San Diego Startups Raise Over $300M From VCs in Second Quarter

7/20/12Follow @bvbigelow

[Corrected 7/20/12, 10:55 am. See below.] It wasn’t the best of times for venture capital activity in San Diego. But it wasn’t the worst of times, either.

Venture capital firms invested $304.8 million in 27 startups during the three months that ended June 30, according to regional data released as part of the MoneyTree Report on nationwide VC activity. PricewaterhouseCoopers prepares the report with help from the National Venture Capital Association, based on data from Thomson Reuters. (A list of the quarter’s top 10 deals is below.)

The amount of capital invested during the second quarter represented a 20 percent increase over the second quarter of 2011, when VCs invested $253 million in startups throughout San Diego County. But it was a 17 percent decline from the previous quarter, when VCs put $369.2 million into local startups.

In comparison with the previous quarter, the 27 deals completed during the second quarter was better than the first quarter, when venture firms invested in just 25 local startups. But it was down from the 33 deals counted during the second quarter of 2011.

More than half of the 27 deals (15) involved life sciences startups (biotechnology and medical devices and equipment. The next largest category was software, with five companies raising venture capital, according to the report.

San Diego ranked fifth in comparison with venture investing in other regions during the quarter. The breakdown:

San Franscisco Bay Area: $3.2 billion in 226 companies

New England: $843.2 million in 106 companies

New York Metro: $567.9 million in 82 companies

Los Angeles/Orange County: (counted as one region): $532.6 million in 64 companies.

A list of San Diego’s top 10 deals, including the venture investors, is here:

Sangart: $50.7 million; undisclosed investor. (Leucadia National (NYSE: LUK) has been Sangart’s sole investor since the company was founded)

SmartDrive Systems: $47 million; New Enterprise Associates, Oak Investment Partners, Stanford University.

Astute Medical: $40.5 million; De Novo Ventures, Delphi Ventures, Domain Associates, Johnson & Johnson Development Corp.; Kaiser Permanente Ventures, MPM Capital.

Global Analytics: $25 million; Crosslink Capital, Leapfrog Ventures, Mohr Davidow Ventures, and two undisclosed investors.

[Corrected to show Nirvanix raised over $25 million, sted $15.2] Nirvanix: $25 million; Intel Capital, Khosla Ventures, Mission Ventures, Valhalla Partners, Windward Ventures.

ecoATM: $17 million; Claremont Creek Ventures, Moore Venture Partners, Tao Venture Partners, and three undisclosed investors.

Obalon Therapeutics: 16.5 million; Domain Associates, InterWest Partners, Okapi Venture Capital, undisclosed investor.

AwarePoint: $14 million; Avalon Ventures, Cardinal Partners, Heritage Group, JAFCO Ventures, Kleiner Perkins Caufield & Byers, New Leaf Venture Partners, Top Tier Capital Partners, Venrock Associates

RT Oncology Services: $11.4 million; Essex Woodlands Health Ventures, Oak Hill Capital Management, undisclosed investor.BioNano Genomics: $10 million; Battelle Ventures, Domain Associates, undisclosed investor.

Bruce V. Bigelow is the editor of Xconomy San Diego. You can e-mail him at bbigelow@xconomy.com or call (619) 669-8788 Follow @bvbigelow

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