Venture capital dollars going to startups in the U.S. stabilized in the second quarter at $3.7 billion, according to the latest MoneyTree Report from PricewaterhouseCoopers and the National Venture Capital Association. The venture money invested in the quarter is still only about half of what it was a year ago (when it was $7.2 billion in the second quarter of 2008), but is 15 percent above the low point in the first quarter of 2009 (when it was $3.5 billion). All in all, VC investments are trending at mid-1990s levels, which isn’t such a bad thing.
The average deal size came up a little bit to $6 million, from $5.3 million last quarter. Seed and early stage investing picked up after venture capitalists fled to the perceived safety of later-stage investments in recent previous quarters.
The rebound, if you want to call it that, hasn’t hit the Internet sector yet. Internet deals brought in only $524 million in the quarter, down from $593 million the quarter before and $1.7 billion a year ago. Clean tech isn’t doing so hot either, with only $274 million invested during the second quarter compared to $911 million a year ago. Most of the action came from biotech and medical devices, which saw bigger jumps in funding during the quarter to $88 million and $628 million, respectively.
Remember, this is only one source of data (most of it from Thomson Reuters). We actually measured nearly twice the dollar amount of venture deals during the quarter on CrunchBase, which we’ll share more fully soon.
why didn’t you link MoneyTree source?
Because it’s not yet online. I added a link though for when they decide to add the data.
Do you have data to compare against the dot-com bust?
In Recession Period ?
Well…
Were there any other industries mentioned in the report?
-dms
Erick, this was totally predicted:
http://tinyurl.com/l26uge
Q3 2009 will be even more interesting. More predictions to come.
So far, so good. Let’s see how the second half of your prediction pans out next Q.
“Q2 2009 investments will remain low, though higher than Q1, as venture capitalists take a step back and evaluate what investments to make in the new global economy. But new investments will start to surface towards the end of Q2 and in Q3 2009″
You mean my idea for a Twitter for hamsters won’t get funding now?
Venture funding needs to drop a lot more before we get to a pre bubble-1.0 mentality of funding companies with an actual viable product/idea. From the company profiles I see daily on TechCrunch we’ve got more to fall…
This year is “Trough”
Money comes money go
And money comes again, and goes again. And on and on and on and makes everyone’s dreams come true.
I want to start a website similar to deals 2 buy in india. Even i started with http:\\www.dealskabaap.com .could somene help me out with the money and technology advice
Hi I saw your interest in a website. You may want to try Odesk they are free lance site for online work. They are into web building.
Arrgghhh!!! A little good news, but still very frustrating.
wow! interesting. Some one please fund my concept
check http://www.frea...om/freaky-about
You don’t need funding yet! You need to find developers that believe in your idea!
Btw, VC dollars increased 5,7% from Q1 to Q2, not as mentioned 15%.
Hopefully startups will get higher valuations in Q3-Q4. This Christmas will be interesting indeed.
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