Annual Venture Investment Dollars Decline For First Time In Three Years, According To The MoneyTree Report

(PRWEB) January 18, 2013

Venture capitalists invested $ 26.5 billion in 3,698 deals in 2012, a decrease of 10 percent in dollars and a 6 percent decline in deals over the prior year, according to the MoneyTree Report by PricewaterhouseCoopers LLP and the National Venture Capital Association (NVCA), based on data from Thomson Reuters. For the fourth quarter, venture investment of $ 6.4 billion into 968 companies fell 3 percent in dollars, but rose 5 percent in deal volume over Q3 2012.

Double-digit decreases in investment dollars across most industries, specifically the traditionally capital-intensive Clean Technology and Life Sciences sectors, offset the increases seen in the Software sector in 2012. Additionally, stage of investment shifted from Seed to Early Stage in 2012 as venture capitalists overall began engaging with companies later in their life cycle than in previous years.

“We continue to see the impact of public policy on venture capital investment levels in very specific ways, said Mark Heesen, president of NVCA.

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