Washington Startups Raised $21.7M in December, Down from $44.4M in Previous Month

Just a quick recap of the venture deals in Washington state from the last month of 2009. Things really slowed down heading into the dead of winter, with just four venture financings, all in software and Internet, worth a total of $21.7 million (see table below). That’s less than half the money invested in November, when Washington-based companies saw $44.4 million put into 10 venture deals across healthcare, energy, and software.

That’s the official tally from ChubbyBrain, the New York-based maker of tools for investors, startups, and entrepreneurs. The figures include only companies headquartered in Washington state.

The good news, in my view, is that the December deals were all Series A or Series B financings of up-and-coming tech companies, all of whom we’ve been tracking at Xconomy. They ranged from LiveMocha, a Bellevue, WA, startup developing online language-learning software, to the brand new online-shopping startup Zulily in Seattle (both companies are backed by Seattle-based VC firm Maveron).

The fear is that, as the effects of the recession reverberate, venture firms will stay in triage mode and devote less of their energy to new startups and new ideas. So far, 2010 is looking a little more promising, but it’s still early.

Here is the recap of December 2009 venture deals in Washington:

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December 2009 venture deals for Washington State (courtesy of ChubbyBrain)

Author: Gregory T. Huang

Greg is a veteran journalist who has covered a wide range of science, technology, and business. As former editor in chief, he overaw daily news, features, and events across Xconomy's national network. Before joining Xconomy, he was a features editor at New Scientist magazine, where he edited and wrote articles on physics, technology, and neuroscience. Previously he was senior writer at Technology Review, where he reported on emerging technologies, R&D, and advances in computing, robotics, and applied physics. His writing has also appeared in Wired, Nature, and The Atlantic Monthly’s website. He was named a New York Times professional fellow in 2003. Greg is the co-author of Guanxi (Simon & Schuster, 2006), about Microsoft in China and the global competition for talent and technology. Before becoming a journalist, he did research at MIT’s Artificial Intelligence Lab. He has published 20 papers in scientific journals and conferences and spoken on innovation at Adobe, Amazon, eBay, Google, HP, Microsoft, Yahoo, and other organizations. He has a Master’s and Ph.D. in electrical engineering and computer science from MIT, and a B.S. in electrical engineering from the University of Illinois, Urbana-Champaign.