Venture capital investments in Austin-area startups climbed back above $1 billion in the fourth quarter last year, marking a significant rebound from an exceptionally slow period in the third quarter and potentially signaling what's in store this year.
Local startups raised $1.1 billion across 126 deals in the 2023 fourth quarter. That’s the best deal count since the high-water mark of 163 in the first quarter of 2021. The dollar amount is also higher than what Austin typically saw before the boom days of 2021.
But the PitchBook-NVCA report also showed that, on a national and global scale, early funding is down across the board, which is a troubling sign for new founders.
"In 2023, the combined deal value of pre-seed and seed experienced a sharp YoY decline, slipping from $24.2 billion to $14.6 billion," according to the report. "This phenomenon is partially attributable to a pullback of large investors from the seed stage as the market gradually adapts to 'a new normal' following the 2021 capital exuberance."
Nonetheless, local startups have been busy raising new funds and announcing new rounds so far in 2024. Here's a quick look at the activity this year, so far.
Austin- and Houston-based cognitive assessment and care management platform BrainCheck Inc. on Jan. 5 reported raising about $15.4 million in new equity funding and other securities. It wasn't immediately clear who supplied the new infusion.
The startup, led by CEO Kim Rodriguez, had previously raised about $21 million from backers, including S3 and fellow Austin-based firms Next Coast Ventures, S3 Ventures and True Wealth Ventures. The company was founded in 2015 by neuroscientists and technologists Yael Katz and David Eagleman. In October last year, the company launched a new tool called BrainCheck Screen that includes three tests to quickly evaluate several cognitive issues that help indicate if further testing is needed.
Austin-based leadership and mentoring platform Ceresa Inc. on Jan. 3 reported raising $8.9 million in new equity funding and other securities. The startup, led by founder and CEO Anna Robinson, was started in 2018. While the new SEC filing doesn't name investors, the company's backers have included Austin's Next Coast Ventures, LiveOak Venture Partners, Notley and Sandusky Ventures, which is the investment arm of Sandusky Newspaper Group.
Locally based real-time payments platform startup Trice Technologies Inc. said Jan. 9 that it has closed a seed funding round. The size of the investment wasn't disclosed. The funding came from Canadian firm Diagram Ventures, Royal Bank of Canada and Atlanta-based JAM FINTOP. The cash influx will help the company build new tools, expand its engineering team and forge new partnerships. The startup was founded by CEO Doug Yeager in 2022.
A health care startup founded by the former dean of the Dell Medical School has landed a massive new funding round to expand its specialty care offerings. Harbor Health Team Inc. said Jan. 11 that it has secured $95.5 million in funding, bringing its total raised since its founding in 2022 to $128 million.
The investment was led by General Catalyst, with additional backing from Alta Partners, 8VC and returning investors Health 2047 Capital Partners, Lemhi Ventures and Martin Ventures.
The primary and specialty clinic group startup was founded by former Dell Medical School Dean Dr. Clay Johnston, 8VC advisor Eric Scott and health care entrepreneur and investor Tony Miller. Last year, it expanded from two locations in Central Texas to eight, while also adding two mobile health units to cover local employers. It also launched a walk-in and after-hours clinic in Westlake and plans to open another in Round Rock in January.
