Venture capital funding for Massachusetts startups fell to its lowest level since 2019 in the first quarter, according to a new report.
Data firm Pitchbook and the National Venture Capital Association said Wednesday that 169 startups raised a total of $3.1 billion in the first three months of this year, compared to the same period in 2023. %Diminished. This was the lowest amount raised in a quarter since the startup raised $2.7 billion in the fourth quarter of 2019.
Since peaking at the end of 2021, funding for startups has fallen sharply as interest rates rise and investor enthusiasm for tech companies declines. The collapse of cryptocurrency exchange FTX two years ago also surprised investors. Overall funding in 2023 decreased by 26% compared to 2022 to $16 billion.
The largest local deals in the first quarter included Westboro battery recycler Ascend Elements for $700 million, Waltham biotech company Sionna Therapeutics for $182 million, and Cambridge for $182 million, according to Pitchbook and NVCA. cancer-focused biotech Fog Pharma has raised $145 million.
Local venture capital firms also lagged behind, raising only $285 million in the first quarter. The Massachusetts-based VC firm raised $6 billion last year, Pitchbook and NVCA reported.
Aaron Pressman can be reached at aaron.pressman@globe.com.follow him @Ampressman.
