We had a feeling that it was going to be a blockbuster quarter on the venture capital front in Washington state as companies such as Donuts, Kona Medical, Avalara and SEOMoz reeled in big rounds. The money certainly was flowing in the second quarter with $312 million invested in 32 companies, more than double the $132 million that was invested for the same period last year, according to a report by CB Insights.
Of course, one very large deal catapulted the state forward. In June, domain name registrar Donuts Inc. announced more than $100 million in funding from Austin Ventures, Adams Street Partners, Emergence Capital, TL Ventures and Generation Partners. Nonetheless, the region needs the big whopper deals, along with the smaller seed stage deals if it wants to continue to grow its tech ecosystem.
California remains the number one market for venture capital, with investments increasing to $4.6 billion. Massachusetts saw its share shrink, dropping to $768 million while New York startups pulled in $500 million. Texas, the other major state tracked by CB Insights, saw a significant decline as $157 million was invested in the state.
Overall, venture capital investments increased to $8.1 billion during the second quarter, with CB Insights calling it the “the biggest quarter for venture capital in over a decade.”
Here’s a look at where the money was flowing in Washington state.