Happy 2010: Bay State Startups Ring in the New Year with $355M in January Venture Funding

2/11/10Follow @xconomy

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the highest number of deals at nine (and still almost doubled its December dollar total of $66.5 million). The biggest venture healthcare deal went to the aforementioned Alnara. Bedford-based MicroCHIPS, a developer of wireless medical implants containing chemical sensors or drug reservoirs, also landed in the top five overall with a $16.5 million equity round.

A few other trends we spotted, as well as the complete list of January venture finance deals follows:

— Funding for energy companies continued to heat up in January, when the sector pulled in $31.2 million across three deals (taking third place for dollar totals and tying for third in number of deals). That’s more than three times the venture dollars the sector raised in December, and more than 10 times its November dollar numbers. An energy company even took the third-highest deal spot, thanks to the $23.8 million in a combination of equity and warrants raised by Konarka Technologies, a developer of polymer photovoltaic products that convert light to energy.

— While the healthcare, software, and energy sectors rose sharply in venture financing in January, the equity attracted by companies in the electronics, Internet, and mobile and telecommunication sectors all fell from their December numbers. In January, two electronics startups raised $4.2 million, a mere fraction of the $40.9 million that five electronics companies pulled in the month before. Venture investing in the mobile and telecommunications sector also shrunk in January, with the $1.2 million raised by Cambridge-based Thinking Phone Networks representing the sole equity deal for the sector last month. As a result, it took last place in both dollars and deals. (We have a hunch things will pick up in March, which has been named Mobile Month in Massachusetts!)

— Funding is continuing to prove turbulent for Internet startups. In January, the sector raised a total of $7.1 million across three deals, putting it in fifth place for the month. By contrast, Internet startups took in $40.7 million in December across nine deals. We thought at the time that December marked a comeback for Internet startups after they raised just $11.25 million across three deals in November, but last month indicates that the sector might be on more of a roller coaster than a steady incline.

January Venture Deals by Company

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