Venture capital investing in Austin companies fell in the third quarter, but activity in the internet sector remained strong.
A total of $151 million was raised by 20 companies during the quarter, according to a survey by PricewaterhouseCoopers and CB Insights.
That’s a 55 percent decline from the second quarter, when 45 companies received $332.3 million.
“A quarter doesn’t tell the whole story, but it feels like things have flattened out a little bit,” said John Cummins, a partner at PricewaterhouseCoopers office in Austin. “It’s a little more pronounced in Texas, but Silicon Valley saw it too.”
Texas saw a 65 percent decline in investment dollars from the prior quarter to $282.8 million. In Silicon Valley, activity fell 46 percent this quarter to $2.2 billion.
Nationwide, activity was flat from the second quarter, with $19 billion going to 1,207 deals.
In Austin, internet companies received the most money, with 12 companies raising $92 million.
The largest Austin deal of the quarter was in the internet sector: The Zebra, which lets consumers compare car insurance rates online, raised $40 million in a deal led by Silicon Valley-based Accel Partners.
The company said it will use the new money to expand product functionality, ramp up marketing efforts, add new lines of insurance and expand its 75-person workforce.
The investment slowdown in the third quarter affected Austin companies of all stages. Expansion stage companies received the majority of money, with $105 million invested in seven deals. But all stages of development -- from seed stage to later stage -- experienced a decrease in investment funding.
The top 10 Austin deals in the third quarter:
The Zebra, platform for car insurance rate comparison, $40 million
Favor, on-demand delivery service, $22 million
Mighty Swell Cocktail, sparkling fruit juice cocktails, $12.9 million
Continuum Analytics, big data analytics platform, $10 million
Outdoor Voices, active wear for women and men, $9 million
Convey, rate comparison engine for shipping freight, $8.25 million
Mangstor, flash-based solid state drives for enterprise applications, $7 million
Dosh, cash back app for consumers, $7 million
LVL Technologies, wearable fitness tracker, $6.75 million
TrustRadius, review site for business technology, $5.5 million
Source: The MoneyTree Report from PricewaterhouseCoopers and CB Insights