WASHINGTON, DC – Venture capitalists invested $6.5 billion in 906 deals in the second quarter of 2010, according to the MoneyTree Report from PricewaterhouseCoopers (PwC) and the National Venture Capital Association (NVCA), based on data provided by Thomson Reuters.
Quarterly investment activity increased 34 percent in terms of dollars and 22 percent in number of deals compared to the first quarter of 2010 when $4.9 billion was invested in 740 deals. In the first half of 2010, venture capital (VC) investments totaled $11.4 billion going into 1,646 deals, a 49 percent increase in dollars and a 23 percent increase in deals from the first half of 2009 when $7.7 billion was invested in 1,340 deals.
Clean energy investments break record
Dollars invested in the Clean Technology sector doubled in the second quarter compared to Q1 of 2010, breaking the quarterly record for the sector.
The Life Sciences sector (biotechnology and medical device industries combined) saw a notable increase in VC investing during the second quarter, jumping 52 percent in dollars and 36 percent in deals from the prior quarter to $2.1 billion going into 234 deals.
Seed and early stage deals also increased notably in Q2 from prior quarters, accounting for a greater percentage of total deals. Mark Heesen, NVCA President said, “As the exit market begins to show signs of life, venture capitalists are now able to look increasingly at new investments outside their existing portfolio.
“This dynamic translates into momentum in the seed and early stage sectors where valuations remain reasonable and opportunities are great. Investment in the clean technology and life sciences sectors, which are generally longer term and more capital intensive in nature, are balanced by smaller deals within the information technology sectors creating a diversity of opportunities for success for entrepreneurs, VCs and limited partners alike.”
Total over $6B first time since 2008
“Venture capitalists are feeling more positive about the economic outlook for investment, based upon the jump we saw in VC funding this quarter,” noted Tracy T. Lefteroff, global managing partner of the venture capital practice at PricewaterhouseCoopers.
“The quarterly investment total surpassed the $6 billion mark for the first time since Q3 2008 and the number of deals was the highest we’ve seen since Q4 of 2008.
“The rise in companies lining up to go public in the Life Sciences space in Q2 was also a likely driver of the strong rebound we saw in investing in this sector during the quarter.
“And, a $350 million deal, the biggest deal in the second quarter, pushed the Clean Technology sector to its highest total on record. If the markets remain positive, we’ll likely continue to see robust investment levels for the remainder of the year, with VC funding in 2010 poised to surpass 2009 levels.”
North Carolina saw 14 deals worth more than $130 million. In South Carolina, two deals were worth $4.2 million.
Georgia saw 17 deals that totaled $34 million in investments.
Full reports and regional breakdowns are available at NVCA.
Contact Tech Journal South Editor and writer Allan Maurer: Allan at TechJournalSouth dot com.
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Tags: NVCA, PWC, quarterly venture capilal report, Thomson Reuters, Venture investing up in Q2 2010
