Filled with innovation labs, co-working areas and college students, Boston has a ton of entrepreneurial traits baked into its DNA.
However, when the coronavirus swept by way of the nation, the world’s startup scene was stress-tested as badly as different entrepreneurial hubs. Could Boston’s startups nonetheless thrive with out town’s sturdy in-person ecosystems?
Last month, we answered this query broadly: Boston-area startups raised $3.7 billion in Q2, in accordance with CB insights, a determine we hailed as “report enterprise capital funding within the interval.”
But whereas high-level, quarterly information is beneficial directionally, it may well gloss over illustrative dips and peaks. In 2020, issues modified quick.
So, for this month’s Boston-focused column, we regarded on the metropolis’s enterprise capital information on a month-by-month foundation to reply the query, “How did the pandemic affect deal-making within the metropolis?”
New PitchBook information present that Boston-area startups noticed a enterprise capital dip after March by way of April, two early pandemic months right here within the United States. However, May and the next months greater than made up for the decline. In truth, Boston-area startups raised extra personal capital throughout summer season 2020 than they did in summer season 2019, suggesting that the pandemic and its ensuing technological and financial modifications haven’t damage the world startups in combination, however as a substitute supplied a web boon.
Inside Boston’s turbulent enterprise capital summer season
Let’s begin with a have a look at the info in chart kind. We requested PitchBook for a have a look at Boston’s enterprise outcomes on a month-to-month foundation since 2019.
Looking at personal capital information for Boston-based firms, we see that December was a really sturdy month in comparison with the remainder of This autumn 2019, however that it was additionally simply bested by January. February and March have been extra quiet, main us into the pandemic period. But surprisingly, April wasn’t a whole mess with greater than $1 billion in funds invested. May posted a pointy enchancment in greenback phrases, and June was better of all months within the yr to date.