When startups raise money from investors for a stake in their company, filings must be made with the United States Securities & Exchange Commission.
At Fundz, we created a powerful database of newly funded startups that collects all this data & combines it with other relevant information, with the goal of creating one of the best startup databases for B2B Sales and lead generation. Our intuitive web app then makes it easy for anyone to quickly customize, search and export information from the database, plus save favorites and notes.
One of the benefits of having all of the information in one place is the ability to create insightful, startup funding reports on industries, locations, as well as the status of the overall startup funding environment in the U.S. (here are some startup funding database resources.)
The following is a comprehensive, interactive set of reports obtained from all non-investment fund related SEC Form D filings, between June 16, 2015 and May 5, 2017.
Hover over the map to see exact funding amounts according to each zip code.
With startup funding numbers running into the billions, New York, San Francisco, and Boston lead the pack. After these 3 cities we see a significant drop in fundings across all other cities.
Since California is home to Silicon Valley, it should come as no surprise that it takes the number one spot, however, you may be surprised at what other states round out the list.
For startups looking to secure funds where investors are, head to the startup juggernaut otherwise known as California.
In order to normalize for the inherent bias towards states with larger populations and big cities, we broke down the numbers and calculated startup funding per person in each state by dividing total money raised by the state’s population.
A logical hypothesis would be that states with more residents and densely populated cities would also have the most dollars raised per person. In general, the numbers prove this theory correct. The same states continue to dominate, but there are also some surprises, such as Colorado, Connecticut and Oklahoma.
Compare the popularity of technology startup funding (in blue) vs. non-tech startup fundings (in red) The size of the circle corresponds to the amount of funding raised. Hover over the circles for additional comparison details.
With just a quick glance, you can see that while tech startups dominate in some major cities, a large portion of the rest of the country is pursuing startup projects outside of the technology sector.
This graph highlights the fact that non-tech related startups are receiving billions of dollars more in investments.
Keep in mind that the comparison highlighted above is between tech companies and all other industries. Considering that fact, it is actually quite impressive that tech startups are commanding such a large portion of investment funds.
While non-tech companies may be receiving more funding dollars overall, the number of tech companies who are closing deals is higher.
As you can see, roughly 1,500 more deals have been sealed with tech related startups.
Take a look at which industries within technology are getting the most funding.
Compare the proportions of which industries are getting the most funding.
See a detailed graph that shows who is receiving the most funding and other important trends.
Click on an industry below!
Compare quarterly numbers from the last two years to find industry related trends.
When we first launched the the Fundz app and started collecting data, we assumed that we would see an impressive amount of funding going to tech related startups. While our assumption turned out to be correct, we were still amazed to see just how much money is being fed into recently funded startups in the technology category. We were also pleasantly surprised to learn just how much innovation is happening outside of what are considered traditional startup incubators.
The findings show that for entrepreneurs looking for the right place to put down roots and build their empire, location can be key. Certain cities are clearly more friendly to startups and provide access to support and resources, including funding. As you might imagine, Mountain View California, Boston and NYC rank among the biggest hubs for startups and provide the most funding, but that doesn’t mean they are the best choice for every company.
Based on two year’s worth of data, there are plenty of cities, both big and small, that offer opportunities for tech startup funding that may have been overlooked in the past. As significant funding continues to pour into tech startups, we are bound to see states like Virginia , Pennsylvania and New Jersey become bigger players on the tech landscape.
Taking a closer look as the numbers reveal several patterns that include:
For news organizations and publications looking to attract thought leaders and be at the forefront of reporting, this is exactly the kind of cutting-edge information and analysis that it takes to beat out the competition.
Fundz collects data from filings called SEC Form D filings. This page explains more on what these Form D filings are and when they must be filed.
Essentially, a Form D is a way to learn more about recently funded companies that have just raised money. Data from these forms are commonly used by the media to report on business funding news. Startups must file the form within 15 days of the first sale of securities of the offering.
Sometimes, for publicity reasons, the filing will occur after the press has already been notified. However, some companies want to keep their funding quiet, which makes Fundz a particularly valuable tool for staying on top of funding news. Before Fundz, the only way to uncover unpublicized funding was to scour the SEC.gov website. Not only is this a tedious and labor intensive process, you have to know what you are looking for in the first place.
Why do Form D's exist?
Instead filing a prospectus, along with detailed information and documents, every time a company raises money from investors for equity or debt, a Form D is used as a notice of exemption to offer securities for cash. This allows startups to avoid all the paperwork and processes public companies usually have to file when they issue securities.
It is important to note that about $900 billion of the annual $1.3 trillion in Form D filings represent pooled investment funds/hedge funds/private equity, etc raising more money. During our data analysis process, we filter out these filings and focus on startups, which are also referred to as “non-financial issuers.”
About $400 billion in funding is reported by non-financial issuers looking to raise money. In general, 40-50 companies file form D every day. With such a high volume of activity, Fundz provides a great lead source that leverages software to makes funding data more accessible, user friendly, searchable, exportable, etc.
A special thanks to the team for making this data visualization possible:
Our interactive visuals are designed to provide an easy way to interpret the data we have gathered. All of the information, including the graphics, are free to use. We grant permission to repost any images. In return, we ask that you provide fundz.net with the proper linking attribution so that readers can learn more about our project.