Maryland sees an increase in VC dollars in Q2 despite a national decline

Maryland bucked a national trend in venture capital funding in the second quarter of 2022, recording an increase in the number of companies able to raise money even as the rest of the nation continued to struggle with the declining markets.

Nationally, VC deals decreased massively from $341.5 billion in the first quarter of 2022 to $144.2 billion in the second quarter. Maryland trended in the opposite direction seeing a massive increase in VC funding this quarter compared to the beginning of the year. In the first quarter, Maryland companies saw $325 million in funding, and in the second quarter that number more than doubled to $747.95 million.

There were also two mega-deals of over $100 million this quarter in Maryland, compared to only one at the beginning of the year.

Baltimore followed Maryland's lead, with funding increasing from $154.73 million in the first quarter of this year to $202.51 million in the second quarter. However, the largest funding round Pitchbook counted for Baltimore is an $82 million Series B round for Samcart. Samcart moved its headquarters to Austin in 2018, though it still retains a presence in Fulton.

One reason for Baltimore and Maryland's resilience is that early-stage companies are likely to be relatively insulated from a potential economic downturn, according to data from the Pitchbook-NVCA venture monitor report.

"Cities that have more later-stage companies are going to feel the hit of the slowdown harder than a city like Baltimore," Upsurge CEO Jamie McDonald previously told the BBJ.

Although fewer companies across the country are receiving funding, venture capital funds are earning money at near-record highs. Nationally in 2022, VC raises are already at 87% of last year's total.

The Baltimore area has seen several high-profile fundraises, such as Jeff Cherry raising a $50 million fund for Conscious Venture Partners, and Fulton-based Conversion Capital raising a $122 million fund focused on fintech.

The number of companies going public, however, is down. The past quarter had the lowest number of VC exits since 2016 in the nation.

“Recent public market performance has shrunk valuations for many of these investors’ overall portfolios, likely causing some to reassess their VC investment pace and strategies," the report said.

Here are the top deals for Baltimore companies in the second quarter of 2022:

Here are the top deals in Maryland in the second quarter of 2022: