Austin and Startup Funding in the News
Two articles recently covered Austin startup funding.
“A total of 99 Austin-area deals received $740 million last year, according to a survey by PricewaterhouseCoopers and the National Venture Capital Association. That’s a 20 percent increase from 2014, when 114 companies collected $615 million.”
Most of the fundraising apparently went to “expansion-stage” companies over the last year. Of course, Silicon Valley dominated the equation with $27B raised. But how did Austin compare in Texas?
In Texas, Austin was by far the largest venture capital recipient in 2015. Dallas was next, with companies receiving $214.4 million, followed by Houston, which received $160 million.
- $946M in funding (they may have used a different methodology, perhaps including non-VC rounds). They’re numbers show this as a slight decrease over 2014.
- $3.92B in exits (companies that sold) across 44 exits… Although I think $3.9B of that was HomeAway selling to Expedia.
So when you have articles like that, then you get rankings like being one of the top ten cities for young entrepreneurs.
And it is no mystery why Forbes calls Austin one of America’s next boom towns when there is this kind of capital formation and company formation going on in Austin.
Austin leads the pack in terms of population growth, up 13.2% between 2010 and 2014, in large part driven by the strongest rate of net domestic in-migration of the 53 largest metropolitan areas over the same span: 16.4 per 1,000 residents. The educated proportion of its population between 25 and 44 is 43.7%, well ahead of the national average of 33.6%, although somewhat below the traditional “brain center” cities of the Northeast and the West Coast.
And yet with all this noise going on, I’d just say that this is a good time to be building a business, and Austin is a good place to live and work. Sometimes it starts out as simple as that.