Investors Find MA Startups Worthy of $355 Million

You don’t need to consult an economist to know that we are in the midst of a recession. Although stories of hardship and unemployment are easy to come by, one bright note is Massachusetts’ tech and life sciences startups, who received over $355 million this January in venture funding.

This funding was split between twenty-eight equity deals, according to research firm CB Insights. While $355 million is a staggering number in itself, it is even more impressive when you consider this amount is 273% more than the amount of funding Massachusetts startups in the industry received in December of 2009.

Southborough, MA-based software company IkaSystems nearly accounted for the $130 million December-to-January increase in funding in itself, receiving $120 million from a single deal. The largest venture capital deal in the life sciences industry, at $35 million, went to Cambridge, MA-based Alnara Pharmaceuticals.

(image courtesy of: www.xconomy.com)

Electronics, Internet, and telecommunications, all saw a decrease in funding in their sectors as compared to December. The internet sector, for example, raised only $7.1 million in January from three deals, which is a decrease of 82% from the $40.7 million the sector received from nine deals in December.

So, while all industries in Massachusetts did not benefit as much as tech and life sciences in January, investment money is clearly still pouring into the state, proving that even in a weakened economy deserving businesses will be given a chance to grow.

For more information, visit: http://www.xconomy.com/boston/2010/02/11/happy-2010-bay-state-startups-ring-in-the-new-year-with-355m-in-january-venture-funding/