Orange County Business Journal

OC Venture Capital Funding Up in Q3

Jane Yu Tuesday, October 22, 2013

Orange County-based businesses received $188.1 million in venture capital money in the third quarter, a 31% increase from the same time a year ago.

The total went to 13 companies, compared with eight in the year-earlier period, according to a report from Dow Jones VentureSource.

OC’s business-support services sector accounted for more than 70% of the total investment dollars, driven by a $93 million investment into Aliso Viejo-based Telogis Inc. late September. Telogis makes navigation software that’s used by companies with large fleets of trucks.

The funding round, led by Menlo Park-based Kleiner Perkins Caufield & Byers, was the largest deal recorded last quarter and so far this year.

Companies in the information-technology sector drew a total of $32.6 million, including a $19 million infusion into Greenwave Holdings Inc. in Irvine. Greenwave provides home energy management services.

Biosynthetic Technologies LLC in Irvine was the sole energy and utility company that received venture funding last quarter, with a total of $9 million.

The healthcare sector drew $7.5 million, down from previous quarters that averaged about $81 million.

The third-quarter total of roughly $188 million was the highest since 2009, discounting the outsized effects of the investments in 2011 for struggling Anaheim-based luxury automaker Fisker Automotive Inc., which has ceased day-to-day operations.

Fisker accounted for an estimated $700 million in funding throughout the first three quarters of 2011. It raised an additional $104 million in 2012.

Venture funding for OC companies through the first nine months of this year totaled $483.8 million, up nearly 42% year over year.

Nationwide, third-quarter investments totaled $8.12 billion, up 4% year over year. The total for the first three quarters in 2013 was $23.13 billion, down about 5% from the same period last year.