The last few months have felt especially busy with financings, but I dismissed the thought until I saw the Council for Entrepreneurial Developmen
t's (CED) updated Innovators Report
The latest data validate what my gut was telling me in September. I’ve parsed the data for you in a quick rundown of what you need to know.
A Hot Take on The Numbers
By any objective measure, July through the end of September were prime time to close deals before the fall scurry toward Q4 madness. CED reports that 59 North Carolina companies raised more than $175 million through 62 equity financings.
That’s a close rate of about one every 34 hours for the duration of the quarter.
The new funds bring the year-to-date total to more $600 million and some change, well above 2014’s total and trending toward a year might not be as good as 2015, or “another strong year for raising capital” as CED President and CEO Joan Seifert Rose says.
The state is living up to its branding as a source of dealflow in bio, software, and medical technology: tech and life science account for 77 percent of the deals (48 of the 62). Life science companies pulled in the largest chunk of the overall cash this quarter.
The handful of advanced manufacturing and materials deals and just two reported cleantech deals raise interesting questions about how these verticals will develop in the state. (We’re keeping an eye on them and will tell you what we find.)
Across all industries, 52 deals fell below the $5 million mark. Further, 32 of which were less than $1 million in size. Taken together, these data points begin to reinforce the theme of early-stage prospecting by local and national players.
Speaking of, out of state institutions investing in NC companies continue to outnumber NC-based funders. 29 institutional investors from outside NC participated in rounds, including 9 international funders versus 13 local investors. With more local funds investing more prolifically (cough, Full Tilt Capital
, cough), I'll be watching for alterations to this trend.
Last, but not least, Q3 2016 was a heck of a time for an exit. Q3 saw the 10 listed below.
So there you have it, a a quick take on the latest CED data.