January 16, 2015

Why 2015 Could Be Big For VC

The amount of venture capital raised by companies in the DC region dropped in 2014, but things are looking up for 2015. 

Local companies raised $1.1B throughout the year, down from the $1.6B raised in 2013, according to the MoneyTree report released yesterday. The number of deals was up slightly at 196, compared to 184 in 2013. Regionally, Q4 saw 41 deals worth $359M, with Optoro (founders Tobin Moore and Adam Vitarello, above) and Edgeconnex raising the most at $50M each. State funds remained highly active during the quarter with CIT in Virginia and Maryland's DBED involved in over 10 of the quarter's transactions. 

One of the biggest VC deals of the year was Uber (co-founded by Travis Kalanick, above), raising $1.2B. Nationally, VCs invested $48B in over 4,300 companies during 2014, a 61% increase in dollars and a 4% increase in transactions from 2013. Internet-specific companies raised $12B, marking the highest level of investment since 2000. Maryland ranked 14th nationally for dollars invested and ninth for number of deals in Q4; DC ranked 16th for dollars invested and 24th for number of deals; and Virginia ranked 12th for dollars invested and 14th for number of deals. The MoneyTree report was released by PwC and the National Venture Capital Association. 

New Atlantic Ventures managing partner John Backus (above), whose firm invested in five companies last year, says the region is still a healthy market for VC despite the drop in dollars. DC still doesn't have mega deals like Uber driving (pun intended) up its numbers. Young local companies raising seed and A rounds over the last five to six years will move into B and C rounds this year. So the amount raised in the region could hit $1.5B in 2015, John predicts, with the same number of companies funded as 2014. NAV will be busy on the investing side, as well as the business building side, with its portfolio companies expected to generate $300M in revenue.

  Share: Email Facebook Twitter LinkedIn  
Arlington (Performance2) TECH
Cardinal (NewYear2) TECH

Top stories on Bisnow.com

Holiday Season Retail Sales Weaker Than Expected How a Florida Investor Plans to Save Atlantic City
5 Retailers Growing at Warp Speed Unemployment Claims Hit Four-Month Peak

The Million-Dollar Lawn Service

Mowing your own lawn is so 2014. LawnStarter, an app that allows consumers to order up a lawn service through a network of contractors, announced today it raised $1M from angels and Vayner RSE, a NYC venture firm. The startup, founded by Ryan Farley and Steve Corcoran, above, and operating out of the Austin-based Techstars program, launched and tested the service in the DC market last year. It did so well that it raised the seed round to expand throughout the region, and Orlando and Austin, where the company had also been testing out the service. The app has an instant quote tool, which uses public real estate data to calculate accurate prices. 


Create Goes Public

After three years of tweaking, testing and late-night pizza, DC startup Create released its web-based visualization platform for public consumption Thursday. It creates scenarios for real estate development projects and models financial and economic feasibility. (See our previous story.) Founder Stefan Martinovic says Create has wooed clients like several DC government agencies, DC-based real estate firms, and former DC mayor Adrian Fenty as an adviser. The platform replaces government and private property data that creates a lot of legwork for the real estate industry.

Stefan says he's had acquisition offers from other companies and investors, but Create is moving forward on its own and finishing up raising a $1.3M seed round. Stefan says he'll raise a $5M round in another few months. Create, which works out of a small DC sublet, has a staff of 10 and Stefan predicts it'll double or triple this year. The platform will have a 30-day free trial and then goes to $20/month or an annual subscription for $1k.

  Share: Email Facebook Twitter LinkedIn  
CohnReznick (Field) TECH
Bisnow (Niche-White) HALF
Tell Us

Has your company raised some money recently? Tell Bisnow's Tania Anderson about it.