After a strong second quarter, D.C. venture capital saw some major drops in Q3.

VC activity in the region — which includes cities spanning from Northern Virginia to Baltimore — for the most recent quarter totaled $368 million into 36 deals, according to data shared in a recent PwC/CB Insights MoneyTree report. This is a 90% decrease in dollars and a 28% decrease in the number of deals compared to Q2 of this year. The average deal size in the region for Q3 was $11.1 million, a drop from the average deal size in Q2, which was $14 million.

Brad Phillips, a director in PwC’s Emerging Company Services practice, told Technical.ly that part of the reason for the drop in Q3 was because Q2 had Pie Insurance’s $127 million mega deal, which was only the fourth “mega deal” ($100 million and up) the region had seen since 2017; Q3 didn’t have any mega deals in the D.C. region. Also, there was a “significant reduction” in the number of deals valued at $30 million or higher this quarter.

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