Venture Capital Today: Key Numbers to Remember

Ben Parr is an Editor at Mashable; here he’s collected some key numbers and trends to know regarding VC activity.  Hopefully this data will help you figure out what to expect from venture capitalists as we approach 2010: 

1.     $4.8 billion in venture capital was invested in total in Q3 2009.  This is up from a low point of $3.32 billion in Q1 2009, but well below the $7.16 billion invested in Q3 2008. 

2.     There were 637 investments in Q3 2009.  This is down from the 994 investments of Q3 2008 and, in fact, amounts to a 3% drop in investments from the second quarter of 2009.

3.     The average deal in the third quarter of 2009 was worth $7.54 million.

4.     Biotechnology led venture capital investments in Q3 2009 with $905 million.  Not far behind was Industrial/Energy, Software, and Medical Devices.  Biotechnology saw 104 deals.

5.     Internet-specific companies received $843 million through 148 deals in Q3 2009. Financial investment increased by 42% from Q2 2009, indicating that the Web is recovering from the recession as well.

6.     Seed funding is growing.  $1.6 billion of venture capital in Q3 2009 came from seed and early-stage funding, which represents an 11% growth from last quarter.  While most people think of seed funding as small investments that can start as low as a couple hundred thousand dollars, the truth is that the average seed investment is around $5.9 million today, which is actually down from the $9.6 million average of Q2 2009.

7.     First-time deals are getting smaller.  In Q3 2008, the average first-round deal was $5.1 million.  In Q3 2009, it’s $4.1 million, nearly a 20% decrease.

8.     Silicon Valley is recovering. In Q3 2009, Silicon Valley saw a 63% increase in investments from Q2 2009, amounting to $2.2 billion being invested in the technology capital of the world.

9.     Around half of the most active venture capital firms are in Silicon Valley. According to the PriceWaterhouseCoopers/MoneyTree report, around 29 of the 59 firms with five or more deals in Q3 2009 were from Silicon Valley.  However, with 20 deals, New Enterprise Associates in Baltimore, MD led the list.

Venture Capital Today: Key Numbers to Remember : Technology :: American Express OPEN Forum.


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