After a near-record total of venture capital investments last year, 2019 is off to slightly slower start on a national and local level. Overall, the theme is larger rounds but fewer overall deals, but the D.C. metro surprisingly reversed that trend in Q1.
U.S. venture capital funding fell 36 percent in Q1 2019 to $25 billion, according to the recently released PwC/CB Insights MoneyTree Report, with 4 percent fewer deals than the final quarter of 2018.
There were still plenty of mega-deals. Private companies raised 46 rounds of more than $100 million in Q1 nationally, down from a record Q4 2018 but well above historic levels.
Venture capital firms invested $325 million across 48 deals in the D.C. metro area, according to the report, a drop of over 55 percent in dollars but an increase of 84 percent in deal volume compared to Q4 2018.
The largest investment recorded was a $45 million raise by D.C.-based Pie Insurance, which closed its Series B round less than a year after its first sale and is planning a national expansion. Fairfax-based real estate data startup Remine closed a $30 million raise, and Tysons-based roadside assistance platform Urgent.ly took home a sizable Series B round with $21 million raised from investors including BMW i Ventures and Porsche Ventures.
Of the three DMV states, Virginia took the top spot. Funding into Virginia-based companies – nearly $200 million – doubled from Q4 2018 while the number of deals increased 145 percent from 11 to 27.
Companies in the internet sector landed more than half of local funding, with $164 million, while investments into healthcare companies ($56 million) dropped 60 percent from Q4 2018.
Though venture capital didn't come in as quickly as last year, one local investment shop is sending theirs out in a hurry.
New Enterprise Associates, based in Chevy Chase, Md., was named the most active global venture capital firm in the first quarter, with 29 investments including those in OpenDoor Labs, Databricks and Desktop Metal.
For a full list of deals from the first quarter, check out our New Money roundups from January, February and March.
