According to VentureWire, Dow Jone's Venture One and E&Y are reporting that VC investments rose almost 10% last quarter to $5.49 B, led by IT sector financing. At this rate, total VC financing for the year should come in just about $21B, the same as 2004.
IT investments of $3.1B in 311 deals represented the bulk of the financing. There was a predominant later-stage tilt as M&A remains the primary means to a liquidity event. As has been stated here, until the IPO market shows signs of life, the VC ecosystem will stay with less risky later-stage investments and the lower returns provided by acquisitions.
Update: 25 Oct
Silicon Valley News has some other information provided by Thompson Venture Economics, PwC and NVCA corroborating the numbers above: Venture capital investment maintains steady pace.
Venture capitalists poured $5.26 billion into startups during the third quarter, maintaining a methodical investment pace even as some financiers fret about another zealous push into the Internet.
The venture capital committed to 714 companies during the three months ended in September represented a 13 percent increase from the $4.65 billion funneled into 656 deals at the same time last year, according to figures released Tuesday.
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