Bay Area startups lead in funding

South Bay comes in at No. 3 with 166 deals that total $3.9 billion

U. S. venture capital funding rose in the second quarter to a record $23 billion, with San Francisco startups leading the way in number of deals.

San Francisco-based Lyft received the biggest round of funding for the quarter: $600 million from Fidelity Ventures, according to the MoneyTree Report released by PricewaterhouseCoopers and CB Insights on Thursday. That infusion, announced in June, raised the ride-hailing company’s valuation to $15.1 billion.

A total of 271 San Francisco startups received $5.6 billion in the quarter. The number of deals there grew from 260 in the first quarter, but the amount invested declined nearly 14 percent from $6.5 billion in that quarter.

The South Bay (which theMoneyTree report refers to as Silicon Valley) was No. 3 on the list of top regions for venture funding, with 166 deals totaling $3.9 billion. That amount was flat from the first quarter, while the number of deals dropped from 170

deals in that quarter.

There were 1,416 deals in the United States in the second quarter, up from 1,297 deals in the previous quarter.

Robinhood, based in Palo Alto, received $ 363 million in a round led by capital-G, Kleiner Perkins Caufield & Byers and DST Global. That put the fintech company at No. 3 on the list of top recipients of funding.

Bay Area star tups topped the list of megadeals — funding rounds worth $100 million or more — of which there were 45 in the second quarter. They include OpenDoor Labs, the San Francisco startup that enables online homebuying, which was No. 4 on the overall list of amount of funding received. It received $325 million from General Atlantic, GGV Capital and New Enterprise Associates. Tradeshift, a San Francisco-based provider of business commerce ser- vices, received $250 million from HSBC and Public Sector Pension Investment Board. Crowdstrike, the Sunnyvale artificial intelligence/cybersecurity startup, received $200 million from Accel, capital -G and General Atlantic.

Investments in artificial intelligence and fintech startups rose, with the former seeing its big- gest funding round ever at more than $1.8 billion and the latter seeing a 40 percent rise in funding, to $3 billion. Cybersecurity companies saw an increase in investments in the second quarter after three straight quarters of declines.

Contact Levi Sumagaysay at 408-859- 5293.