Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Nothing Ventured, Nothing Gained


Levels of investment capital stable despite sluggish economy.


Venture capitalists invested $7.4 billion in 990 deals in the second quarter of 2008, as compared with $7.5 billion in 977 deals during the first quarter, the National Venture Capital Association and PricewaterhouseCoopers report.

When the broad market stabilizes, this is likely to mean a steady stream of quality IPOs.

"The relatively stable level of investment this quarter across a broad swath of industries and all stages of development [shows] that there are no shortages of opportunities for innovative companies," says Mark Heesen, president of the National Venture Capital Association, a trade organization in Arlington, Virginia.

While clean technology didn't receive the most funding in the second quarter, the two largest deals -- $132 million and $115 million -- were in this sector.

Overall, clean technology, including alternative energy, pollution abatement, recycling, power supply and conservation, received an all-time quarterly venture capital funding high of $883.6 million for 65 deals.

This is about what you'd expect given the recent run-up in the price of oil. A barrel of oil recently traded at $129.94 on the New York Mercantile Exchange. The price hit a record $147.27 a barrel on July 11th.

Second-quarter venture capital investment in 219 software deals totaled $1.25 billion, underscoring the continued strength of technology.

Internet companies received $1.5 billion for 238 deals. The second quarter marked the fourth consecutive quarter with more than 200 Internet-related deals receiving venture capital funding - the highest quarterly level of Internet investing since 2001.

Life sciences, including biotechnology and medical devices, remain strong, with $1.9 billion invested across 209 deals.

The industrial and energy sectors received $1.2 billion for 89 deals.

Media and entertainment investments totaled $586 million for 110 deals.

The semiconductor industry received $328 million in venture capital funding for 39 deals, the lowest level since the fourth quarter of 2001.

"Despite the turmoil in the markets, the pace of investing in the first half of 2008 indicates that venture investing is on target to reach the $30 billion level this year, putting it on par with 2007 when $30.7 billion was invested, says Tracy Lefteroff, global managing partner for venture capital at PricewaterhouseCoopers.

Take heart, investors: Intel (INTC), Apple (AAPL) Microsoft (MSFT) and Cisco (CSCO) were once startups.

< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos