Some other good posts on the state ov Venture Capital at the waning stages of the Great Recession
Another summary of the PWC/NVCA Moneytree report at the Silicon Valley Mercury News focused on the impact on Silicon Valley.
According to their analysis, the flow of venture capital into SiliconValley fell to $6.98 billion in 2009 from an average of more than $10 billion during the previous three years, the lowest since 2003. However, they pointed out that the national total of $17.7 billion was the lowest since 1997.
SVMN points out the following brights spots in venture capital
"The venture capital industry had no choice but to slow the investment pace in 2009," NVCAPresident Mark Heesen said in a news release. "Now that the economy has begun to show signs of improvement, we expect to see dollars flow more freely." and "VCs placed more bets in the fourth quarter of 2009 than we've seen all year," said Tracy T. Lefteroff, who leads the venture capital practice at PricewaterhouseCoopers. "They're investing fewer dollars in these companies, but the fact remains that there are still entrepreneurs outthere with great ideas who are getting the opportunity to take the next step forward with their businesses."
Looking at a small uptick in venture activity in Q4 2009, Dow Jones VentureSource, as quoted by Trading Markets, suggests the following:
"... venture deal activity increased in the fourth quarter of 2009. Venture investors put $6.3 billion to work in 743 deals in the most recent quarter, up slightly from the $6.1 billion invested in 619 deals during the same period in 2008." DowJones VentureSource further reported that...".. 2009 saw 2,489 deals completed and $21.4billion in venture capital invested in U.S.companies, a 31% drop from2008 when $31 billion was invested in 2,817 deals."
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