Investment Data for Missouri

Cara Stone, LLP ("Cara Stone") is pleased to present the Venture and Angel Capital Report (the "Report"), covering venture and angel capital activity in Missouri from 2011 to 2017.

The Venture and Angel Capital Report was started in Louisiana and quickly became the definitive analytical document gauging the health and activity of venture and angel deal activity in the state. Government departments, economic development groups, and legislative bodies responsible for incentivizing venture and angel deals use the Report to inform policy. Companies and investors use the Report to benchmark deal terms and investment strategies in deals.

Vibrant, high-growth companies continue to emerge from markets that are outside of the traditional coastal ecosystems. Until now, we believe there has been a lack of information on the venture capital landscape in these markets. This report was designed to give companies, investors, and policy makers insight into the deals taking place in their market, the natural clusters that are forming, and the trends that are emerging over time.

We invite you to click around to explore venture and angel capital trends below. We have also compiled in-depth findings such as average deal size by industry, industry clusters by city, incorporation data, deal terms, and more. Sign up here to receive our deep dive analysis.

We intend for this report to be a living, breathing document. In the coming weeks, we'll be updating the report with 2018 and 2019 data, adding new analytical posts and deal alerts, and announcing data for all 50 states. If you have any questions, want more in-depth information, or want to talk more about venture and angel capital deals near you, contact us here or join our email list here.

We’d love to hear from you.

Missouri Outlook

Venture Capital Totals

Deal volume and capital raised provide a snapshot of the overall health of an early stage capital market. Many other studies of venture and angel activity in a market rely only or heavily on self-survey data, which we believe is unreliable and underinclusive. Many financing rounds do not publicly disclose the total amount of the round or keep the total size indefinite. For this reason, we believe the amounts we report underestimate the total activity in a given year.

Both the number of companies raising money and the total capital raised in Missouri grew significantly from 2011 to 2017. In 2017, Missouri companies completed 111 deals and raised about $268M in venture and angel capital. This represents a significant increase from 2011 with the number of deals completed in the state more than doubling. As we'll explore below, Software as a Service (SaaS) companies and biotechnology companies have become more and more common in Missouri. The generally upward trend in deal volume and capital raised, indicate signs of a health ecosystem in Missouri and shows that maturing, high growth companies are succeeding and could be on track for substantial growth and exits.

Read more about Missouri's deal volume and capital trends.

Average and Median Deal Size

Average and median deal size in any given market provides a key metric for companies and service providers in the angel/VC world. These numbers help inform how much money a company can seek to raise in a market. Cara Stone believes that companies can better craft fundraising strategy with this type of data by better matching capital "asks" to the market in question.

Average and median deal size in Missouri has remained relatively consistent over time. Average deal size grew between 2012 and 2015, and fell slightly in 2016. Average deal size in 2016 and 2017 only varied by about 100K. Median deal size in Missouri also remained relatively consistent from 2012 to 2017. The consistency in the average and median deal size may indicate that companies are able to find funding at multiple levels of investment rather than capital only flowing to a couple of companies at the top. Overall, this is a positive metric in an ecosystem.

Get in-depth analysis on average and median deal size including average and median deal size by industry and city.

Average and Median Deal Size

Average and median deal size in any given market provides a key metric for companies and service providers in the angel/VC world. These numbers help inform how much money a company can seek to raise in a market. Cara Stone believes that companies can better craft fundraising strategy with this type of data by better matching capital "asks" to the market in question.

Average and median deal size in Missouri has remained relatively consistent over time. Average deal size grew between 2012 and 2015, and fell slightly in 2016. Average deal size in 2016 and 2017 only varied by about 100K. Median deal size in Missouri also remained relatively consistent from 2012 to 2017. The consistency in the average and median deal size may indicate that companies are able to find funding at multiple levels of investment rather than capital only flowing to a couple of companies at the top. Overall, this is a positive metric in an ecosystem.

Get in-depth analysis on average and median deal size including average and median deal size by industry and city.

Deals by Entity Type

Investor preferences for corporations in angel and venture capital deals appear in most markets. Analysis of investor preferences in any market for corporations vs. LLCs should factor into a company's overall financing strategy.

In the majority of years we examined in this report, the number of deals done by corporations exceeded the number of deals done by LLCs. Nationally, corporations tend to be the preferred entity type compared to LLCs by institutional angel and venture capital investors. In most years we examined, the total capital raised by LLCs was similar to or exceeded the total capital raised by corporations. However, there is a decisively upward trend in the total capital raised by corporations between 2011 and 2017. This aligns with the national trend of corporations as the preferred entity type for companies raising venture and angel capital.

Read more about the choice of entity type in Missouri and see the states where Missouri companies chose to incorporate.

Deal Volume by Industry

Deal volume by industry helps companies, investors, and policy makers identify naturally forming clusters to help optimize start-up ecosystems. Our unique set of data provides what we believe is the most comprehensive picture of the ecosystem in each market. See the criteria we use to determine industry here.


From 2011 to 2017, almost 30% of the venture and angel capital deals in Missouri were done by SaaS companies. The software industry was followed by biotechnology companies which made up 17% of the deals, and healthcare companies, which made up 9% of the total deal volume. Overall, technology and healthcare companies have had a significant impact on venture capital landscape in Missouri. Combined, technology companies (SaaS, technology, and mobile tech) made up 43% of the total deal volume, and healthcare (biotech, healthcare, and pharmaceuticals) made up 32% of the total deal volume.

Increasing technology deals follows nation wide trends over the last six years. Healthcare played a larger role in Missouri's venture capital landscape than we typically see in other emerging markets. Other industries, such as energy, agriculture, food services, retail and impacted the industry make up of the state.

Read more about industry's deal volume in Missouri including how we defined each industry, deal volume over time, average deal size, and more.

Capital Raised by Industry

Capital raised by industry provides statistics that help guide companies, investors, and policy makers in identifying trends. Further, capital raised by industry helps guide ecosystem leaders to craft policies that increase efficiency of the early stage capital market.

Biotechnology companies accounted for 27% of the capital raised in Missouri from 2011 to 2017. Biotechnology companies were followed by SaaS companies which made up 21% of the total capital raised, and healthcare companies which made up 15% of the capital raised in the time period we examined. Healthcare and technology companies also had a large impact on the total capital raised in Missouri. Combined, healthcare companies (biotechnology, healthcare and pharmaceuticals) accounted for 45% of the capital raised in Missouri. Combined technology companies (SaaS, technology, and mobile tech) accounted for 32% of the total capital raised in Missouri.

Read more about capital raised in Missouri by industry including fundraising trends over time, average deal size by industry, and more.

Industry Trends

Identifying industry trends helps guide companies, investors, and policy makers in determining trends and areas for improvement in the early stage capital market.

The SaaS industry appears to be growing in Missouri. In almost every year we examine, the SaaS industry had the highest deal volume of any industry in that year. In 2017, SaaS companies had the more deals than in any other year we examined. Mobile technology companies also showed a consistently upward trend in deal volume. This follows national trends which show increases in the number of software and mobile tech companies receiving funding.

The biotechnology industry had the second highest deal volume in almost every year we examined. However, deal volume in the biotechnology industry does not appear to be growing as quickly as in the SaaS industry. SaaS deals typically require less funding that biotechnology deals. The increase in SaaS deal volume, is likely a factor in why deal volume in Missouri seems to be increasing quicker than capital raised.

Read more about industry trends in Missouri and how those industries are impacting the venture capital landscape as a whole.

Industry Trends

Identifying industry trends helps guide companies, investors, and policy makers in determining trends and areas for improvement in the early stage capital market.

The SaaS industry appears to be growing in Missouri. In almost every year we examine, the SaaS industry had the highest deal volume of any industry in that year. In 2017, SaaS companies had the more deals than in any other year we examined. Mobile technology companies also showed a consistently upward trend in deal volume. This follows national trends which show increases in the number of software and mobile tech companies receiving funding.

The biotechnology industry had the second highest deal volume in almost every year we examined. However, deal volume in the biotechnology industry does not appear to be growing as quickly as in the SaaS industry. SaaS deals typically require less funding that biotechnology deals. The increase in SaaS deal volume, is likely a factor in why deal volume in Missouri seems to be increasing quicker than capital raised.

Read more about industry trends in Missouri and how those industries are impacting the venture capital landscape as a whole.

Deal Volume by City

Geographical data guides ecosystem members and leaders to align. Policy makers can use this data to identify systematic geographical and regional issues with private capital markets.

St. Louis consistently sees the highest deal volume, followed by Kansas City. These findings suggest a correlation between the size of a city and companies accessing capital. For the purpose of this graph we classified cities outside St. Louis and Kansas City as "Other". While St. Louis and Kansas City showed the largest amount of activity, it's encouraging to see 50 cities in Missouri with at least one company that received venture or angel capital financing in the last 7 years. It should be noted, that this report looks at deals that took place in Kansas City, MO. It does not include Kansas City, KS.

Read more about deal volume in cities outside St. Louis and Kansas City, city and industry trends, and more.

Capital Raised by City

Geographical data guides ecosystem members and leaders to align. Policy makers can use this data to identify systematic geographical and regional issues with private capital markets.

Similarly to deal volume by city, St. Louis accounted for the most capital raised by city. Between 2011 and 2017, St. Louis based companies raised 60% of the total capital, Kansas City based companies raised 25% of total capital, and companies based outside those two cities raised 15% of total capital. It should be noted, that this report looks at deals that took place in Kansas City, MO. It does not include Kansas City, KS.

Read more about other cities in Missouri where companies are raising money, fundraising trends in St. Louis and Kansas City, and more.

Capital Raised by City

Geographical data guides ecosystem members and leaders to align. Policy makers can use this data to identify systematic geographical and regional issues with private capital markets.

Similarly to deal volume by city, St. Louis accounted for the most capital raised by city. Between 2011 and 2017, St. Louis based companies raised 60% of the total capital, Kansas City based companies raised 25% of total capital, and companies based outside those two cities raised 15% of total capital. It should be noted, that this report looks at deals that took place in Kansas City, MO. It does not include Kansas City, KS.

Read more about other cities in Missouri where companies are raising money, fundraising trends in St. Louis and Kansas City, and more.

DATA OVERVIEW DISCLAIMER

Cara Stone, LLP sources data from a variety of sources, public, private and other. Although we believe that this data is accurate, Cara Stone, LLP does not warrant its accuracy or fitness for any particular purpose and all use is subject to these terms.

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