Central Mass. Still On VC Map

Twelve Central Massachusetts companies scored with venture funding during the third quarter, according to the most recent data from the most recent MoneyTree Report. In all, local companies received $72.5 million.

Top Layer Networks of Westborough was the biggest winner locally during the quarter. The network security firm netted a $13 million late-stage investment from CrossHill Financial Group Inc. and Loudwater Investment Partners Ltd.

The Natick-based medical device company Soteira Inc. received a $12 million investment while the Boxborough-based software company Auraria Networks Inc. received about $10 million.

Baby Companies

Only three Central Massachusetts companies — Punchbowl Software Inc. of Framingham, Interlace Medical Inc. of Framingham and Soteira — received “early state” investment.

Overall, venture investment in the United States was down during the quarter. VC funding totaled $7.1 billion in the third quarter, a 7 percent decline compared to the previous quarter.

Statewide, 99 deals representing $746.2 million in capital closed during the quarter. That’s down more than 30 percent from the same quarter a year earlier.

PricewaterhouseCoopers said it does expect to see a “dip” in venture investing in the next “several quarters,” but does not expect venture funding to dry up. Venture investing “hasn’t yet been impacted by the turmoil in the financial markets,” PricewaterhouseCoopers said.

According to the report, which is compiled in collaboration with the National Venture Capital Association and based on data provided by Thomson Reuters, the biotech and software industries remained the top sectors for venture investment.

The life sciences and medical devices sector saw a 10 percent increase in venture funding during the quarter while the clean technology sector saw a 14 percent increase compared to the previous quarter.

Internet-specific companies were the big losers of the third quarter and saw a 36 percent decline in investment compared to the previous quarter.

The firm said a notable decline in new venture investing would take place if venture-backed firms hit hard by economic turmoil required unplanned investments by their backers. Those unplanned investments could take away from firms’ ability to invest in new companies.

WBJ staff writer Matthew L. Brown also contributed to this story.