Massachusetts Startup Fundraising Tallied $145M in June—Early Stage Venture Holds Its Own

Xconomy Boston — 

Led by the Bay State’s strong healthcare sector, Massachusetts startups attracted just over $145 million in investment in June. That’s the tally from our new partner, ChubbyBrain, a New York-based information services company developing tools for investors, startups, and aspiring entrepreneurs.

Health care companies—spanning drug development, medical devices, and consumer health and wellness—were the focus of 9 of the 17 deals done during the month. But the investment activity ran the gamut from telecommunications and semiconductors to social media and online marketing.

June 2009 MA fundraising dealsLeading the pack in terms of dollars raised was Cambridge-based biopharmaceutical company Aileron Therapeutics, which pulled in $40 million in a Series D round led by GlaxoSmithKline and Excel Medical Ventures. But that still left more than $100 million for the remaining 16 deals spotted by ChubbyBrain, 14 of which were, like Aileron, venture investments, and two of which involved debt financing. Notably, with all the recent talk (including at the Xconomy Summit on Innovation, Technology, and Entrepreneurship) about early stage deals going by the wayside, 6 of the 15 venture financings were Series A rounds.

The complete June deals list is below. But here are a few other observations from the ChubbyBrain data:

—The most active area venture firm was Polaris Venture Partners of Waltham, MA, which took part in a trio of deals. Flagship Ventures, the Massachusetts Technology Development Corporation, and Baird Venture Partners were in two deals apiece.

—Of the 9 healthcare deals, four involved medical device companies.

—Not a single deal involved cleantech or energy. That is consistent with a nationwide falloff in cleantech investment in the first quarter noted by the National Venture Capital Association.

Massachusetts Startup Fundraising in June

MA startup fundraising in June 2009

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3 responses to “Massachusetts Startup Fundraising Tallied $145M in June—Early Stage Venture Holds Its Own”

  1. Very good news- people need to get a grip on the reality that business is still getting done, investments are still happening. Thanks for the great article.

    Having just finished Tufte’s book on Visualizing Quantitative Information, I couldn’t help but comment on the graphic. It could be more informative if the “height” of the slice of pie corresponded to the average deal size. This is important in comparing deals, and making the otherwise “3-d” dimension of height meaningful would help for future versions.

    =Drew Hession-Kunz
    Entrepreneur and Teacher
    Boston College- VC and Business Creation
    i-Nalysis – Founder and President

  2. Thanks for the note and great suggestion, Drew. We appreciate it!