Venture Capital Investments Experience Increases in Dollars Invested and Number of Deals in 2010
PwC Money Tree Survey notes this is first year that venture capital investment levels went up since 2007.
Close to $22 billion and 3,280 deals were made in the venture capital markets, an increase of 19 percent and 12 percent, respectively, compared to 2009. According to the PricewaterhouseCoopers/National Venture Capital Association Money Tree Report for 2010, the leading industry sectors for funding include: Software ($4 billion), Biotechnology ($3.7 billion), and Industrial/Energy ($3.3 Billion). Medical Devices & Equipment was the only sector to experience a decline in dollars invested ($2.5 billion to $2.3 billion) for the same period.
When looking at investments by stage of development, Start Up/Seed capital investments declined slightly (-2%) from 2009 to 2010, with Expansion stage financing surging 47% in dollars for the same period. Early Stage also experienced a double-digit increase in finance activity (+15%).