News Column

Venture Capital Investments in US Rise

April 15, 2011
Flying money

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 Friday.

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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Source: Copyright 2011 dpa Deutsche Presse-Agentur GmbH


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