February 9, 2015
Built In Austin released today the 2014 Annual Austin Digital Startup Report highlighting the growth in Austin’s digital tech sector. Austin digital tech companies had a record-breaking year in 2014, raising a total of $993 million in investments and over $437 million in acquisitions.
More investors have invested in Austin digital technology companies in 2014, funding 115 startups and buying up to 31. What’s more, those funding totals increased 123 percent from 2013, according to a comparison between data provided by Built in Austin and historical data from Thomson Reuters.
“To be a successful tech entrepreneur, do you have to be in Northern California? No,” said chief marketing officer for venture capital firm MicroVentures Paul O’Brien to Built In Austin, who moved his family from the San Francisco Bay area. “We are attracting a lot more talent and a lot more interest from professionals who are helping accelerate things.”
The report also highlighted the top industries to get investments in 2014: financial technology, Cloud computing, e-commerce, consumer web, healthcare, and advertising technology companies. Those industries are mostly business-to-business, which is in line with Austin’s historical record of success with enterprise software.
The past year saw many funding examples in Austin: BigCommerce, an e-commerce platform, which raised $50 million; Davincian Healthcare, a healthcare analytics company, which raised $50 million; Magnitude, an enterprise information management software company, raised $100 million; and Mozido, a mobile bill pay platform, which raised $185 million.
Part of building a strong startup community is having a sizable number of successful exits – having so attracts investors and builds reputation. Several notable exits included Shipstation, a SaaS shipment process platform company, which sold for $76 million; RenewData, a legal analysis platform, sold for $70 million; and Upland, a work management software company, which sold for $46 million.
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