Flurry of Early Stage Internet Deals Highlight Q4 VC Activity; Investments Slip to $5.5B

New York (31 and $258M); Palo Alto, CA, (21 and $128M); and Mountain View, CA, (19 and $172M).

San Diego is No. 5, with 18 deals totaling $191 million. Seattle is sixth, with 18 deals and $132 million, followed by Austin, TX, (17 and $81M).

Mass Quarterly Trend

Boston is No. 8, with 17 deals and $95 million in venture investments. Cambridge, MA, is No. 9, with 16 deals and $199 million invested. Sunnyvale rounds out the top 10 (15 deals and $170 million).

The fourth-quarter totals for Boston look more impressive when one includes the nearby communities of Cambridge, Waltham, Woburn, and Lexington. That brings the total number of deals to 51 and overall investment to $475 million, and puts the Boston area head of San Francisco—but not ahead of the Bay Area (see below).

Adding the Washington communities of Redmond, Bellevue, Kennewick, and Bothell to Seattle’s Q4 numbers increases the overall deal count to 26 and VC total to $166 million.

Washington Quarterly Trend

Among states, California continues to represent the top of the mountain in terms of venture investments. ChubbyBrain found that California accounts for 48 percent of total funding nationwide and 44 percent of the deals. As impressive as that might seem, it’s a decline from Q3, when the Golden State accounted for 51 percent of the total number of deals and 56 percent of all VC invested during the quarter.

Of course, Northern California accounts for nearly all of the activity. The Bay Area communities of San Francisco, Redwood City, Mountain View, Sunnyvale, Santa Clara, Palo Alto, San Mateo, San Jose, and Emeryville account for 161 deals and more than $1.57 billion invested during the fourth quarter. Of the top 10 VC investment cities in California during Q4, Chubby Brain found that San Diego was the only Southern California city to make the list.

Author: Bruce V. Bigelow

In Memoriam: Our dear friend Bruce V. Bigelow passed away on June 29, 2018. He was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here. Bruce Bigelow joined Xconomy from the business desk of the San Diego Union-Tribune. He was a member of the team of reporters who were awarded the 2006 Pulitzer Prize in National Reporting for uncovering bribes paid to San Diego Republican Rep. Randy “Duke” Cunningham in exchange for special legislation earmarks. He also shared a 2006 award for enterprise reporting from the Society of Business Editors and Writers for “In Harm’s Way,” an article about the extraordinary casualty rate among employees working in Iraq for San Diego’s Titan Corp. He has written extensively about the 2002 corporate accounting scandal at software goliath Peregrine Systems. He also was a Gerald Loeb Award finalist and National Headline Award winner for “The Toymaker,” a 14-part chronicle of a San Diego start-up company. He takes special satisfaction, though, that the series was included in the library for nonfiction narrative journalism at the Nieman Foundation for Journalism at Harvard University. Bigelow graduated from U.C. Berkeley in 1977 with a degree in English Literature and from the Columbia University Graduate School of Journalism in 1979. Before joining the Union-Tribune in 1990, he worked for the Associated Press in Los Angeles and The Kansas City Times.