Data: PitchBook; Chart: Axios Visuals
Northwest Arkansas companies got a big goose egg in terms of venture capital during the second quarter, according to PitchBook data shared with us.
Why it matters: Capital investment provides resources to startups and young companies to help them grow.
Investments signal confidence in the area's entrepreneurial community — a measure of perceived economic health.
The big picture: Startup funding was up in the U.S. overall, but the number of deals were down for the quarter, Axios' Dan Primack writes .
- Large-sum deals for a relative few AI companies have skewed the data.
What they're saying: "My big takeaway is that the venture market continues to be pressured and it's going to continue for a while," Nizar Tarhuni, PitchBook's VP of institutional research and editorial, told Primack.
- "We're seeing VCs deploy less capital, making it harder to raise new money, and then there's less money to deploy."
By the numbers: PitchBook reported 16 deals in the NWA metro area during 2023.
- Only one deal was reported for the first quarter of 2024, valued at $13.5 million.
- Along with NWA, Little Rock saw no deals for the second quarter, while Tulsa had just one, valued at $3 million.
Yes, but: Investment is still happening, even if it's not from the private sector.
Between the lines: Though Tulsa is almost two hours away, you may remember an agreement between former Gov. Asa Hutchinson and Oklahoma Gov. Kevin Stitt to collaborate on transportation systems.
The bottom line: Meanwhile, venture capital firm UP.Partners is raising $230 million for its second fund targeting mobility startups.
The caveat: I've pointed out before that PitchBook's data can lag a quarter — and occasionally, deals are counted twice and corrected later.
- I wouldn't rely on the data to build a Leica SL3 , but it's directionally right over time.
📊 The Shift is a regular feature to catch up quick on what's happening in Arkansas' economy and entrepreneurial ecosystem.
Comments / 0