Bay State Startup Funding Bubbles Up to $564.7 Million in June
The summer heat wave has begun. No, I’m not talking about the weather—I’m referencing the $564.7 million that Massachusetts startups raised in 38 equity-based financings in June.
Fundraising remained steady across April and May at around $306 million, and then took off last month with a couple of triple-digit-million deals, according to data provided by FundingFlash, a daily roundup of companies receiving venture capital, angel investment, and growth equity funding, provided by our data partner CB Insights.
Healthcare has frequently been the sector with the top deal over these past few months. Not the case in June. Boston-based e-commerce company CSN Stores led the June charge with a $165 million deal—its first ever outside financing. CSN owns more than 200 websites that sell home goods and has been profitable almost since it started in 2002, Xconomy Boston editor Gregory Huang wrote in a profile of the company a couple of months before its massive Series A round.
The CSN investment wasn’t enough for the Internet sector to nab the top spot for the month, though. Web companies came in second for dollars raised, at $181.1 million in 10 deals. The top sector victory belongs yet again to healthcare, which nabbed just shy of $250 million across a dozen deals. That’s about a 36 percent jump from the $183.5 million healthcare companies raised in May as the top sector. The biggest investment in a healthcare company in June went to Tesaro, a Waltham, MA-based firm that’s aiming to scoop up cancer drugs developed by other biotechs and further them through clinical development.
The third-highest deal in June came in the energy sector, which as a whole placed third as well for dollars raised ($57.7 million in four deals). Newton, MA-based General Compression led energy companies last month with $54.5 million raised in a Series B financing. We wrote about the first $20.4 million of that round, which the energy storage technology developer took in early in the month.
Read below for the full list of deals that added up to whopping $564.7 million last month.
Massachusetts startups raised another $2.2 million in debt-based funding in June; read the table below for the scoop.