Venture capital funding in Florida soared in the second quarter of 2013, thanks
to large investments in two Miami-based companies.
According to findings of the MoneyTree Report from PricewaterhouseCoopers and
the National Venture Capital Association released on Friday, investment in the
state totaled $155.8 million, up from just $11.29 million in the first quarter
and the highest amount recorded in the survey since the third quarter of 2007.
Florida’s total was powered by the $65 million Series D round in Open English —
the 7th largest investment in the country — and the $20 million round in
CareCloud, the top two investments in the state.
Nationally, venture capitalists invested $6.7 billion in 913 deals in the
second quarter, according to the report, based on data provided by Thomson
Reuters. Quarterly venture capital investment activity rose 12 percent in terms
of dollars and 2 percent in the number of deals compared to the first quarter
A few second-quarter national highlights from the survey:
• The software industry received the most funding, despite dropping 7
percent from the prior quarter to $2.1 billion, marking the fifth consecutive
quarter of more than $2 billion invested in the sector.
• Biotechnology was the second largest sector for dollars invested with
$1.3 billion going into 103 deals, rising 41 percent in dollars and 4 percent
in deals from the prior quarter. Of the deals, 71 were in medical devices, an
area of strength in South Florida.
• Early-stage investments rose to their highest level in six quarters, up
63 percent in dollars and 18 percent in deals to $2.5 billion going into 480
deals. The average early-stage deal was $5.2 million, up significantly from
$3.7 million in the prior quarter.
• First-time venture capital increased 24 percent to $1.1 billion going
into 302 companies, a 10 percent increase in the number of deals from the prior
quarter. First-time financings, particularly software companies, accounted for
17 percent of all dollars and 33 percent of all deals in the second quarter.
“In many ways it feels like the late 1990s with information technology driving
venture investment and significantly outpacing other sectors when it comes to
level of activity and momentum,” said Mark Heesen, NVCA president. “The
difference, however, is where we go from here. There will be no tech bubble. IT
investing will continue to be the bedrock of the venture industry — but at
sustainable levels. Life sciences investment is poised for a slow and steady
recovery, provided we can continue to see progress on the regulatory front.”
According to the survey, 14 Florida companies received venture capital in the
second quarter, up from six in the first quarter and the highest number in more
than two years. In addition to Open English, an online language school marching
across Latin America and beyond, and CareCloud, a fast-growing software and services
provider for the healthcare industry, the other South Florida company funded
was Contactus.com of Miami, which received $400,000. Other Florida companies
that were funded were Kony Solutions, Tower Cloud, Applied Genetics
Technologies, Informed Medical Decision, Treehouse Island, XOS Digital, Zentila, SiteWit, Health
Integrated, Fracture and Unikey Technologies.