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Originally published Wednesday, July 16, 2014 at 9:07 PM

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Venture investing jumps in second quarter

The latest quarterly figures from Dow Jones VentureSource shows a healthy jump in venture investing in the second quarter. The bulk of the money went toward business and financial-services companies, as well as IT startups.


Seattle Times business reporter

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Venture capitalists invested $364 million in Washington state companies in the second quarter, a 21 percent increase from $300 million in the same quarter last year, according to the Dow Jones VentureSource report being released Thursday.

The state had 27 deals during the quarter — down from last year’s 32 — captured mostly by businesses in the information technology and business and financial-services sectors, each with eight deals. These were followed by the consumer-services sector, with six deals.

Washington’s business and financial services also claimed the largest amount of investment dollars, with $134.1 million, followed by IT with $85.2 million. Health care was not far behind, with $62.9 million.

Nationally, venture capitalists invested $13.8 billion in U.S. companies, a 60 percent increase from the more than $8.6 billion in the second quarter last year.

The United States had 917 deals this quarter, a 2 percent decrease from the 938 deals made in the second quarter of 2013.

The consumer-services sector led venture-capital investments in the United States with almost $3.9 billion, followed by nearly $3.3 billion in the business and financial-services sector.

Greg Beams, a partner at Ernst & Young in Seattle, said when reviewing investments each quarter, he pays more attention to the number of deals than the amount invested because single large deals often can skew the data.

“In our region, you can see fairly big dollars shifts from one quarter to the next. ... One big deal can change things,” he said.

In the final quarter of 2013, Juno Therapeutics received $120 million in funding, which made for a very large final quarter. This quarter, however, no single company set itself apart, Beams said.

According to the Dow Jones report, Seattle-based ExtraHop Networks, which sells products companies use to analyze data moving across their networks, received the largest investment, with $41 million in fourth-round funding.

Avvo, known for its vast directory of layer profiles, client reviews and online forums for legal advice, was close behind with $37.5 million. Bellevue-based Smarthsheet.com was third with $35 million.

Coral Garnick: 206-464-2422 or cgarnick@seattletimes.com. On Twitter @coralgarnick



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