Texas Bucks National Trend, Sees Venture Capital Funding Increase In Q1

Texas venture capital investments in Q1 bucked the national trend of declining dollars and deals, instead posting a big increase both quarter-to-quarter and from year-to-year, according to the latest numbers from the MoneyTree report. The report, issued by PricewaterhouseCoopers and the National Venture Capital Association, based on data from Thomson Reuters, found that Texas had $533.647M invested in the state, across 31 deals. That was significantly above last quarter, then $200.5M was invested across 36 deals, and also above the $409.45M invested across 47 deals in Q1 of 2012.

Texas was one of the few areas to see an increase, rather than decrease in venture capital seen nationally. Nationally, there was a drop of 12 percent in dollars and 15 percent in deals from the prior quarter, with only $5.9 billion invested in 863 deals during Q1 of 2013. That compares with a much more robust $6.7 billion and 1,013 deals in Q4 of 2012.

Te reason for the giant boost in Texas venture capital investments was a late stage investment in GENBAND, in Frisco. The company was the biggest venture capital investment in the nation during Q2 of 2013, raising an astounding $343.472M for its voice-over-IP and telecom infrastructure and hardware products. That investment actually had not been disclosed or announced before the report.

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