Venture capital investment deals in the U.S. held steady during the recent third quarter, with $37.8 billion in deals going to companies across the U.S., according to PitchBook, a Seattle firm that tracks venture and private equity investment deals.
Deal volume was also solid, with 2,990 completed deals per PitchBook’s new deal estimation methodology.
“Despite continued uncertainty throughout the year, the rebound in public markets has given investors confidence," said John Gabbert, founder and CEO of PitchBook, in a statement. "(Limited partners) are recommitting with proven (general partners) raising successor VC funds. As investors seek growth opportunities in a low-rate environment, the growth potential of the venture strategy continues to entice both traditional LPs and nontraditional investors. Additionally, we saw the return of large IPOs during the third quarter and expect more in the coming months as VC-backed companies look to capitalize while the IPO window remains open.”
Of that total deal flow in the quarter, very little saw its way to Wisconsin, where a total of seven investments were made for a combined $17.29 million, according to PitchBook. Comparatively, there were 30 deals for Minnesota companies that quarter totaling $668 million, and 64 deals for Illinois companies totaling $703 million.
PitchBook did not include in Wisconsin's deal count SHINE Medical Technologies of Janesville announcing it raised $80 million in a Series C round in September, which would have put Wisconsin close to $100 million for the quarter.
California saw the biggest amount of VC flow, with companies raising $18.9 billion across 740 deals. Massachusetts had 169 deals for $4.36 billion and New York had 269 deals for $4.25 billion.
In the third quarter of 2019, PitchBook tallied 15 deals in Wisconsin totaling $12.19 million.
Madison biotechnology company Vascugen Inc.'s raising of just over $10 million to build out its manufacturing capacity for its product – therapeutics that repair human tissue – was the biggest deal in Wisconsin during the third quarter per PitchBook. Vascugen Inc., founded in 2017, is developing regenerative medicines based on technology developed at Indiana University. The technology being licensed from IU repairs human tissue damaged by reduced blood flow due to disease or injury. The core intellectual property being used was developed by Dr. Mervin Yoder, a Vascugen founder and IU distinguished professor emeritus.
The second largest deal in Wisconsin was Milwaukee's Sift Healthcare raising $2.8 million to expand its data science and data engineering teams. Sift Healthcare uses artificial intelligence to analyze health care billing payments. The third largest deal was Mount Horeb-based bioluminescence company Light Bio Inc. raising $1.9 million, followed by Madison-based health technology company Asto CT, Inc. raising just over $1.25 million.
