The Rhode Less Traveled: Small State Making Big Moves
December 11, 2013
Rhode Island isn’t exactly the first state that comes to mind when you think of venture capital, but VC activity in the region has been on the rise in recent years, with the number of deals completed each year increasing since 2009. In total, VC investors have completed 146 deals involving companies headquartered in Rhode Island, according to the PitchBook Platform.
After a slow but steady increase in total capital invested in the state each year between 2002 ($51 million invested) and 2006 ($95 million), there was a crash in 2007 ($6 million invested). The two years that followed saw modest climbs in VC coin invested, but it wasn’t until 2010 that the state’s venture scene really started to pick up again. The year accounted for more capital invested ($67 million) than the previous three years combined ($47 million) and more deals completed (12) than any single year up until that point.
2012 was a banner year for The Ocean State, setting the high-water mark for both capital invested ($119 million) and deals completed (16). This year is on a great pace, already reaching 14 completed deals (the second most in a single year for the state) and $85 million invested (third most).