Early stage investment in the coding tools sector registered the hardest blow with 2016’s $82M worth of investments being a far cry from 2015’s $312M. While seed and series A funding rounds remained relatively consistent with the previous years’ funding, series B registered the sharpest decline, with the average ticket size almost halving from 2015’s $55.5M to 2016’s $26.8M.
Geneva-based SonarSource’s $45M PE round was the biggest of 2016. There were seven acquisitions in 2016, for none of which the deal size was disclosed. Some notable deals involving big names in the industry included IBM’s acquisition of EZSource in June and Amazon’s acquisition of Cloud9 in July.
Code management tools that help developers in maintaining source code, improving developer productivity and code quality, hitherto investor-favourites, saw a sharp decline from $281M invested across 13 rounds in 2015 to $70M across 5 rounds in 2016.
500 Startups, Y Combinator, and Accel Partners were the most active investors making ten, seven and six investments respectively.
Those were some of the insights on the Coding Tools sector. The full report covers over 677 companies and $1.1B worth of investments over 199 rounds. You can download the full report here.