Software Leads the Funding Pack Q1 2012

Tech Trends


The latest MoneyTree™ Report shows that of all the Venture Capital industries, Software leads the pack in garnering VC investment. At $1.6 billion dollars of investment this first quarter, the industry raised almost 20% less than last quarter’s $2 billion. The most deals to be completed category also goes to the Software industry, at 231 rounds for a 12 percent decrease over 2011’s 262 rounds in the last quarter.


This quarter’s second place winners in dollars invested were the Biotechnology and Industrial/Energy sectors in a near tie at $780 million and $778 million respectively. In terms of first-time rounds in the first quarter, companies in the Software, Media & Entertainment, and the IT services industries received the most.


Clean Technology – which crosses over traditional MoneyTree industries, includes alternative energy, pollution and recycling, power supplies and conservation – garnered $951 million in 73 deals, down 30 percent in dollars and 11 percent in volume.


Ranking in the top ten deals of Q1 were two Internet-specific deals. Internet-Specific is a cross classification that is independent of an organization’s primary industry category. Investment in internet companies, those whose business model is fundamentally dependent on the Internet, continued at over $1 billion dollars per quarter, a trend that is in its eighth consecutive quarter. As compared with last quarter, investment in internet-specific deals was down 3 percent in dollar volume and down 23 percent in deal volume.


The geographic magnet continues to be Silicon Valley, where 36 percent of the $5.8 billion of U.S. investment landed. Second place was taken by New England, and third by LA/Orange County.



Information herein is drawn from the MoneyTree Report which is published on a quarterly basis. It is a look at the venture capital investment activity in the United States. The report is a co-production of PricewaterhouseCoopers and the National Venture Capital Association, based upon data from Thomson Reuters. Read the entire report on the PWC website.


About Redfish Technology:

Redfish Technology is an executive High Tech recruiter, the search firm works with a variety of companies from innovative start-ups to global Fortune 500. Through the dot-com and the dot-bomb, the company continues to recruit top talent in SaaS, Cloud, Digital Media, Mobile, Networking, e-Learning, Software, Unified Communications, and related ICT and High Tech sectors.

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