Venture Capital deals drop across the board, clean tech hit

15 Nov

Venture Capital deals in the third quarter of 2011 went down 12 percent in dollars invested when compared to last quarter. The report, released on last month, by PricewaterhouseCoopers and the National Venture Capital Association says that clean technology and life sciences industries were particularly hard hit.

Mark Heesen, President of National Venture Capital Association, detailed, “Public policy challenges in the life sciences and clean technology sectors are impacting investment levels this quarter as is the IPO market that basically came to a screeching halt in August”. The venture capital industry is often the same of how the markets are doing, according to Heesen, though it does support company, product and job creation. Not only the dollars, but also the number of deals made also went down 14 percent to 876 completed deals, down from the 1,015 deals in quarter two, 2011.

Clean technology agree on with the overall venture capital economy, a 13 percent drop in dollars invested , totaling at $891 million. The investors spent $1 billion on the industry in last quarter. Yet while green was not great, the software industry did better- it outranked all industries in dollars spent and deals completed. Software had a 23 percent increase in dollars at $2 billion. The industry had only 1.6 billion last quarter. Software deals completed, while at the top this round, actually dropped 1 percent from last quarter, reflecting that even an industry’s success in one quarter is still subject to the whims of the market.

The full report by MoneyTree from PricewaterhouseCoopers and the National Venture Capital Association stories the venture capitalist markets overall.

Source: venturebeat

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