In the first quarter of 2021 venture investors pumped a whopping $398 million into companies in the Portland metro area, according to the latest Venture Monitor report from the National Venture Capital Association and research firm PitchBook.
The amount was across 44 deals, and like the national trend, it was skewed to mostly late-stage deals.
The majority of the activity was in Vancouver-based biotech firm AbSci, which raised $125 million from investors in March. In addition to that round, the data for the first quarter included another $70 million that the company announced last fall but added to in the first quarter.
In all, the top 10 deals for the quarter accounted for $338 million of the total invested in the quarter, which means that while the overall investment number is big, it was concentrated in a few deals.
However, at 44 deals in the metro area, the first-quarter deal activity is the highest in the last eight years, according to the report. The next highest was the third quarter of 2019.
Top deals in the quarter for the Portland metro include:
- AbSci with two rounds totaling $295 million.
- Sparrow Pharmaceuticals, which is developing therapies with fewer side effects to treat autoimmune diseases, with $51 million.
- Act-On Software, which makes marketing automation products, with $20 million.
- Conversa, which makes chat software for health care, with $20 million. This round started in 2018 but was finalized and closed earlier this year with the last $8 million.
Overall deal count and investment dollars were up in the first quarter in the Portland metro compared to the first quarter last year, which had $201 million invested across 33 deals, according to Venture Monitor. The first quarter of 2019 saw $109 million invested across 25 deals.
The first quarter of 2021 was the third time the amount invested in a quarter was over $300 million in the last eight years.
For the entire state of Oregon, there was $391 million invested across 47 deals in the quarter, according to the report. Even with the AbSci deal removed, the state still had close to $400 million invested in the quarter thanks to the $200 million invested into Bend-based cannabis industry software maker Dutchie.
“Elevated VC activity across investments, fundraising and exits are already on track to set new records by the end of the year,” said John Gabbert, CEO of PitchBook, in a written statement. “With record levels of VC fundraising in 2020 and dry powder still sitting at all-time highs, investors continue to write ever-larger checks at both the early and late stage, which has only been fueled further by nontraditional investors looking to capitalize on the VC investment universe and valuation growth before liquidity.”
Nationwide, the first quarter of 2021 saw $69 billion invested across 3,987 deals.
“The U.S. venture industry started off 2021 with a record quarter, possibly heralding a strong year for startups across the country. As the nation recovers from the Covid-19 pandemic, high-growth startups are well-positioned to help the economy recover and grow,” said Bobby Franklin, president and CEO of NVCA, in a written statement.
He noted there could be even more activity if the Biden administration and Congress enact new policies as they look to spur the national economy, including investment in infrastructure, climate and research and development. Franklin said the NVCA will lobby hard on key areas.
Last year, the state of Oregon saw $747 million invested by venture capitalists across 139 deals.
