February 17, 2017
The venture capital flow into San Diego is slowing, according to the latest research from PwC/CB Insights MoneyTree Report and Mattermark. Total VC investment in the market was $209 million in Q4 2016, down 35% from Q3 2016, and 55% lower than what was reported in Q4 2015. Twenty-one deals closed in Q4, well below the quarterly average of 53 transactions.
CBRE notes it is the lowest quarter for VC investment in San Diego since Q4 2010, and investment volume was well below the quarterly average (since 2013) of $376 million. VC investment was lower nationwide as well, with Q4 having the lowest investment numbers for total US investment since Q4 2013.
Other findings from CBRE’s San Diego capital recap include:
- Life Science/Healthcare investment led all industry types with $112 million in investments, a slight decrease (-8%) from Q3 2016, and much lower (-65%) than Q4 2015. Big deals include Astute Medical, ($43 million) and Genalyte, ($36 million)
- Internet investment was next highest industry type with seven deals totaling $55 million. This was lower than the four-quarter average. The largest deal was $30-million investment in Classy, a software company that offers an online platform for fundraising campaigns.
For comments, questions or concerns, please contact Dennis Kaiser