Philadelphia-area startups saw the greatest percent increase in venture capital funding in the first quarter, according to analytics firm CB Insights, an increase that more than doubled any other major metropolitan region.
Greater Philadelphia was one of three regions where venture capital funding didn't drop from the fourth quarter of 2021. Also seeing increases were Atlanta, up 30%, and Dallas, up 18%.
Funding going to Philadelphia-area startups rose 71% in the first three months of 2022 to $1.5 billion, up from $874 million in the fourth quarter of last year.
The first-quarter figure was bolstered by a $350 million investment from SK Inc. in King of Prussia's Center for Breakthrough Medicines. The investment accounted for nearly a quarter of the region's total funding. Wilmington, Delaware, fintech lending and credit operator Marlette Funding and Philadelphia data analytics firm dbt Labs both added late-stage rounds of over $220 million.
Across the 80 deals made with Philadelphia-area startups, 55% were early-stage rounds and another 10% were late-stage investments.
While Philadelphia saw its funding skyrocket compared to the fourth quarter of 2021, neighboring cities and many of the nation's tech hubs posted declines.
Funding across the country was down 23% in the first quarter. In New York, funding dropped about 35% from $17.9 billion to $11.7 billion. The $17.9 billion was a record in New York. Boston startups saw less than half of the funding they did in quarter four, dropping 52% to $4.4 billion. The region's $9.1 billion raised in the fourth quarter set a high mark. And in Washington D.C., venture capital firms slowed their investments to the tune of 28%, investing $1.1 billion.
The Philadelphia market set its quarterly funding record a year ago, raising nearly $1.9 billion in the first three months of 2021. The $8.1 billion it raised throughout 2021 was also a record, as the region surpassed its previous mark of $3.1 billion after quarter two.
In total, $71.2 billion was invested in companies across the U.S during the quarter, including some $29 billion raised by Silicon Valley firms.
