FoodMaven secured another $500,000 in venture capital during the third quarter, the only such funding received by a Colorado Springs business during a period when investments in startups declined in Colorado and nationwide, according to a quarterly report.
The online surplus food marketplace has received all but $500,000 of the $15 million local startups have landed this year. FoodMaven officials weren’t available for comment on the latest investment but said the previous $14 million was for “ongoing support,” acquisitions and to develop technology.
Although local startups have secured funding in six of the past seven quarters, the $15 million raised so far this year is a fraction of the $206 million that Springs businesses received in the first three quarters of last year, according to the MoneyTree Report from PricewaterhouseCoopers and CB Insights.
Last year’s total included the largest local venture capital investment in the city’s history — $172 million — in Cherwell Software from private equity giant KKR.
The drop in local venture funding mirrored declines in such investments statewide and nationwide from last year’s near-record totals, both in the third quarter and year to date.
Colorado venture investments in the July-to-September period fell 33.5% from a year ago to $321 million and were down 21.8% in the first three quarters of the year to $1.09 billion.
Nearly a third of the total this year went to two Denver startups — cybersecurity provider Ping Identity and restaurant operator Punch Bowl Social.
Nationwide venture funding totaled $25.9 billion in the third quarter, down 12.2% from a year earlier and the lowest quarterly total since the second quarter of last year. The third-quarter total included 55 deals totaling more than $100 million, including $1 billion to San Francisco-based OpenAI, $875 million to New York-based Authentic Brands and $700 million to California-based Radiology Partners.
Despite the weaker third quarter, venture funding for the first three quarters of the year remains 6.2% ahead of the same period last year at $82.6 billion.
“Although deal value and volume in the U.S. dropped from the previous quarter, Q3 2019 still represents the fifth highest quarterly deal value this century,” said Tom Ciccolella, U.C. venture capital leader for PricewaterhouseCoopers.