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Houston companies raised $389.6 million in venture capital (VC) funding in Q4/21, up from $92.0 million in Q4/20, according to a Partnership analysis of PitchBook data. For the four quarters ending in Q4/21, Houston companies raised a record high $2.02 billion—a near tripling of VC funding over the prior year.
Both investment volumes and deal counts are up compared to pre-pandemic totals. For the four quarters ending in Q4/21, Houston companies closed 219 VC deals, up 26.6 percent from 173 deals the prior year.
The average deal size was $11.6 million during the most recent four-quarter period, up from $5.5 million the year before. Several large, growth stage deals contributed to the jump in funding. The three largest deals of the past year (Solugen, HighRadius, and Lancium) account for over $800 million in VC funding.
On an industry basis, information technology raised $632.1 million in the four quarters ending in Q4/21, up 190 percent from $217.9 million during the prior four-quarter period. Healthcare raised $518.4 million, up 65 percent from the prior period. Materials and resources raised $426.5 million, up 628 percent largely on account of the $357 million Solugen deal. Business products and services (B2B) are up 745 percent, largely due to the $98 million Cart.com deal. Energy is up 78 percent, and financial services are up 90 percent from the previous 4-quarter period. However, consumer products and services (B2C) are down 64 percent.
Prepared by Greater Houston Partnership Research
Roel Gabe Martinez, GISP, CERP
Venture Capital raised by Houston startups for the 4-qtrs ending Q4/21