Austin startups raised a total of $1.1 billion in 2015, and the year's first quarter was the biggest fundraising quarter in at least the past two years, according to new data provided by PitchBook. The $1.1 billion distributed through 203 deals represents a slight decrease in funding compared to the nearly $1.2 billion PitchBook, the Seattle-based venture capital research firm, recorded across 237 deals in Austin in 2014.
The biggest rounds went to Volusion ($86 million), Mirna Therapeutics ($45 million) and Aeglea BioTherapeutics Holdings ($44 million). The data is drawn from SEC filings, which is why some big funding announcements, such as Civitas Learning's $68 million round, aren't fully represented. In some cases, companies didn't draw down on all of the funding committed by investors. In other cases, a deal made in 2014 may end up being filed and recorded in 2015 -- likewise some deals near the end of 2015 will likely pop up in next year's data.
The new figures highlight Austin's continued strength in developing software and its emerging biotech sector.
PitchBook listed 19 Austin-based investors who made deals in 2015. Capital Factory led the way with 22 deals channeled largely through its accelerator program. The Central Texas Angel Network, meanwhile, had 16 deals. And Silverton Partners had 10.
Joshua Baer, founder of Capital Factory, said the data looks directionally accurate, although he noted that many deals are handled privately and the data relies largely on self-reporting by companies and SEC filings. For example, while the data shows 22 investments by Capital Factory, Baer said the accelerator program made 29 investments. And each of those investments is matched by mentors and VCs.
Still, Baer said the data synchs up with his observations that Austin mostly continued the funding trends of 2014 in 2015.
"It felt like maintaining, maybe a little down, maybe a little up," he said.
At a roundtable discussion earlier this week, Baer said one entrepreneur was expressing concern about all the talk of a tech bubble and over-valuations that have led many to predict a downturn in the tech and startup ecosystem.
For example, a new report today from CB Insights showed downward trends across a variety of metrics.
Baer said he feels that Austin companies have reasonable valuations and an infrastructure and culture that helps insulated the city from some of the trends emerging from Silicon Valley and elsewhere.
"I'm ever the optimist," he said. "Honestly, we did pretty well in the last downturn, actually the last two. In a lot of ways, when things get tight, the things that are good can do better."
As for 2016, Baer said he's seen a lot of new funds gearing up. And he said there's a big push across the startup ecosystem to encourage out-of-town VC firms to set up satellite offices in Austin. Capital Factory has extended an offer to provide office space for those types of outside firms, but Baer said there hasn't been a great response to that yet.
But he said that investors are taking time to look at Austin companies and meet with them at office hour gatherings and pitch sessions.
"I think there's good things in the works," he said. "Austin still has a lot of people's attention."
Amos Schwartzfarb, managing director of Tech Stars Austin, said that 2015 was less about a single development and more about qualitative trends.
"I’ve been in Austin since 2007 and have always been impressed with the growing number of startups and early stage companies," he said in an email interview near the end of 2015. "In 2015, more than any year, I’ve been extremely impressed not just with the quantity but the quality of both ideas and founders (and their traction) has been amazing to watch. I believe the stage is being set for some amazing breakout companies in the next few years."
Schwartzfarb also said he's excited to see more Austin companies that are not in the enterprise space emerging this year.
"Austin has been known for being a great enterprise town and now we are starting to see some great consumer facing companies rise up as well," he said. "I expect that we will continue to see this trend in 2016 (and beyond)."
Also among the new PitchBook data is a list of Austin startup valuations.
Here's a look at the top five post-investment valuations, according to PitchBook:
1.) Skyonic: $285.8 million
2.) Main Street Hub: $216.3 million
3.) SpareFoot: $207.7 million
4.) WP Engine: $193.6 million
5.) Civitas Learning: $174.8 million
