Posts Tagged ‘NVCA’
Wednesday, October 19th, 2011
 Venture capitalists invested $6.95 billion in 876 deals in the third quarter of 2011, falling in both dollars and deal volume, according to the MoneyTree Report from PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA), based on data provided by Thomson Reuters.
The software industry saw the highest level of funding and was one of the few to see an increase in dollars invested. Early stage funding deals represented nearly half the total dollars invested, although first time financing deals fell 22 percent.
Quarterly venture capital (VC) investment activity fell 12 percent in terms of dollars and 14 percent in the number of deals compared to the second quarter of 2011 when $7.9 billion was invested in 1,015 deals. For the first three quarters of 2011, venture capitalists invested $21.2 billion into 2,725 deals, representing 20 percent more dollars and three percent more deals as the first three quarters of 2010.
Life sciences industries see marked decline in dollars and deals
The Life Sciences (biotechnology and medical device industries combined) and Clean Technology sectors saw marked decreases in both dollars and number of deals while the Software sector enjoyed its strongest quarter in almost 10 years.
“Challenges in the regulatory environment for Life Sciences companies are prompting VCs to look to other industries to put their money to work for a faster return on their investment as indicated by the notable increase in Software investments,” remarked Tracy T. Lefteroff, global managing partner of the venture capital practice at PwC US.
“Accordingly, over the past two quarters, we’ve seen a clear shift in Life Sciences investments from Seed/Early Stage companies over to more Later Stage companies. VCs are continuing to support the companies in their pipeline but appear to be curbing their investments in new Life Sciences companies.
Despite the dip in Life Sciences and in the overall investment total for Q3, 2011 is still on track to exceed the $23.3 billion invested in all of 2010.” “Given the tremendous impact that venture capital has on company creation, it is easy to forget that our industry is small and highly susceptible to the many market forces presently at work,” said Mark Heesen, president of the NVCA.
“Public policy challenges in the life sciences and clean technology sectors are impacting investment levels this quarter as is the IPO market that basically came to a screeching halt in August.
Venture fundraising levels are the lowest they have been in nearly a decade so it is reasonable to expect investment levels to decline in the coming years. Yet despite the challenges, the industry continues to fund new companies because history has shown us that innovation always prevails and there remains significant promise across all industry sectors for these emerging growth companies.”
Software industry received highest level of funding
The Software industry received the highest level of funding for all industries with $2.0 billion invested during the third quarter of 2011. This level of investment represents a 23 percent increase in dollars, compared to the $1.6 billion invested in the second quarter, and the highest quarterly investment in the sector since the fourth quarter of 2001.
The Software industry also had the most deals completed in Q3 with 263 rounds, which represents a one percent decrease from the 267 rounds completed in the second quarter of 2011. The Biotechnology industry was the second largest sector for dollars invested with $1.1 billion going into 96 deals, falling 18 percent in dollars and 20 percent in deals from the prior quarter.
Medical device industry sees decline
The Medical Devices and Equipment industry also experienced a decline, dropping 18 percent in Q3 to $728 million, while the number of deals declined 21 percent to 74 deals.
Overall, investments in the Life Sciences sector (Biotechnology and Medical Devices) fell 18 percent in dollars and 21 percent in deals, dropping to the second lowest quarterly deal volume since the first quarter of 2005.
To the contrary, Healthcare Services investments surged with $152 million going into 11 deals, a 200 percent increase in dollars and 38 percent increase in deal volume over the second quarter. Investment in Internet-specific companies fell in the third quarter to $1.6 billion going into 231 deals. This level of investment represents a 33 percent decrease in dollars and a 21 percent decrease in deals from the second quarter when $2.4 billion went into 292 deals, a ten-year high.
Internet-specific is a discrete classification assigned to a company with a business model that is fundamentally dependent on the Internet, regardless of the company’s primary industry category.
The Clean Technology sector, which crosses traditional MoneyTree industries and comprises alternative energy, pollution and recycling, power supplies and conservation, saw a 13 percent decrease in dollars to $891 million in Q3 from the second quarter when $1.0 billion was invested.
The number of deals completed in the third quarter also declined nine percent to 80 deals compared with 88 deals in the second quarter Fourteen of the 17 MoneyTree sectors experienced decreases in dollars invested in the third quarter, including:
Telecommunications (49 percent decrease), Semiconductors (44 percent decrease), Consumer Products & Services (51 percent decrease), and Media & Entertainment (11 percent decrease).
Stage of Development Seed stage investments fell 56 percent in dollars and 26 percent in deals with $179 million invested into 89 deals in the third quarter. Early stage investments also fell seven percent in dollars and six percent in deals with $2.0 billion going into 341 deals.
Seed/early stage deals nearly half the total
Seed/Early stage deals accounted for 49 percent of total deal volume in Q3, compared to 48 percent in the second quarter. The average Seed deal in the third quarter was $2.0 million, down from $3.3 million in the second quarter. The average Early stage deal was $5.7 million in Q3, down from $5.8 million in the prior quarter.
Expansion stage dollars increased two percent in the third quarter, with $2.5 billion going into 260 deals. Overall, Expansion stage deals accounted for 30 percent of venture deals in the third quarter, up from 26 percent in the second quarter of 2011. The average Expansion stage deal was $9.6 million, up from $9.2 million in the prior quarter. Investments in Later stage deals decreased 20 percent in dollars and 30 percent in deals to $2.3 billion going into 186 rounds in the third quarter.
Later stage deals accounted for 21 percent of total deal volume in Q3, compared to 26 percent in Q2 when $2.9 billion went into 265 deals. The average Later stage deal in the third quarter was $12.5 million, which increased from $11.0 million in the prior quarter and represents the largest average deal size for Later stage companies since the third quarter of 2001.
First-time financings fell 22 percent
First-Time Financings First-time financing (companies receiving venture capital for the first time) dollars decreased 22 percent and the number of deals fell 18 percent with $1.2 billion going into 269 deals. First-time financings accounted for 17 percent of all dollars and 31 percent of all deals in the third quarter, compared to 20 percent of all dollars and 32 percent of all deals in the second quarter of 2011.
Companies in the Software, Media & Entertainment, and IT services sectors received the most first time rounds in the third quarter. There was a significant decline in the number and dollar level of first time rounds in the Life Sciences sector.
The average first-time deal in the third quarter was $4.5 million, down slightly from $4.7 million in the prior quarter. Seed/Early stage companies received the bulk of first-time investments, garnering 74 percent of the deals. MoneyTree Report results are available online at www.pwcmoneytree.com and www.nvca.org
Tags: dollars and deals decline in Q3, NVCA, PWC, software industry leads VC investment Q3, venture capital report Q3 2011
Posted in Biotech, Energy, entrepreneurship, Hardware, Healthcare, Internet/New Media, Medical Device, Mobile, mobile games, Money, Pharma, Studies, surveys, reports, Telecommunications, Uncategorized, venture capital report | Comments Off
Friday, April 15th, 2011
 WASHINGTON, DC – Venture capitalists invested $5.9 billion in 736 deals in the first quarter of 2011, 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 5 percent in terms of dollars but fell 11 percent in number of deals compared to the fourth quarter of 2010 when $5.6 billion was invested in 827 deals.
The quarterly deal count represents the lowest number of deals in a single quarter since the third quarter of 2009. However, the first quarter of 2011 marks the first time in four years that the amount invested in the first quarter has shown an increase over the fourth quarter investment amount.
“The first quarter investment total is setting us on a path for a solid level of investing in 2011. While we did see a drop in deal volume, the dollars invested remains strong,” noted Tracy T. Lefteroff, global managing partner of the venture capital practice at PwC US. “Accordingly, we’re seeing an uptick in average deal size, which hit $8.0 million in Q1for the first time since the first quarter of 2007.”
She added, “And, in the first quarter, 14 companies received funding rounds of $50 million or more, with four of those deals worth more than $100 million. We haven’t seen this many deals worth $50 million or more in a single quarter since the third quarter of 2001. This is a clear indicator that VCs are seeing innovative companies walk through their doors and that the entrepreneurial spirit of America is alive and well and thriving.”
“Despite recent hype about both funding gaps and bubbles within the venture capital industry, the first quarter demonstrates an investment pace that is reasonable, rational and relevant to the long term nature of our business,” said Mark Heesen, president of the NVCA. “What we are not seeing this quarter is just as critical as what we are seeing.”
He expalined, “We are not seeing venture capital dollars flooding any particular sectors, including the Internet or clean technology. And we are not seeing a mass exodus from sectors, such as life sciences, where significant challenges lie.”
Also, he said, “What we are seeing is a commitment to funding companies through the various stages of their lifecycles, even in the later stages when capital needs intensify substantially. What this deliberate and prudent pace of investment lacks in hype, it makes up for in sustainability, and we are very encouraged for the coming year.”
The software industry received the highest level of funding with $1.1 billion invested in the first quarter. Clean Tech saw a 26 percent increase in dollars over the fourth quarter last year, reaching $1 billion and the number of deals increased by 11 percent.
Internet-specific companies also received more than one billion dollars with $1.2 billion going into 171 deals in the first quarter, a 19 percent decrease in dollars and an 18 percent decrease in deals from the fourth quarter of 2010 when $1.5 billion went into 208 deals.
Tags: clean tech, deals down, dollars up, Mark Heesen, NVCA, PWC, Q1 2011, software, Tracy Lefteroff, venture captial report
Posted in Energy, Internet/New Media, IT, venture capital report | Comments Off
Tuesday, April 12th, 2011
 Mark Heesen, President, NVCA NEW YORK – Thirty-six US venture capital funds raised more than $7 billion in the first quarter of 2011, according to Thomson Reuters and the National Venture Capital Association (NVCA). This level marks a 76 percent increase, by dollar commitments, compared to the first quarter of 2010, which saw 44 funds raise $4.0 billion during the period.
The first quarter marks the strongest quarter for US venture capital fundraising since the third quarter of 2008 and the best annual start for fundraising in the U.S. since 2001.
“This year will be a defining one as many venture capital firms will be fundraising, some of whom have been waiting for the investor climate to improve before going out,” said Mark Heesen, president of the NVCA. “While it is encouraging to see the increase in dollars this quarter, much of that was driven by several larger, established funds. We would like to see a similar increase in the number of firms successfully closing funds as the year progresses.”
There were 25 follow-on funds and 11 new funds raised in the first quarter of 2011, a ratio of 2.3-to-1 of follow-on to new funds. The largest new fund reporting commitments during the first quarter of 2011 was Tempe, Arizona-based True North Venture Partners, which raised $192 million in its inaugural fund. A “new” fund is defined as the first fund at a newly established firm, although the general partner of that firm may have previous experience investing in venture capital.
VC Funds: New vs. Follow-On
The first quarter of 2011 saw three multi-billion dollar fundraising commitments, led by Bessemer Venture Partners VIII which raised $1.6 billion during the quarter. Sequoia Capital 2010, L.P. raised $1.3 billion and J.P. Morgan Digital Growth Fund raised $1.2
billion. The $1.6 billion commitment for Bessemer Venture Partners VIII marks the largest U.S. venture capital fund commitment since New Enterprise Associates 13, raised $2.2 billion during the second quarter of 2009.
Tags: Mark Heesen, NVCA, Q1 2011, stongest since 2008, Thomson Reuters, up 76 percent since Q1 2010
Posted in Money, venture capital report | Comments Off
Monday, February 21st, 2011
Mark Heesen, President, NVCA NEW YORK – Deal flow increased in venture capital investment during 2010 for the first time in two years and posted the first positive year-over-year gain since 2007, according to the latest MoneyTree Report from the National Venture Capital Association (NVCA) and Pricewaterhouse Coopers.
Venture funds invested 19 percent more at $21.8 billion in 2010 and deals grew by 12 percent, totaling 3,277.
Mark Heesen, president of the NVCA said, “We were clearly in recovery mode and we hope this continues in 2011.” You can catch up with Heesen and hear his latest perspective on the VC industry in person at TechMedia’s fifth annual Southeast Venture Conference in Atlanta March 2-3.
Although venture funding slowed in the last two quarters of 2010, a strong first quarter and better second quarter kept the year’s numbers in positive territory.
Companies landing venture backing for the first time increased 30 percent, which is a good sign that VCs are deploying capital again, after hoarding cash for portfolio firms during the recession.
Software firms grabbed the biggest slice of venture pie last year, with 835 firms getting $4 billion, about a 20 percent increase over 2009.
Clean tech companies saw an increase of 76 percent in dollars invested and the sector tallied 37 percent more deals than in 2009. Clean tech accounted for five of the ten venture deals chalked up in the last quarter of 2010.
The last quarter’s largest deal shows the continuing attraction of social media. Investors poured $200 million in microblogging site Twitter, making it the second largest deal of the year. Only the $350 million invested in California clean tech firm Better Place was larger.
Silicon Valley asserted its continuing dominance and accounted for five of the biggest deals in 2010.
Most sectors saw double-digit increases in investments over 2009, including telecom (up 77 percent) and IT services (up 44 percent).
Internet specific companies saw a 28 percent boost in dollars ($1.2 billion) and was up 14 percent in deals (190).
Tags: clean tech, IT services, Mark Heesen, NVCA, PriceWaterHouseCoopers, software, Southeast Venture Conference, VC deal flow up in 2010
Posted in Hardware, Internet/New Media, IT, venture capital report | Comments Off
Friday, January 21st, 2011
WASHINTGON, DC – Venture capitalists invested $21.8 billion in 3,277 deals in 2010, an increase of 19 percent in dollars and a 12 percent rise in deals over the prior year, according to the MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association (NVCA), based on data from Thomson Reuters.
Mark Heesen, President, NVCA The rise in venture investments in 2010 represents the first time the annual investment level has increased since 2007. Investments in the fourth quarter of 2010 totaled $5 billion in 765 deals, a 2 percent increase in dollars but a 3 percent decrease in deals from the third quarter of 2010 when $4.9 billion went into 789 deals.
In the Southeast, North Carolina saw VC investing return to pre-recession levels with 57 deals worth more than $456 million, although deals fell precipitously in Q4. Email marketing company iContact had the largest NC deal of the year, raising nearly $40 million.
In Georgia, VCs invested $333 million in 63 deals. Georgia actually saw a spike in Q4 with investments of $100 million in 12 deals, even as many other states saw severe dips in the year’s final quarter.
Double-digit increases in investments in 2010 were spread across almost every industry, including the Clean Technology and Internet-Specific sectors. Investment dollars also increased across every stage of development category, with the exception of a 2 percent decrease in Seed stage investments.
First-time financings rose in 2010 compared to the prior year, however, fourth quarter investing did show a decline in both first-time dollars and deals when compared to Q3 2010.
“The venture capital community found itself in a better position at the end of 2010,” said Mark Heesen, president of the NVCA. “We were clearly in recovery mode with investment levels reflecting the economic reality of our business. Increased investment across a diverse range of sectors highlighted those areas where the greatest opportunities lie, particularly within the Internet, software and clean technology industries.”
He added, “Continued fundraising and exit market challenges have greatly reduced the probability of investment bubbles in specific sectors as there simply is not enough capital to overinflate any particular market. The year’s increase in first time deals and early stage investment is encouraging as this trend suggests that the venture community is doing more with less. We hope this continues in 2011.”
“As expected, we saw the venture capital investment level in 2010 surpass that of 2009,” noted Tracy T. Lefteroff, global managing partner of the venture capital practice at PricewaterhouseCoopers. “And, there were nearly 30 percent more new companies receiving venture capital for the first time in 2010 than in 2009. This bodes well for 2011 as venture capitalists continue to support these new investments as they grow and expand their businesses.”
Expansion and later stage companies raised the most money in Q4 while those landing early stage seed funding dropped 21 percent.
Software companies landed the most funding at $1.2 billion, followed by industrial and energy startups which raised $853 million. Biotechnology firms were third, raising $684.9 million.
Clean tech jumped 74 percent in 2010 with deals worth $765.5 million. The sector has been hot since 2009 except for the third quarter of 2010, when deal flow fell.
MoneyTree Report results, including full regional breakdowns, are available online at www.pwcmoneytree.com and www.nvca.org.
Tags: 2010 venture capital report, Georgia, Mark Heesen, NC, NVCA, PriceWaterHouseCoopers, VC investments increased
Posted in Carolinas, Georgia, Internet/New Media, IT, Money, North Carolina, venture capital report | 1 Comment »
Friday, October 15th, 2010
NEW YORK – Venture capitalists invested 31 percent fewer dollars in companies during the third quarter of 2010 compared to the second quarter, with the number of deals falling 19 percent, according to the MoneyTree report from PricewaterhouseCoopers and the National Venture Capital Association based on data provided byThomson Reuters.
At TechJournal South, we have noticed a distinct drop in the number of funding deals in the Southeast. Unless the trend changes between now and the end of the year, we suspect the numbers could be worse for the fourth quarter.
Venture capitalists invested $4.8 billion in 780 deals in the third quarter of 2010. The decrease in dollars invested was in large part due to the absence of large rounds in the Clean Technology sector, which drove last quarter’s higher investment levels. Yet with few exceptions, investment in all industry sectors slowed this quarter.
Still, venture investors continued to invest more into first-time deals versus follow-on rounds, the report says. That’s a good trend, because during the recession, many VC firms keep dry powder for follow-on rounds in their portfolio companies and reduced the number of their new investments.
“While overall funding in traditionally strong sectors like Life Sciences and popular Clean Technology were down, Biotechnology continued to bring in significant funding while Software took the lead as the top generator of VC dollars in Q3,” said Tracy T. Lefteroff, global managing partner of the venture capital practice at PwC. “Compared to the third quarter of 2009, investing remained relatively flat; however, despite declines for the quarter, funding remains on course to pass investment levels of 2009.”
Mark Heesen, president of the NVCA, looked for positive signs in the third quarter numbers.
“Despite investment declines, there are reassuring signs of stability in the third quarternumbers,” he said. “While the burgeoning clean
technology industry will experience significant investment volatility as the sector matures, the established software and life sciences sectors continue to benefit from a steady commitment of venture capital dollars being put to work within meaningful pockets of innovation.”
He added, “Cloud computing, social media and security continue to show tremendous promise on the IT side while medical advances abound in biotechnology and medical device fields. But what is even more reassuring is that first time financings are holding strong, evidencing that venture investors are making a steady stream of new bets and filling the innovation pipeline, driving our industry and our future economy.”
Industrywise, software regained its position as the number one sector for investment with $1 billion going into 190 rounds. Even that is a 13 percent decrease in dollars and a 21 percent decline in deal volume from the second quarter.
The Biotechnology industry received the second highest level of funding for all industries in the quarter with $944 million going into 108 deals. This level of investment represents a 32 percent decrease in dollars and a 29 percent decrease in deals.
The Clean Technology sector, which crosses traditional MoneyTree industries andcomprises alternative energy, pollution and recycling, power supplies and conservation, saw a 59 percent decrease in dollars to $625 million compared to the second quarter
when venture capitalists invested $1.5 billion. The number of Clean Technology deals completed in the third quarter also declined by 26 percent to 58 deals compared with 78 deals in the second quarter.
For the complete data, including regional breakdowns see the NVCA site.
Tags: Biotech, clean energy, NVCA, PriceWaterHouseCoopers, Q3 VC funding falls, software, Thomson Reuters
Posted in Biotech, Energy, Internet/New Media, IT, Studies, surveys, reports, venture capital report | Comments Off
Wednesday, September 8th, 2010
WASHINGTON, DC – The National Venture Capital Association (NVCA) today announced the formation of the Medical Innovation and Competitiveness (MedIC) Coalition, a new alliance comprised of both venture capital firms and their life sciences portfolio companies. The MedIC Coalition will be a united voice in Washington D.C. advocating for policies and regulations that advance U.S. medical innovation and protect the country’s global leadership position in the life sciences industry.
The Coalition has three overarching goals:
• Bring the importance of medical innovation to the forefront as the country implements healthcare reform
• Establish new and preserve existing incentives for investors and entrepreneurs to develop and commercialize medical innovations in the U.S.
• Achieve broad-based F.D.A. reform
“Medical innovation is a significant contributor to our national goal of increasing access to healthcare, improving the quality of medical care, and creating high quality jobs. Yet until now, innovation has been largely absent from the public discussion on healthcare reform,” said Beth Seidenberg, MD, chairperson of MedIC and a general partner of Kleiner Perkins Caufield & Byers.
“MedIC will address the rising concern that the U.S. is at risk of losing our leadership position in innovation and job creation due to increasing uncertainty in the regulatory and reimbursement processes, healthcare reform implementation and the capital markets. If we don’t act now our increasingly formidable global competitors will.”
“The U.S. healthcare system runs on innovation; if capital and incentives dry up, the whole system will suffer. This scenario could become a reality in the next decade as our current regulatory environment threatens to place our country at a disadvantage to foreign nations that are seeking to create more favorable conditions for innovators and investors,” said Mark Heesen, president, NVCA.
“In some instances, breakthrough therapies have migrated overseas to take advantage of more innovation friendly environments. MedIC wants the United States to continue to be leaders in discovering, developing and commercializing innovation. The game is ours to lose and we have no intention of losing it.”
“Historically, most of the breakthrough medical innovations in the United States have come from the start-ups and physician inventors,” said Josh Makower, MD, chief executive officer of Exploramed and MedIC steering committee member.
“Breakthroughs such as the pacemaker, angioplasty and pulse oximetry were once lab experiments brought to life by entrepreneurs and venture capitalists working together to improve the quality of life for millions. We are now joining forces to ensure that the U.S. regulatory environment allows for the next wave of medical innovations to reach the public market.
Membership in MedIC is open to NVCA member firms and their life sciences portfolio companies. Additional information can be found at medic.nvca.org
Tags: DC, lobbying, MedIC, NVCA
Posted in Biotech, Healthcare, Medical Device, Pharma | Comments Off
Thursday, July 29th, 2010
Mark Heesen, President, NVCA ARLINGTON, VA – Exit markets have improved gradually but steadily in 2010, which is in evidence from the number of M&A deals we’ve seen and even a handful of IPOs slipping through open windows in a volatile market, boosting short-term venture capital performance in the first quarter 2010. But ten-year returns continue to decline. So says the Cambridge Associates U.S. Venture Capital Index, the National Venture Capital Association’s quarterly report on venture returns.
Mark Heesen, NVCA president said, “Top firms continue to perform well above the index but that band has narrowed over the last several years, fostering the Darwinian environment in which the venture industry is operating,” added Heesen. “We will need several quarters of healthy and viable IPOs and M&As to widen that pool of top performers and move returns back to the historical levels expected by our investors.”
The improving exit market helped limited partners in venture funds see some gains this year.
Peter Mooadian of Cambridge Associates said that if exit markets continue to improve, the decline in ten year returns should return to break-even or “modestly positive territory” by the second half of 2011.
For the full report see: National Venture Capital Association
Tags: Cambridge Associates, Mark Heesen, NVCA, Q1 2010, venture returns
Posted in venture capital report | Comments Off
Friday, July 16th, 2010
 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.
Tags: NVCA, PWC, quarterly venture capilal report, Thomson Reuters, Venture investing up in Q2 2010
Posted in Carolinas, Georgia, North Carolina, South Carolina, Studies, surveys, reports, venture capital report | Comments Off
Monday, July 12th, 2010
M WASHINGTON, DC – Venture capital fund raising dropped precipitously in the second quarter this year to the the lowest level since 2003, according to the National Venture Capital Association and Thomson Reuters.
In a 49 percent drop from the first quarter this year, 38 funds raised only $1.9 billion.
NVCA President Mark Heesen says its a trend fired by “Ongoing economic uncertaintay,” which has “kept many limited partners and venture firms on the fund raising sidelines in 2010.”
He said they are likely to remain hesitant for the remainder of this year.
“Recent positive activity in the exit market , particularly on the M&A side, could generate some meaningful cash distributions which would pave the way for firms looking a receptive investor base. However, the pipeline of venture firms that are poised to raise their next fund continues to grow and could result in a crowded market in 2011 and beyond,” he said.
Venture funds have raised a total of $5.65 billion so far in 2010.
Tags: DC, NVCA, Q2 2010 venture fund raising drops, Thomson Reuters, Washington
Posted in Business Briefs, Money, venture capital report | Comments Off
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