Washington’s venture capital scene hit a five quarter high on deals and dollars in Q3 2010 as the state ranked fifth on both deals and dollars in the quarter that just passed. Last week, we’d highlighted the strength of Texas’ venture capital landscape as it exceeded New York’s in Q3. On a venture capital dollars basis, Washington rivaled New York as well (and is more diverse than NY’s venture capital scene).
The state doesn’t get as much attention as the Big 3 (California, Massachusetts and New York) but has been a stalwart of the venture capital scene for a while. And after a deals lowpoint in Q3 2009, the state has rebounded nicely with Q3 2010 coming in at a five quarter high. Venture capital funding also hit its highest level in five quarters in Q3 2010.
Washington’s venture capital scene is typically dominated by funding and deals into a handful of key cities. The top cities for venture capital in the state are Seattle, Bellevue, Redmond with Bothell and Kirkland also regularly surfacing as destinations for venture capital.
As previously mentioned, Washington’s sectors for venture capital investment are led by healthcare and internet investments, but the state also sees funding and deals in the energy & utilities, mobile and software (non-internet/mobile) sectors as can be seen below.
Washington has also seen increased seed venture capital activity and has a healthy distribution of deals across stages of investment as illustrated below suggesting that companies in the area are able to raise money across various stages of maturity.