Venture Investors Spread Holiday Cheer to Mass. Startups in December: Companies Wrap Up $224 Million in Funding

$19 million in equity and warrants in a Series E round. Behind it came ExaGrid Systems, a Westborough, MA-based provider of data storage equipment and deduplication software that nabbed $16 million in its fifth venture round.

Other highlights from the December data, and a table of all the month’s equity deals, follow.

— November’s sector winner, healthcare, won again in December with 10 deals worth $66.51 million. Electronics followed with $40.9 million in five deals, nudging out the $40.7 million the Internet sector brought in through nine venture investments (one of which includes an unspecified equity round with backup services company VaultLogix). Software-the No. 2 sector in dollar terms in November-came in fourth with $30.5 million and five deals.

— Venture funding for Internet startups seemed to be on the mend in December. In November, the sector saw the biggest decline in deal numbers, dropping to three from nine in October. Not only were deals back up to nine in December, but the dollars invested in the sector were nearly $30 million over the $11.25 million invested in November.

— In December, energy investing looked like it was continuing the cautious comeback begun the previous month. The solo energy venture deal in December, $10 million in Series A funding to Harvest Power of Waltham, MA, is more than triple the $3 million that was invested in two energy companies in November.


December Venture Deals by Company

Author: Erin Kutz

Erin Kutz has a background in covering business, politics and general news. She holds a bachelor’s degree in journalism from Boston University. Erin previously worked in the Boston bureau of Reuters, where she wrote articles on the investment management and mutual fund industries. While in college, she researched for USA Today reporter Jayne O’Donnell’s book, Gen Buy: How Tweens, Teens and Twenty-Somethings Are Revolutionizing Retail. She also spent a semester in Washington, DC, reporting Capitol Hill stories as a correspondent for two Connecticut newspapers and interning in the Money section of USA Today, where she assisted with coverage on the retail and small business beats. Erin got her first taste of reporting at Boston University’s independent student newspaper, as a city section reporter and fact checker and editor of the paper’s weekly business section.