Texas Entrepreneurial Ecosystem

The Role of Venture Capital in Driving Innovation

Quick Stats
TX venture activity in 2016:
From 2012-2016, and received $11.3 billion
1,584 TX-based startups 443 companies Ranks 4th in U.S.
to fund their innovative ideas and raised
raised venture funding grow their businesses Ranks 4th in U.S.
$2 billion

Which sectors are receiving venture funding in Texas?

Venture Investment ($M) by Sector
$3,000

$2,581 $2,550
$2,500
$2,295
$169 $99

$365 $1,989 Materials and Resources

$2,000
$1,820 $432 $777 $151 Financial Services
$236
$ Millions

$246 Energy
$168
$1,500 Business Products and Services (B2B)
$318 $223 $305
$527
$529 Consumer Products and Services (B2C)
$121
$407 Healthcare
$422
$1,000 Information Technology
$576
TX Annual Total VC $
$1,125
$500 $1,011
$901 $853
$594

$0
2012 2013 2014 2015 2016

146 software investments 77 TX-based healthcare startups Beverages & food products
attracted $690M in VC $ last raised $422M in venture funding accounted for the largest share
year, 35% of overall 2016 VC $ in in 2016, led by $250M raised for of B2C VC $ in 2016, $61M or
the state pharma & biotech companies 20%

Startups in Texas
Largest 2016 Venture Investments
Current No. of Investment
Company Location Sector Industry Group Industry Code Employees Size ($M)
StackPath Dallas, TX Information Technology Software Network Management Software 300 $180

MorningStar Partners Fort Worth, TX Energy Energy Services Other Energy Services N/A $70

Pivot3 Austin, TX Information Technology IT Services Systems and Information Management 235 $56

Peloton Therapeutics Dallas, TX Healthcare Pharmaceuticals and Biotechnology Drug Discovery 29 $52

Spredfast Austin, TX Business Products and Services (B2B) Commercial Services Media and Information Services (B2B) 500 $50

Xeris Pharmaceuticals Austin, TX Healthcare Pharmaceuticals and Biotechnology Pharmaceuticals 16 $45

Esperance Pharmaceuticals Houston, TX Healthcare Pharmaceuticals and Biotechnology Pharmaceuticals 11 $40

M-Files Dallas, TX Information Technology IT Services Systems and Information Management 226 $38

Verts Mediterranean Grill Austin, TX Consumer Products and Services (B2C) Restaurants, Hotels and Leisure Restaurants and Bars 300 $36

Lumos Pharma Austin, TX Healthcare Pharmaceuticals and Biotechnology Drug Discovery 11 $34

For more information: contact Jeff Farrah 202.864.5927 jfarrah@nvca.org OR Justin Field 202.864.5929 jfield@nvca.org
Data source: Q4 PitchBook-NVCA Venture Monitor
Geographic Breakout of Startups Across Texas
Congressional District Analysis: Number of Companies Receiving Venture Funding in 2016, Venture Capital Amount Invested
Amt. Amt.
Congressional No. of Invested Congressional No. of Invested
District Companies ($M) District Companies ($M)
1 0 - 19 0 -
2 11 $13.3 20 5 $55.0
3 17 $28.9 21 81 $479.8
4 1 $2.5 22 6 $8.5
5 4 $1.5 23 8 $8.8
6 4 $28.9 24 30 $107.7
7 26 $87.2 25 29 $178.2
8 5 $3.1 26 8 $28.1
9 8 $22.7 27 1 $1.7
10 39 $173.8 28 0 -
11 2 $2.3 29 1 $0.2
12 8 $74.9 30 22 $279.7
13 0 - 31 10 $51.3
14 1 $0.1 32 22 $57.6
15 0 - 33 3 $27.1
16 0 - 34 0 -
17 6 $13.3 35 16 $70.4
18 15 $87.7 36 2 $15.4

Spotlight on Texas MSAs

Austin-Round Rock, TX MSA and Dallas-Fort Worth-
Arlington, TX MSA ranked 10th and 12th, respectively,
in the U.S. for number of startups receiving venture
funding in 2016
182 Austin MSA startups raised $977M in VC $ in 2016
138 DFW MSA startups raised $678M in VC $ last year

Exact district unknown for 49 companies that raised a total of $100M

Venture Firms Partnering with Startups in Texas

Sampling of Most Active Investors in Texas-based Startups