Venture capitalists in the U.S. increased
their investments by five percent in the first quarter of 2011, but
focused their funds on fewer companies, according to a study released
The MoneyTree report by PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA) pegged investments in the quarter at $5.9 billion, compared to $5.6 billion in the previous quarter. But the number of companies receiving the funding fell by 11 percent to 736.
Software companies received the most investment with $1.1 billion invested, a 9 percent decrease over the quarter, while industrial and energy startups attracted $1 billion. Startup companies involved in the clean-tech field also received about a billion dollars in investments, the report found.
"The first quarter investment total is setting us on a path for a solid level of investing in 2011. While we did see a drop in deal volume, the dollars invested remains strong," noted Tracy Lefteroff, global managing partner of the venture capital practice at PwC US.
"This is a clear indicator that VCs are seeing innovative companies walk through their doors and that the entrepreneurial spirit of America is alive and well and thriving."
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