After hitting a two-year low of 239 deals in December 2015, early-stage US tech deals (seed/angel, Series A) bounced back in January 2016 to 275. However, dollars (-12%) and deals (-8%) dropped once again in February.
Looking specifically at US tech seed deals, February was the top month for median deal sizes in the past two years, at $1.9M. In general, the data shows that US tech early-stage deals have been increasing in size over the last two years.
February 2016: $710M invested across 253 deals
Early-stage deals in February dropped 8% from the previous month while funding fell by 12%, as previously mentioned. In year-over-year terms, there were seven less deals in February than in February 2015, but funding was was down by 9%.
Though the numbers in February 2016 were higher than in November and December, it was still below the average monthly funding number in the last 24 months, which was $736M. Some of the top deals this month included Series A rounds raised by biomedical data analytics company Seven Bridges ($45M) and wireless services company Federated Wireless ($22M).
Median deals size drops $0.7M from January
Though the average deal size dropped from $5.3M in January to $4.5M in February, it was still higher than the monthly average deal size of any other month in the past two years. Early-stage includes seed/angel and Series A rounds.
Seed deal size reaches two-year high
After a steady decline since October 2015, median seed deal size was up an impressive 58% from January, reaching $1.9M. More than 15 companies — including marketing technology company Amperity, mobile and software services company Flyp and healthcare data startup Vitagene — raised $3M+ seed rounds in February, compared to just 5 in January.
Series A deal size uptick in 2016
After declining in Q4’15, median Series A deal sizes rose in January and February. The average Series A deal size also bounced back this year, surpassing Q4’15 numbers.
Mobile deals bounce back in February
Internet deals continued to dominate in February. Mobile and telecom deal share, which reached a two-year low of 18% in January 2016, bounced back in February to 24%.
Deal share in the consumer products & services sector was higher in January compared to previous months, but dropped once again in February by 3 percentage points.
Mobile dollar share drops by half from 2015-16
Internet startups continued to account for the highest share of dollars in February — consistent with the trend in the last two years.
Mobile sector dollar share has remained constant over the last 3 months at 20%, down by more than half compared to January 2015, when they hit 42%.
Largest early-stage tech deals
The previously-mentioned Series A round to Seven Bridges was the largest US early-stage tech deal in February. The round came from Kryssen Capital.
|4||Lantern||Health & Wellness||$17|
|5||AfterSchool||Conferencing & Communication||$16|
|8||Centage Corporation||Accounting & Finance||$14|
Most active early-stage investors
Felicis Ventures and New Enterprise Associates were the most active early-stage investors in February. The former participated in Series A rounds raised by companies including those to ThirdLove, Siftery, and Diffbot. The latter seed-funded ClearMetal and Paysa and participated in Series A rounds raised by ThirdLove and Nimble Collective.
|1||Felicis Ventures||8||Amplify Partners|
|1||New Enterprise Associates||8||Aspect Ventures|
|3||Accomplice||8||Lightspeed Venture Partners|
|3||Hyde Park Venture Partners||8||Norwest Venture Partners|
|3||.406 Ventures||8||Expansion VC|
|3||SV Angel||8||TDF Ventures|
|8||First Round Capital||8||Maveron|
Early stage US tech companies with highest momentum
We used CB Insights Mosaic algorithm to identify 20 early-stage companies with the highest momentum scores — a measure of a company’s traction based on social and news mentions, web traffic and jobs data, among other factors.
|Rank||Company||Select Investors in Feb|
|1||Login to CB Insights||Login to CB Insights|
|2||Login to CB Insights||Login to CB Insights|
|3||Login to CB Insights||Login to CB Insights|
|4||Diffbot||Amplify Partners, Felicis Ventures, Tencent and Valor Capital Management|
|6||Vive||CrunchFund, Deep Fork Capital, Expansion VC, Haystack Fund, Kosinski Ventures, Ludlow Ventures, Maveron, SB Projects, T5 Capital, Vayner RSE and Y Combinator|
|7||zyBooks||Bialla Venture Partners|
|8||GOQii||Edelweiss Financial Services|
|9||ChatBooks||BYU Cougar Capital, Kickstart Seed Fund, Peterson Ventures, Signal Peak Ventures|
|10||Gorgias||Amplify Partners, CRV, Kima Ventures|
|11||Power Supply Collective||Upfront Ventures|
|12||Petcube||Almaz Capital Partners, AVentures Capital, Y Combinator|
|13||Zentera Systems||AltoTech Ventures|
|14||ThirdLove||Felicis Ventures, New Enterprise Associates, TomorrowVentures|
|15||Zendrive||BMW i Ventures, First Round Capital, Fontinalis Partners, Nyca Partners, Sherpa Capital, Thomvest Ventures|
|16||Rainforest||Bessemer Venture Partners, Rincon Venture Partners|
|17||TAO Connect||Florida Angel Nexus, Florida Funders, New World Angels|
|19||Centage Corporation||Northgate Capital, TVC Capital|
|19||Pipefy||HBS Alumni Angels Association|
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