VC report: $40M in Missouri deals, another $10B quarter nationally

Missouri saw eight venture capital deals worth a combined $40.5 million during the second quarter this year, according to the quarterly MoneyTree Report from PricewaterhouseCoopers and the National Venture Capital Association. Those totals represented the state’s second-highest number of deals and third-largest capital haul for a second quarter in the last decade.

However, it marked a dip in both deals and funding from the first quarter of this year, when more than $58 million was invested across 14 deals.

Missouri ranked 20th in the U.S. for total number of deals and 23rd for total amount of money raised in the second quarter of 2016.

Data for the report was provided by Thomson Reuters.

U.S. extends $10 billion streak

Venture capitalists invested $15.3 billion in 961 deals nationwide during the second quarter. It was the 10th consecutive quarter during which more than $10 billion was invested in venture capital deals across the U.S.

However, the quarterly totals marked decreases in both deals and capital invested compared to the second quarter of 2015, when there were 1,231 deals worth a total of $17.4 billion. Last year’s second quarter was the best quarter for both deals and total funds raised since at least 2012.

Nationally, the software industry continues to draw the most investment, receiving $8.7 billion across 379 deals in the most recent quarter. Software has held the top spot for dollars invested in the report for the last 27 quarters.

Biotechnology and IT services were Nos. 2 and 3, respectively, for funding in the second quarter. The biotech industry saw $1.6 billion invested across 100 deals, and IT services companies raised $946 million in 80 deals.

Midwest holds steady

The Midwest was ranked fifth out of 19 regions for venture capital investment during the second quarter, occupying the same spot as it did in the first quarter of this year and the second quarter of 2015.

In the second quarter of 2016, there were 79 deals in the Midwest worth a total of $494 million. Though this is a decrease from the 91 deals made in last year’s second quarter, it’s an increase in the amount of capital, up from $379 million in the second quarter of 2015.

The total amount invested in venture capital deals in the Midwest for 2016 is about $995 million.


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