Software Biggest Winner of Venture Capital
The software sector captured 50% of the VC investments in the first quarter according to the latest MoneyTree report, the quarterly study of venture capital investment activity in the US, followed by the biotech and green energy sectors.
Investments were up slightly in the first quarter, at $5.9 billion – the first time in four years since the dollar amount invested in Q1 were greater than Q4. That said the number of deals invested in was down to 736 nationwide – the lowest quarterly number since Q3 2009.
Software was the leading recipient of dollars with $1.1 billion invested in Q1 and the leader in number of deals funded at 187; these are both small decreases over last quarter. (more…)
Information Technology Trends
Hot Companies, VC Bets
Yesteryear’s top bets
VentureBeat’s top 10 VCs in 2010 included hot companies Twitter, Zynga, and Groupon. This creamy top ten included only one non-web/digital-media company: Boston-Power, maker of EV and Grid lithium-ion batteries.
Software was the single biggest benefactor in 2010 according to The PwC MoneyTreeTM Report Q4 2010/Full-year 2010. Life Sciences (biotech and medical devices) took nearly 1/3rd of the VC market. CleanTech grew significantly taking with five of the top ten deals in 2010 attracting 17% of VC dollars; the same percentage was invested in internet-based companies.
IT Services, Tele¬communications, and Media & Entertainment all saw big dollar increases in 2010 as venture capital investment rises for the first time since 2007.
This year’s top 50
2011’s Wall Street Journal’s most likely to succeed US-based VC-funded companies shows a similar bent. The second annual “Top 50 Venture-Backed Companies” picks are based on the capital raised, the experience and track record of the talent and investors, and have a valuation of $1b or less. The winners are in Information Technology (23 out of 50), Business & Financial Services (12), Health Care (8), and Consumer Services (6). (more…)