Q1 Venture Capital Funding Close to Pre-Recession Levels
Spring is here an the air is ripe with opportunity — especially for startups. If you’re an entrepreneur searching for funding, this could be year. According to private investment research firm CB Insights, the first quarter of the year saw funding levels almost matching pre-recession levels. In fact, there was $7.5 billion of venture capital funding invested in 738 deals which is great news for startups and a little worrisome for analysts who fear that we may be on the verge of another Internet bubble.
Bubble fears aside, CB Insights quarterly report provides some really good leads on where to sniff out funding. New York is keeping up its tech momentum overtaking Massachusetts for the top tech investing spot with 261 tech deal and $1.6 billion in funding. However is particular about its tech. VC Deals and Investment Dollars are neck and neck at 60 and 59 percent respectively in favor of Internet-based startups. Computer hardware and services drew the second largest amount of investment dollars at 18 percent. Non-Internet or mobile software investments and deal only received one percent of the VC pie.
California, of course continues to be the dominant state for Internet investing with 42 and 45 percent of the VC deals and dollars. Illinois made an impressive showing thanks to Groupon’s rising popularity.
Internet was also the name of the game for California, Texas and Washington. Massachusetts deviated from the course with healthcare taking the lead in both VC deals and dollars.
Speaking of healthcare, aside from Massachusetts, healthcare took a 13 percent decline overall. Clean/Green tech was on the upswing last quarter with deals and investment dollars up 45 and 145 percent respectively. California was the forerunner in ecofriendly tech funding with 75 percent of the Green/Clean tech funding. Early stage funding continued its strong showing, accounting for nearly 50 percent of total deals.
To read the rest of the report, please click here.
Category: Entrepreneur, Featured | Tags: CB Insights, Entrepreneurship, Venture Capital
About the Author Sherri is a freelance writer that has a love of all things fun and geeky including gadgets, gaming, anime, and comics. When she isn't writing or out on the town living it up, she loves doing 10-12 hour marathon sessions on her Xbox 360 or one of her older consoles. It's not an addiction, it's a way of life!
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