Louisiana Companies Raise Over $130 Million in Venture Capital in 2019, Louisiana Venture and Angel Capital Report Finds

April 1, 2020 (New Orleans, LA) – Cara Stone, LLP (“Cara Stone”) a leading capital markets law firm released the Louisiana Venture and Angel Capital Report (“Report”) showing that Louisiana companies raised over $130 Million in venture capital in 2019.

Louisiana companies raised over $130 million across 33 deals in 2019. The number of deals completed by Louisiana companies grew significantly compared to 2018, making one of the most active years for Louisiana venture capital since 2011.

Since the report was launched in 2011, Louisiana companies have raised over $860M in venture capital.

“Louisiana’s venture capital market has evolved tremendously over the last eight years,” said Mark Graffagnini, Managing Partner of Cara Stone. “The growth in the market reflects Louisiana companies’ determination and demonstrated success on a national scale. In turn, new investors have entered the market to provide the funding companies need to get to the next level.”

The Report, released April 1, 2020, examines several statistics related to venture capital funding in Louisiana including average and median deal size, corporate structure and industry analysis.

Sign up to get the Louisiana Venture and Angel Capital Report below

Cara Stone will host a virtual discussion on the Louisiana Venture Capital Report next Wednesday, April 8, at 11 AM CST. Register to attend here – http://eepurl.com/gAcxvz

REPORT HIGHLIGHTS

Companies in Louisiana raised over $130M across 33 deals in 2019. The total capital raised in 2019 declined by approximately $60 million from 2018. Louisiana companies raised more venture capital in 2018 than in any other year in our reporting period. Despite the decline in capital raised, the total capital raised in 2019 is significantly higher than the average capital raised in a given year over the reporting period ($96M).

Louisiana companies completed 33 rounds of venture capital financing in 2019, the second highest deal volume in our reporting period. Prior to 2019, deal volume had been steadily falling. However, the increase in deal volume in 2019 fits into a pattern of spikes in deals every 3 years. These spikes are likely caused by a combination of new companies entering the market, and established companies seeking bridge rounds.

Between 2011 and 2019, Louisiana companies raised over $862M in venture capital and completed a total of 224 deals. Mid-sized eco-systems across the country may be tempted to compare themselves to large markets where more data is available. Louisiana should resist this urge. Instead, Louisiana should look to other similar sized markets or slightly larger market to benchmark growth. Compared to other markets with similar population size, Louisiana remains a leader in entrepreneurship.

Leave a Reply

Your email address will not be published. Required fields are marked *