The first quarter of the new decade kicked off with a bang, even if it ended on a low note. As the effects of COVID-19 take their toll on startup investing, Q1 2020 might very well be the first and the last normal quarter as the economy tries to get back on track.
But even as unemployment numbers mount with numerous startup layoffs, in Massachusetts, the amount of venture capital invested in startups surged in value compared to Q1 2019.
In Q1 2020, Massachusetts startups raised over $4 billion dollars of investment across 194 deals, according to the Venture Monitor Report by the National Venture Capital Association and PitchBook.
"Despite these unprecedented times, the first quarter of the year saw healthy venture activity. That said, there are still uncertainties as to what the next few quarters of the year will hold as we navigate the coronavirus pandemic and its full effects on the venture ecosystem," said John Gabbert, founder and CEO of PitchBook, in a statement. "Although US VC dry powder sat at a record $121 billion as of mid-year 2019, suggesting that there is plenty of capital available for firms to weather the storm, VC firms will need to evaluate situations on an individual basis as differing aspects such as sector focus will largely determine their ability to support portfolio companies."
The state's top deals were:
- Toast - $400 million
- Berkshire Grey - $263 million
- EQRx - $200 million
- Indigo Agriculture - $200 million
- Intarcia Therapeutics - $198 million
- Elevate Bio - $170 million
- Concerto Health AI - $150 million
- Iora Health - $126 million
- Flywire - $120 million
- Generation Bio - $110 million
It might be worth noting that high-growth unicorn startups from the list including Toast and Indigo Ag announced job cuts.
Meanwhile, some of the biggest exits in the state were:
- Promedior
- Beam Therapeutics
- Black Diamond Therapeutics
- Imara
- Localytics
- Arthrosurface
The effects of coronavirus lockdowns on the economy remain to be seen, but if angel investing is any measure to go by, experts say the 2008 financial crisis can serve as an indicator.
“Angel investors are going to see their overall net worth go down if the economy continues to slow down. So that's an impact on their investment abilities. That's a simple formula,” Ziad Moukheiber, CEO of Boston Harbor Angels Inc. told Boston Business Journal. “They are going to review their portfolios and see how their portfolios survive through the coronavirus.”
