RESEARCH TRIANGLE PARK – The third of three major venture capital reports confirms that the first quarter was big for North Carolina and US-based entrepreneurial companies.
Dow Jones released their quarterly VentureSource Report on Thursday and like both the Pitchbook-NVCA Venture Monitor Report and the PwC-CB Insights MoneyTree Report, it reports a record increase in venture capital investments to companies nationwide.
The VentureSource Report shows U.S. based companies raised $25.7 billion in 1Q 2018 and North Carolina based companies raised $419.98 million.
NVCA’s data also showed North Carolina funding topped $400 million – a five-yearh igh of $431 million.
Different criteria means different findings for each report, however.
Dow Jones tracks equity financing in venture-backed companies, and for the first quarter, they included growth equity deals equity (meaning they have a minority stake investment in a privately owned, mature company that meets specific criteria from Dow Jones) in their data release. For a deal to be included in the Dow Jones data, the person or company raising the funds needs to have raised at least one round of institutional funding in the past.
Similar in many ways to the other two reports, the VentureSource Report has two main differences. First, it digs deeper into industry trends than the other two reports, and second it provides more data on state-level data than the other reports do.
According to the VentureSource Report, healthcare companies led the quarter and accounted for 27 percent of the total investments with $6.85 billion raised over 250 deals. Business and financial services companies came in second, with $5.89 billion across 321 deals. Information Technology companies raised the third largest amount with $5.32 billion raised across 377 deals.
Dow Jones VentureSource Q1 2018 data
The VentureSource Report breaks data down regionally and by states too. Although it lacks data for at least 13 states depending on the metric. Of those that reported data, with $419.98 raised, North Carolina ranks 11th in terms of capital raised. Regionally, the Southeast—the region in which North Carolina is included—ranks 4th behind the Northern California, Mid-Atlantic, Southeastern California, and New England.
To understand the full picture, we compiled data on total fundraises from all three reports at the national and state level to compare the reports. The following charts show the different figures reported by all three sources.
Comparing venture capital reports
Comparing NC VC data
