U.S.-based companies raised $6.3 billion through 717 venture capital deals during the first quarter of 2012, an 18% decline in capital and 9% decline in deals from the same period last year, according to Dow Jones VentureSource. The median amount invested in a financing round fell 13% to $4 million in the first quarter of 2012.
“The declines were pretty evenly spread across industries so there weren’t any big winners or big losers in the quarter, but there were some surprises. Investment in consumer Internet companies fell after two exceptional investment years, while the IT industry fared well thanks to strong interest in software start-ups,” said Jessica Canning, global research director for Dow Jones VentureSource.
Some highlights of the report:
- Investment in Consumer Internet Companies Falls
- Only IT Industry Saw Deals and Investment Increase
- Biopharmaceuticals Investment Declines; Health IT Stays Strong
- Large Energy Deals Boost Investment Total
- Investment in Enterprise Start-Ups Slides
- Early-Stage Deals Garner a Larger Proportion of the Capital
Information technology (IT) was the only major industry that saw a year-over-year increase for both deals and capital raised. IT companies raised $2 billion through 257 deals, a 14% increase in capital invested and a 2% increase in deals. The software sector accounted for the largest proportion of IT deals as companies raised $1.3 billion for 196 deals, a 61% increase in capital raised and a 6% increase in deals.
The health IT sector remained small but solid thanks to interest in technologies that manage health information and data. Health IT companies raised $102 million for 18 deals in the first quarter, a 75% increase in capital and one more deal than was completed in the same period a year ago.
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