The Series A Story in Boston Tech: $270M Invested in Past Year
For all the talk of a Series A crunch and the limited number of Boston venture capitalists investing in A rounds for local tech companies, we saw at least three relevant deals this week:
—Coherent Path, a retail analytics startup based in Cambridge, MA, has raised a $6.25 million Series A round led by Sigma Prime Ventures and GrandBanks Capital.
—SmashFly Technologies, a Concord, MA-based recruitment marketing firm, has closed a $9 million A round led by OpenView Venture Partners.
—Whoop, a wearable healthtech startup (formerly known as Bobo Analytics), has raised $6 million, according to an SEC filing. Jeff Fagnan of Atlas Venture is listed as a director. (This may not be a classic “A” round, since the company raised $3 million-plus last year, led by Atlas, but it warrants mentioning.)
This made me wonder: what does the past year look like for Series A deals in Boston? I browsed through our stories and VentureDeal listings, as well as outside reports, to compile a list of what I thought would be a couple dozen deals, tops.
To my surprise, I found nearly 40 Series A investments over $2 million in local tech companies since June 2013. Granted, most were fairly small. Most were led (or co-led) by Boston-area VC firms, but not all. Most are companies that sit outside the echo chamber of popular blogs and media. Very few are consumer focused—no surprise there—and quite a few have to do with enterprises, analytics, cloud data, networking, marketing, hardware, and security.
Here are the local tech Series A deals over $2 million that I found over the last year, starting with the most recent:
Coherent Path, $6.25M
Whoop (fka Bobo Analytics), $6M
CloudHealth, $3.2M add-on
Layer3 TV, $21M
Optio Labs, $10M
WeSpire (fka Practically Green), $3M
Clypd Books, $7.2M
Evolv Technologies, $11.8M
Objective Logistics, $5.3M
Isabella Products, $9.2M
Content Raven, $2M
BitSight Technologies, $24M
That adds up to $270 million-plus invested in 39 deals. Let me know if I missed any, or if any don’t belong on the list. It’s not a huge number—relative to the $3 billion invested in all Massachusetts companies in 2013—but it belies the perception that Series A deals aren’t happening in Boston tech.
So, perhaps the real funding bottleneck is at the Series B and C stage. We’ll get to that later.