22 Jan VC Investments in DFW Fell 47% During 2010
According to a Dallas Morning News Article, VC funding decreased by approximately $230 million in North Texas, while venture capital investments rose both nationwide and in Texas during 2010.
Based on comments by John Jaggers of Dallas-based Sevin Rosen Funds, this drop is due to a lack of attractive growth companies of similar scope and potential as Groupon, a Chicago-based company which just raised almost $1 billion and is rumored to be preparing for an IPO sometime later this year or early next year.
Even with this significant decline, North Texas still represented almost 25% of all VC funding in Texas last year.
It seems that DFW firms just aren’t looking to invest in early stage companies, which goes against a national trend that saw increases in Seed and Series A rounds last year. The industries that received the most funding in DFW were biotech, telecom and health services.