Q3 2015 VentureDeal Quarterly Venture Capital Report
Internet - Digital Media - ECommerce - Software
During the third quarter of 2015, 540 companies in the Internet, Digital Media, eCommerce and Software sectors raised $8.5 billion in venture capital funding in the aggregate, a decrease of 14% in total funding amounts versus Q2 2015 and a 10% decrease in the number of companies funded.
Internet
Internet sector company fundings continued their previous quarterly decrease by registering a 27% reduction in dollar volume. The sector received $3.3 billion in venture capital funding during the quarter allocated among 195 companies – a decrease in the number of companies funded of 5% vs. Q2 2015.
A large syndicate of investors including Major League Baseball funded online fantasy sports site DraftKings to the tune of $300 million. The timing of the investment was not fortuitous, as subsequently the New York State Atty. General declared DraftKings to be an illegal betting organization. The case is currently in progress.
Internet Funding History - to 3rd Quarter 2015
Digital Media
Digital Media funding continued its previous quarterly result of aggregate funding increases. Digital Media companies for the purposes of VentureDeal's definition are generally either video/casual game developers or online advertising networks. Total funding increased quarter over quarter by 20% to $1.16 billion, with 82 companies being funded, a decrease of 17% in companies funded versus the previous quarter.
Washington, DC-based Vox Media raised the largest funding round of the sector during the period, receiving $200 million from strategic investor NBC Universal. Vox is developing a suite of digital publishing outlets and said that its sports brand, SB Nation, alone boasts over 300 sports communities with an audience of more than 25 million unique visitors per month. The valuation of the investment was reported to be at $850 million.
In the native advertising space, AdsNative received $8.5 million in Series A equity capital from investors including Japanese Internet and Ecommerce company Rakuten. The company said it would use the new capital to support the launch of its enterprise platform that integrates ad serving technology within the framework of a publisher's existing content management system.
Digital Media Funding History - to 3rd Quarter 2015
ECommerce
The ECommerce sector experienced decreased quarterly funding activity, with 23 companies receiving a total of $354 million in funding, representing a 13% decrease in financing amounts versus the previous quarter’s tally.
Dallas, Texas-based Ziosk netted $100 million in its latest funding round from CapX Partners. The company said the funds would be “used to support agreements with Olive Garden and other restaurant brands to deploy its tablets across the US.”
At the seed stage, ClassWallet netted $1.9 million in equity investment from venture capital and strategic investors. ClassWallet provides a more efficient way for class teachers to receive and spend monies for student supplies. The company said it would use the funding to fuel its sales initiatives and accelerate product development.
ECommerce Funding History - to 3rd Quarter 2015
Software
Software company fundings represented the largest sector of the grouping, raising $3.7 billion between 240 companies. This activity represented a quarterly decrease of 8% in total funding amounts and an 11% decrease in the number of companies funded.
Palantir Technologies raised $450 million in equity capital during the quarter, according to an SEC regulatory filing. Palantir provides enterprises and government agencies with its information analysis and management platform. The company has raised at least $1.5 billion since its inception.
At the seed stage, Boulder, Colorado-based SlamData landed $3.6 million from investors led by True Ventures. SlamData said it would use the proceeds to enhance the visual analytics and enterprise capabilities of its system that analyzes NoSQL data development.
Software Funding History - to 3rd Quarter 2015
Table 1
Venture Capital Funding - 3rd Quarter 2015
| Industry |
Total
Disclosed Funding |
% Change
Vs. Prior
Quarter |
Number of
Companies Funded |
% Change vs. Prior Quarter |
Internet |
$3.3 billion |
- 27 % |
195 |
- 5 % |
Digital Media |
$1.16 billion |
+ 20 % |
82 |
- 17 % |
ECommerce |
$354 million |
- 13 % |
23 |
- 11 % |
Software |
$3.7 billion |
- 8 % |
240 |
- 11 % |
Total |
$8.5 billion |
- 14 % |
540 |
- 10 % |
This material has been prepared and issued by VentureDeal. The information contained herein is based on current information that VentureDeal considers reliable, but we make no representation that it is accurate in the future or complete, and it should not be relied upon as such. It is provided with the understanding that VentureDeal is not acting in a fiduciary capacity.