Reports

Q1 2016 VentureDeal Quarterly Venture Capital Report

Internet - Digital Media - ECommerce - Software

 

During the first quarter of 2016, 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 Q3 2015 and a 10% decrease in the number of companies funded.

 

Internet

 

Internet sector company fundings continued their previous quarterly decrease by registering a 36% reduction in dollar volume. The sector received $2.1 billion in venture capital funding during the quarter, allocated among 178 companies – a decrease in the number of companies funded by 9% vs. Q3 2015.

Virginia-based Snagajob raised a growth round of $100 million from venture capital and private equity investors. The company operates a website and service that is dedicated to part time and full-time hourly oriented employment opportunities. Snagajob said that it would use the proceeds to expand its product offerings and fund select acquisitions.

 

Internet Funding History - to 1st Quarter 2016

 

Digital Media

 

Digital Media funding reversed 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 decreased by 37% to $736 million, with 98 companies being funded, an increase of 20% in companies funded versus Q3 2015.

New York-based Moat raised one of the largest funding rounds of the sector during the period, receiving $50 million from growth stage investor Insight Venture Partners. Moat has developed the capability to provide display advertisers with intelligence on how users are interacting with their display ads and where they move their mouse pointers over the ads. The company said it planned to double staff in 2016 and continue to build out its technology offerings.

In the video space, Replay Technologies received $13.5 million in Series B equity capital from corporate investor Deutsche Telekom Strategic Investments. The company said it would use the new capital to support its expansion into more sporting events and other types of live entertainment. Replay was subsequently acquired for an undisclosed sum by Intel.

 

Digital Media Funding History - to 1st Quarter 2016

 

 

ECommerce

 

The ECommerce sector experienced increased quarterly funding activity, with 33 companies receiving a total of $611 million in funding, representing a 73% increase in financing amounts versus Q3 2015’s tally.

Boston, Massachusetts-based Toast netted $30 million in its Series B funding round from Bessemer Venture Partners, strategic investor Google Capital and others. The company has developed what it calls an “easy to use restaurant POS system with 24/7 phone and email support.” It said the funds would be “used for hiring talent, updating products and marketing.”

At the seed stage, Palo Alto, California-based Salesfloor netted $3 million in equity investment from venture capital and strategic investors led by Canada-based BDC Capital. Salesfloor has developed tools to connect sales associates with shoppers online and in-store. The company said it would use the funding to “penetrate global markets and expand product development for new features and industry-specific modules.”

 

ECommerce Funding History - to 1st Quarter 2016

 

 

Software

 

Software company fundings represented the largest sector of the grouping, raising $3.4 billion between 255 companies. This activity represented a quarterly decrease of 11% in total funding amounts but a 6% increase in the number of companies funded.

American Fork, Utah-based Domo raised $131 million in equity capital during the quarter from late stage private equity firms. Domo provides business intelligence visualization dashboards to enterprises that simplify large data sets and promises to improve decision-making. Proceeds purposes from the financing were not disclosed by the company.

At the seed stage, RevUp landed $5 million from a large syndicate of investors Including Greylock Partners (Reid Hoffman) and other venture capital and corporate investors. The academic and non-profit software developer said it would use the funding to grow its “engineering, data analysis and sales teams in order to further expand into the academic and nonprofit areas.”



Software Funding History - to 1st Quarter 2016

 

 

Table 1

Venture Capital Funding - 1st Quarter 2016

 

Industry

Total

Disclosed Funding

% Change

Vs. Prior

Quarter

Number of

Companies Funded

% Change vs. Prior Quarter

Internet

$2.1 billion

- 36 %

178

- 9 %

Digital Media

$736 million

- 37 %

98

+ 20 %

ECommerce

$611 million

+ 73 %

33

+ 43 %

Software

$3.4 billion

- 11 %

255

+ 6 %

Total

$6.8 billion

- 20 %

564

+ 4 %





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.

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