Washington Startups Bring in $51.7M in September, Healthcare, Internet, and Software Sectors Lead in Deals

10/28/10

Every month we take some time to look at the deals Washington tech and biotech companies inked in the month prior, and compare them to recent trends. Unlike our weekly investment deals roundups, these monthly features give us the opportunity to look back through both the large investment that made big headlines when they broke, as well as the smaller “under the radar” deals that may have gone unnoticed. As October comes to a close (can you believe it’s gone by this fast?), it’s time to take a look at the tech and biotech deals Washington companies closed in September. As always, the information is based on data provided by our partner, New York-based private company intelligence firm CB Insights, and our own past coverage.

Since we first started these monthly deals roundups back in June, the healthcare sector has been the dominant deal-maker, hands down, bringing in $41.1 million in June, $62.5 million in July, $21.8 million in August, and serving as the bulk of Washington’s startup financing over any other sector each month.

In September, the healthcare sector was still the top contender for financing, bringing in $17 million. But much like in August, the Internet and software sectors came in second and third in September, bringing in $13.6 million, and $12 million respectively.

Computer hardware and services startups came in fourth, with $8 million in financing, and the mobile and telecommunications sector trailed behind for the bottom rank, with just $1.1 million in deals.

Chubby Sept. 2010 WA

Some of the more notable deals from September include Bothell, WA-based business software company Winshuttle’s $12 million financing from Summit Partners, which singlehandedly carried the software sector to the top of the financing list in September. Others include DataSphere Technologies’ $10 million Series C, led by Kirkland, WA-based OVP Venture Partners, MOD Systems $6 million Series B (which the company inked despite a rather public indictment of its co-founder Mark Phillips), and Stratos Genomics’ $4 million Series A for low-cost DNA sequencing.

One big deal somewhat surprisingly squeaked by our coverage: Pathway Medical Technologies raised $10 million in equity, according to a regulatory filing, and somehow we missed it. Seattle-based video optimization company Opanga Networks raised $600,000, as did Bellevue, WA-based cloud-based IT services startup, Doyenz, both of which flew under our radar.

Here’s the full list of September’s equity-based deals, both under the radar and on it:

Chubby Chart Sept. 2010 WA

Thea Chard is a correspondent for Xconomy Seattle. You can e-mail her at theachard@gmail.com or follow her on Twitter at http://twitter.com/theachard. Follow @

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