, up 28.7 percent 
Energy:                                                               $35.8 million, down 61.4 percent
Business Products & Services (B2B):                $15.1 million, down 49.2 percent
Consumer Products & Services (B2C):              $28.9 million, down 41.6 percent    
Materials & Resources:                                      $31.4 million, down 2.8 percent
Financial Services:                                             $23.0 million, up 3,550 percent (from $630k)
 

Prepared by Greater Houston Partnership Research

 

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

 

Key Economic Indicators Digital Technology
$265.2 million

Houston companies received $265.2 million in VC funding in Q3/20

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