No surprise given the sluggish economy, but venture capital (VC) funding for U.S. startup companies remained flat in the second quarter. According to PricewaterhouseCoopers (PWC), venture capitalists invested $7.4 billion in 990 deals.
But even with the sour markets, PWC believes VC funding is on pace to hit $30 billion by the end of 2008, close to the $31 billion invested last year. Although VC funding in early-stage startups slipped in the second quarter, VCs stayed committed to late-stage start-ups. Software is still the top sector with $1.3 billion in VC funding for 219 deals. But clean tech continues to grow with a quarterly record of $884 million for 65 deals.
VCs remain cautious with the housing market and banking collapse. Only five venture-backed companies went public in the first quarter of 2008, and none went public in the second quarter. "I don’t see anything that’s really going to turn this around quickly," said a PWC spokesman.
Article published on July 29, 2008
|If you like this article, please share it:|