Report: R.I. VC deals total $11.7M in 4Q, $23.7M in 2016

JEFFREY FLATH, president and CEO, eNow, is shown with a light-weight, plastic, solar panel. The Warwick company was one of five Rhode Island firms to receive venture funding in the fourth quarter, according to the MoneyTree Report from PricewaterhouseCoopers LLP and CB Insights. / PBN FILE PHOTO/NATALJA KENT
JEFFREY FLATH, president and CEO, eNow, is shown with a light-weight, plastic, solar panel. The Warwick company was one of five Rhode Island firms to receive venture funding in the fourth quarter, according to the MoneyTree Report from PricewaterhouseCoopers LLP and CB Insights. / PBN FILE PHOTO/NATALJA KENT

PROVIDENCE – A total of $11.7 million was invested in Rhode Island venture capital-backed companies in the fourth quarter, bringing the total investment for the year to $23.7 million.

That’s higher than the $13.1 million that was invested in Rhode Island VC-backed companies in 2015, according to the MoneyTree Report from PricewaterhouseCoopers LLP and CB Insights released Wednesday.

The report said Rhode Island had five deals in the fourth quarter, and a total of 14 for the year, which was double the number of deals in 2015.

The following companies received funding in the fourth quarter, according to the report:

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  • Splitwise, an early-stage internet software and services firm in Providence that received $5,030,000 from Bullpen Capital. Splitwise is described as a free tool for friends and roommates to track expenses so everyone is paid on time.
  • NanoSteel, a Providence manufacturer that develops steel alloys, received $2.5 million from undisclosed investors.
  • eNow, an early-stage renewable energy company in Warwick that focuses on commercial trucking, RV and marine industries, received $2.36 million from the Slater Technology Fund and Tamiami Angel Investors.
  • Luna Pharmaceuticals, also known as Premama, makes a line of natural powdered drink mixes and soft chews to support maternity wellness. Based in Providence, it received $1.82 million from undisclosed investors.
  • Luca + Danni, a seed-stage jewelry company in Cranston, received an undisclosed amount in funding, with the investor listed only as PJC.

Massachusetts, in comparison, had 97 deals in the fourth quarter, totaling $1.27 billion. California led the nation in the fourth quarter in deals and investment at 395 and $5 billion.

In sector terms, VC-backed internet companies remained the top sector for investor dollars in the fourth quarter, despite total funding dropping 26 percent from the previous quarter. Funding to the mobile & telecom sector rose 19 percent, and mobile bumped out health care (which fell 43 percent) for the second-place sector by deal value.

Nationally, 2016’s funding total of $58.6 billion represented a 20 percent drop from 2015, while cumulative deals fell 16 percent to 4,520.

“Despite continued deceleration in venture capital investment activity, the startup ecosystem remains flush with quality deals,” Tom Ciccolella, U.S. venture capital leader at PwC, said in a statement. “As industries continue to be disrupted by technology and internet capabilities, new opportunities are emerging. It’s these opportunities, despite the decline, that continue to drive venture capital momentum.”

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