According to statistics released today by Dow Jones VentureSource, the fourth quarter of 2009 was a strong one in light of an overall bad year for venture deal activity in the United States.
In Q4 2009, investors put $6.3 billion to work in 743 deals, up slightly from the $6.1 billion invested in 619 deals during the same period in 2008. In total, last year saw 2,489 deals completed and $21.4 billion in venture capital invested in U.S. companies, a 31% drop from 2008 when $31 billion was invested in 2,817 deals.
We also remarked earlier that we’d seen an uptick of venture funding deals in the fourth quarter of 2009, based on analysis of data available in our own CrunchBase.
Scott Austin, editor of Dow Jones VentureWire said: “While venture capitalists as a group loosened their purse strings toward the end of 2009, some start-ups, especially those seeking first or second rounds, may be in for a rude awakening in 2010. A large share of companies are due for capital this year and the competition will be fierce.”
“Venture capitalists are still treading lightly when making investments,” added Jessica Canning, global research director for Dow Jones VentureSource. “In the fourth quarter, venture deal activity returned to levels seen before the collapse of the financial markets, but capital invested continued to lag as investors gave companies just what they need to reach the next milestone.” (more…)