The D.C. metro area had a strong quarter in terms of venture capital funding for local startups, continuing a wave of investment activity after a record-breaking 2018.
In the second quarter, Greater Washington startups secured $438 million in funding across 53 deals, according to a new PitchBook and National Venture Capital Association breakdown. That’s up about 14 percent from the first quarter, when local term sheets totaled $384 million across 64 deals.
D.C.’s second quarter tally is the highest dollar amount raised in any Q2 since at least 2013 – as far back as the PitchBook data records. And it's the fifth-highest quarterly total in that time.
Looked at another way, the report shows District startups raised $822 million in the first half of the year. During the first two quarters of 2018, local teams landed just over $1 billion, thanks to a record-breaking Q1 that brought in $590 million through 66 deals.
The most recent quarter's funding deals were led by Viela Bio, a Gaithersburg-based drug manufacturer that raised a $75 million round in mid-June. Following it was on-demand manufacturing marketplace Xometry with a $50 million raise, custom picture frame platform Framebridge with $47 million and Warrentown, Va.-based marine tech firm Forever Oceans with $42 million, according to PitchBook. The Forever Oceans raise has not been independently confirmed by Inno.
On the exit side of investments, two major D.C.-area deals stood out in the second quarter. Beltsville, Md.-based pharmaceutical company NextCure raked in $254 million through its May 9 IPO, and McLean cybersecurity startup Verodin was acquired by FireEye for $250 million that same month.
Local investors are hoping for some of those high-value exits as well, with three major funds closing in the second quarter. Private equity shop Arlington Capital Partners raised $1.7 billion for its fifth fund, Bethesda's Hull Street Energy hauled in $500 million in its first institutional fund and Chevy Chase-based Enlightenment Capital took on an oversubscribed $250 million for its third fund.
Nationally, the biggest story in the VC industry from Q2 was the exit market, fueled by 34 venture-backed IPOs that pushed exit value to a record $138.3 billion. Including merger activity, total venture-backed exit value for the first half of 2019 reached $188.5 billion, eclipsing every full-year total on record.
For a full list of deals from the first quarter, check out our New Money roundups from April, May and June.
