VC Deal Flow in Kentucky Staying Steady; Capital Invested Declining
February 10, 2014
Kentucky isn't exactly the first state that comes to mind when you think of venture capital, but believe it or not, VC investors have actually completed a fair amount of deals in the state. Since the beginning of 2009, VC investors have backed 32 Kentucky-based companies, encompassing 49 deals, according to the PitchBook Platform.
The state's healthcare industry has accounted for the largest portion of capital invested in that timeframe (41%), with information technology (28%) and energy (20%) being the next strongest. Though the number of deals completed each year has stayed pretty consistent in recent years, with the exception of a bump in 2012, capital invested each year in Kentucky has plummeted, falling from $104 million in 2009 to $12 million in 2013—a decrease of nearly 90%. With almost $5 million in capital invested so far this year, 2014 has gotten off to a strong start and just may break the declining trend.