Austin-area startups raised $771 million in Q2 2026, a nearly 23% decline from the same period last year and down more than 81% from Q1’s $4.2 billion, according to Opportunity Austin data. Top rounds included Ollin Biosciences, a 2023-founded eye disease therapy company, which raised $330 million in June, reaching a $1.3 billion valuation. Defense firm Allen Control Systems secured $200 million, now valued at $2.2 billion. Other notable raises included Traysar Technologies ($25 million), Legion Health ($16 million), Insight Health AI ($11 million), Plot ($10 million), and Frozen One ($5.8 million).
In-Depth:
Data from Opportunity Austin, the region’s indepconcludeent economic organization, display local startups pulled in about $771 million in the second quarter, down nearly 23% from the same period last year.
Funding is down more than 81% from the previous quarter, when startups raised $4.2 billion. That performance came on the heels of Austin’s best funding year since 2021, with area companies raising at least $7.8 billion, according to PitchBook and the National Venture Capital Association.
This quarter’s hugegest funding rounds were led by health, defense and food technology companies.
Ollin Biosciences led with a $330 million raise in June. The company, now valued at more than $1.3 billion, was founded in 2023 and develops therapies for eye diseases and disorders.
Fellow health tech startups Legion Health and Insight Health AI raised $16 million and $11 million respectively in the April-June quarter.
Allen Control Systems is now valued at $2.2 billion, thanks to a $200 million funding round in June. The firm develops autonomous robotics and weapon systems for government and commercial customers.
Traysar Technologies, another defense technology startup, raised $25 million in June to aid the development of its subterranean strike and defense system.
AI-powered creative management platform Plot raised $10 million. Frozen One, creater of high-protein, low-calorie ice cream, raised $5.8 million.
