Venture capital funding of technology companies based in the state of Texas for the five-year period of 2010 through 2014 has shown a marked and almost unbroken annual increase.
The sheer breadth of industries represented - 35 in total - is a testament to the diverse technology base of one of the largest states in the country.
Texas prides itself on being "business friendly" and the numbers support this thesis. Even though the number of venture capital firms based in the state is relatively low, companies located there have no trouble securing venture capital for their development and growth initiatives.
The future looks no less bright as long as capital remains unconstrained and seeking returns commensurate with the risk.
Investments by Industry
From Advanced Materials to Wireless technology companies, the Lone Star State accounted for 35 separate industries out of 41 industries that VentureDeal tracks. All major industry groups, such as Software/Internet, Bio/Pharma/Medical Devices, Telecom/Wireless/Networking/Semiconductors, Energy/Alternative Energy/Clean Tech were well represented.
Investments by Year
Starting with 2010, a year in which Texas-based companies received $1.14 billion, was an almost unbroken line of annual increases, capping with 2014 at $1.96 billion in aggregate funding. The only down year, 2012 at $1.17 billion, represented only a $50 million decrease from the previous year.
Investments by Round
Series A and Series B investment rounds accounted for the majority of disclosed rounds, which is consistent with national trends. If the "Undisclosed" category were allocated to other rounds, it is likely that these numbers would increase accordingly.
Investments by Amount
The Transaction Distribution chart below shows the preponderance of funding rounds at or below $15 million each. However, dozens of rounds were sized at $20 million or above.
Investments by City
The high-tech hotspot of Austin unsurprisingly accounted for 501 transactions during the five-year period, out of a total of 929 deals. Houston came in second with 100 transactions, followed by Dallas with 55, San Antonio with 43 and Plano with 41 transactions.