Home Tech Ecosystem Q1 2020 Wrap Up: San Diego Tech Ecosystem Funding Amidst COVID-19

Q1 2020 Wrap Up: San Diego Tech Ecosystem Funding Amidst COVID-19

by Neal Bloom

By Neal Bloom

Wow, what a start to the year. As I write this, quarantined at home, I never would have expected an economy-shattering pandemic to be gripping the world. While it’s damage is far-reaching and will permanently affect the world, we want to highlight some positive trends in San Diego’s ecosystem throughout Q1 and offer some resources for moving forward.

Private Funding

Although local funding in 2019 compared to 2018 was down, 2020 Q1 funding is actually up from 2019 Q1, of which you can see our data here. Some large funding rounds came at opportune times to help companies through this tough time, including Cloudbeds, Kneron, Flock Freight, and SOCi

2020 Q1 Funding – $655.8M

2019 Q1 Funding – $539.6M


We did not include some massive private equity fundings in the above, including Lytx getting a majority share investment of $2.5 billion and EcoATM receiving a $200 million share buy from one PE to another PE. Other acquisitions of note include PvP Biologics for $330 million, Performance Team for $545 million, and vision innovation tech startup Aira. Cybersecurity company ID Analytics, which had previously been acquired by LifeLock for $120 million, was again sold, this time to Relx for $375 million.

The Future of Our Ecosystem

While new funding for startups is getting put on hold, and certain industries are nearly shut down (hospitality, travel) others are surging incredibly high (such as delivery and logistics). The new dynamics of the economy will continue to impact funding, revenue, staffing, and exits/outcomes for our local companies. The effects on our commercial real estate will definitely need to be watched as companies are both shrinking and learning how to operate with flexible work arrangements. 

As much as a lot of our lives are on hold, we’re seeing a few strong trends related to COVID-19. With all the worry of what is to come, it’s incredibly inspiring to see our community lean in and battle his deadly virus on the front lines, and community leaders step up to share resources to help everyone get through this. Stay strong and stay home; there is light on the other side.


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