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The top VC investors in Texas since 2010

As SXSW approaches, we take a look at venture capital deals for Texas-based companies and the most active investors cutting the checks since the start of 2010.

Everything is bigger in Texas, as the old saying goes. This maxim, however, has yet to fully apply to the world of venture capital in the Lone Star State, which will be propelled into the headlines as the commanding SXSW Conference in Austin kicks off on March 8.

Texas is currently in a transition powered by high-tech investments that lie in contrast to the slow-paced cattle ranches spread throughout the rural areas of the country’s 28th state. Partly as a result of the relatively new tech scene, Texas was home to three of the 10 fastest-growing cities in the United States in 2018, according to Forbes.

The state’s growing venture ecosystem has been in the news beyond the scope of SXSW’s imminent arrival. Austin-based ATX Seed Ventures is reportedly raising $100 million for its third Texas-centric venture fund as of February 27. Since the start of 2010, the technology-focused firm has completed 34 VC deals in Texas-based companies, ranking as the 14th most active investment for startups headquartered in the Lone Star State, per the PitchBook Platform. Houston Angel Network boasts the largest portfolio with 145 completed deals, followed closely by Central Texas Angel Network with 144 investments and Capital Factory with 97.

The amount of venture capital raised annually for Texas-based companies previously peaked in 2013 with $2.83 billion spread across 536 deals, per PitchBook data. After a gradual descent down to $1.96 billion raised across 474 deals in 2017, a record-breaking $3.11 billion was raised in 2018. The deal count, by contrast, was much smaller than in the 2013 peak, with only 461 struck last year, signaling larger fundraises for fewer companies.

Texas may be the second-most populous state, but it ranked fourth in terms of market share for VC investments, capturing only 3.43% of all completed deals nationwide since 2010. This falls behind Massachusetts with 9.85%, New York with 10.63% and perennial leader California with 52.06%.

Analyzing the state’s share of VC deals, there have been three nine-figure investments since the start of last year. Dallas-based cancer drugmaker Peloton Therapeutics raised $150 million at a $500 million in mid-February. The largest deal during this time period went to Austin-based home buying platform Bungalo, which completed a $250 million Series A led by Amherst Holdings in last September.

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    Written by Ian Agar

    Ian Agar was a financial writer at PitchBook covering venture capital.

    A native of Southern California, he joined the US Coast Guard and received his BA in Psychology from American Military University. After leaving the military, he was a writer for SeekingAlpha for over six years covering blue-chip stocks and fast-growing small-cap companies. Although studying charts and financial reports excite him, his wife is his real passion in life—especially when they both spend time studying charts and financial reports together.

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