CB Insights: Frontier technology sectors received $1.3 billion in investment in Q1 2016

199IT original compilation

In the first quarter of 2016, there were 72 investment transactions in the frontier technology field with a total investment of US$1.3 billion, making it the second largest quarter for frontier technology investment in terms of both transaction volume and investment amount.

Cutting-edge technology startups, including augmented and virtual reality, aviation, and drones, received $3.5 billion in funding in 2015 across 254 deals.

Virtual reality and augmented reality investments surged in the first quarter, but drone investments were relatively weak.

Annual Investment History

2014 was a year of huge growth in investment in cutting-edge technology companies, and 2015 saw an even greater leap, with 254 deals receiving nearly $3.5 billion in investment, an increase of 118% in investment and 97% in transaction volume over the previous year.

The largest deals in 2015 were in the aerospace sector, with SpaceX receiving $1 billion in Series D funding, OneWeb receiving $500 million, and O3B Networks receiving $460 million in Series H funding.

Quarterly Investment History

After four consecutive quarters of investments exceeding $600 million, investment fell to $368 million in the third quarter of 2015. However, investment in cutting-edge technology rose again to $879 million in the fourth quarter of 2015, and then to $1.3 billion in the first quarter of 2016.

In the first quarter of 2016, 72 deals raised $1.3 billion, making it the second-highest quarter for frontier technology investment, both in terms of deal volume and investment amount. Investment amount increased by 44% from the previous quarter, while deal volume decreased by 9% from the previous quarter.

The most notable rounds in the first quarter were $794 million in Series C funding for augmented reality helmet maker Magic Leap, $100 million in funding for growth display and virtual reality maker MindMaze, and $62 million in Series D funding for satellite maker Kymeta.

Investment by Region

Frontier technology startups are concentrated in the US market, so the region has become the largest region for frontier technology investment, with 70% of investment transactions in the frontier technology field being participated by US startups since 2011. The second largest market is the UK, but it only accounts for 5%.

Breaking down the number of frontier tech investment deals in the U.S., 54% took place in California. Two aerospace companies, Blue Origin and Kymeta, are located in Washington, so the region accounts for 7% of investment activity in the U.S. Florida, New York, and Manchester each account for 5%.

Most active frontier technology investor

199IT.com Originally compiled from: CB Insights. Please do not reprint without authorization