One year has made a big difference in terms of funding for tech startups as unicorn worship has given way to cockroach austerity. While tech ecosystems don’t seem to be heading for a collapse along the lines of 2000, the money isn’t flowing like it was in mid-2015.
Funding for U.S. startups in this year’s first quarter fell 25 percent from the fourth quarter of 2015 to $13.9 billion, the largest quarterly decline on record since the dot-com bust, according to (warning: paywall) data from Dow Jones VentureSource. The numbers of Q1 deals hit a four-year low of 884.
Also in the first quarter, the median value of U.S. startups plummeted to $18.5 million after hitting a peak of $61.5 million in last year’s third quarter, according to the same report. Comparable data aren’t available for Canada, but the trend is clear.
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Still, the weak patch doesn’t mean the well has gone dry. Here are some of the most-read stories of the past month about funding for Canadian startups:
Vancouver’s Bench Raises $20 Million Series B Round
You might well use Bench for in your own organization, so this is good news for the future. Ian Crosby, CEO of Bench, says that the Series B funding will remove constraints and allow them to “undergo rapid employee growth.”
Thirdshelf Moves Out Of Stealth Mode After Raising $800,000, partnering with Lightspeed
Meanwhile, you’ve probably already used ThirdShelf without realizing it. ThirdShelf’s USP is that they allow independent retailers to retain their own customer data, rather than making them partner or share their lists. If you want a glimpse of the future of the checkout line, the article also talks about ThirdShelf’s work with developing bots that can gauge how and when to engage each customer.
With New Seed Funding, Hockeystick Looks To Compete With CB Insights For Startup Data
More than just the latest contender for ‘most Canadian startup name ever’, Hockeystick helps link startups with their investors, enabling a free flow of financial data. This interview with Raymond Luk, the company’s founder, shows how startups need to get over with their hesitance to share, and the advantage Hockeystick has over competitors that rely on surveys alone.
24 Canadian Startups Raised $152 Million in April
Lastly, here’s a list of hard data. Startups from Vancouver to the Maritimes (that’s PEI and Fredericton in there) are pulling in a good deal of angel and venture capital. Topping the list is Etobicoke-based Flipp at $61 million, who create digital versions of flyers and in their well-rated app.
Frequently Asked Questions
How much did US startup funding fall in early 2016?
According to Dow Jones VentureSource, funding for US startups in the first quarter of 2016 fell 25 percent from the previous quarter to $13.9 billion, the largest quarterly decline since the dot-com bust. Deals hit a four-year low of 884.
What happened to the median value of US startups in 2016?
The median value of US startups dropped to $18.5 million in the first quarter of 2016, down from a peak of $61.5 million in the third quarter of 2015, according to the same VentureSource data.
What did Bench plan to do with its Series B funding?
Vancouver's Bench raised a $20 million Series B round in 2016. CEO Ian Crosby said the funding would remove constraints and allow the company to undergo rapid employee growth.
What makes ThirdShelf different for retailers?
ThirdShelf, which raised $800,000 and partnered with Lightspeed in 2016, lets independent retailers keep their own customer data rather than partnering or sharing their lists. It was also developing bots to gauge how and when to engage each customer.
How much did Canadian startups raise in April 2016?
Twenty-four Canadian startups raised $152 million in April 2016, from Vancouver to the Maritimes. Etobicoke-based Flipp, which makes digital versions of flyers, topped the list at $61 million.