Xconomy: MoneyTree Report Sees Third-Quarter Slowdown in U.S. Venture Investments
Summary
The numbers marked a slowdown from the preceding quarter, when venture capitalists put $7.9 billion in 1,015 deals.But look at what’s happened since June: Fresh worries about Europe’s debt crisis, U.S. market volatility, and waning economic confidence all followed a protracted political stalemate over raising the federal debt ceiling and adopting a new federal budget.The slowdown charted in the MoneyTree Report contrasts with the VC report released last week by CB Insights, which shows continuing momentum, with VC activity strengthening this year from $7.5 billion invested in 738 deals during the first quarter through the $7.9 billion invested in 790 deals during the third quarter.Venture investments in 263 software and IT-related deals totaled $2 billion during the third quarter—the biggest slug of money to go into IT since the fourth quarter of 2001, according to the MoneyTree Report.The $1.1 billion invested in 96 biotech deals nationwide during the third quarter represented an 18 percent drop in dollars and a 20 percent decline in deals from the preceding quarter, according to Tracy Lefteroff, a global managing partner of PricewaterhouseCoopers’ U.S. venture capital practice.
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