VC Funding Fell 22% in Q1, Upswing Could Be On the Way
Venture capitalists plowed $5.9 billion into startups in the first quarter of 2012, a 22% drop from the previous quarter and the lowest level of VC funding since Q2 2010, according to a researcher tracking the market.
However, that shortfall is not necessarily a worrying sign since Facebook’s recent $1 billion acquisition of Instagram may fuel a flurry of new activity, according to the researcher, CB Insights.
CB Insights’s report found there were a lot of deals in Q1 — 785 investments, which was the second most in the past nine quarters. But the dollar amount of those investments was relatively low, which accounts for the drop.
Read the rest of this article at Mashable
Category: Business | Tags: Business, funding, Mashable, report, Startups, Venture Captial
