Most young technology companies in the Boston area that raise seed rounds of funding have local investors involved in the round — nearly 70 percent of them, in fact, according to new data from CB Insights.
It suggests Massachusetts startups are not suffering from a lack of local early-stage investor support, CB Insights said in a blog post.
The finding is based on seed-round investment data for 2010 to 2013 — a total of 227 deals, of which 154 had Massachusetts-based investors taking part.
It also dovetails with our report from March that showed Massachusetts venture capital firms are keeping more of their deal-making local.
Other interesting findings from the CB Insights data:
• The top seed investors in Boston during 2010-2013 by number of deals were CommonAngels (37 deals), Atlas Venture (30, according to CB Insights / 64, according to the firm — see update below), LaunchCapital (21), Boston Harbor Angels (13), and Boston Seed Capital (13).
• They were followed by Google Ventures (12), General Catalyst Partners (12), NextView Ventures (11), 500 Startups (11), Clean Energy Venture Group (10), and Polaris Partners (10).
• Silicon Valley investors took part in one-fourth of the Boston seed deals from 2010-2013, while New York-based investors participated in 14 percent of the deals.
• Internet startups led the way on Boston seed deals, with 52 percent of the deals between 2012-2013. That was down from 55 percent in 2010-2011.
Whether Boston startups enjoy a healthy amount of support from local investors once they are ready for Series A funding, that’s up for debate. According to the VCs at Kepha Partners, at least, there are only about 15 check writers left in Boston for tech Series A rounds.
Update: Atlas Venture sent over its own figures for its seed investing activity, showing that the Cambridge-based firm did a total of 64 seed deals with Massachusetts-based companies from 2010-2013. The breakdown by year:
- 2013 – 30
- 2012 – 17
- 2011 – 10
- 2010 – 7
An Atlas spokesman also said the firm has done eight seed deals with Massachusetts-based companies so far in 2014.
Bean seeds germination in soil image via Shutterstock.