Venture Capital deals in the third quarter of 2011 dropped 12 percent in dollars invested compared to last quarter. Clean technology and life sciences industries were particularly hard hit, according to a report released today by PricewaterhouseCoopers and the National Venture Capital Association.
“Public policy challenges in the life sciences and clean technology sectors are impacting investment levels this quarter as is the IPO market that basically came to a screeching halt in August,” explained National Venture Capital Association president Mark Heesen in a statement.
The venture capital industry is often reflective of how the markets are doing, according to Heesen, though it does support company, product and job creation. Along with the drop in dollars invested, the number of deals made also decreased 14 percent to 876 completed deals, down from the 1,015 in quarter two 2011.
Clean technology fell in line with the overall venture capital economy, a 13 percent drop in dollars invested, totaling at $891 million. Last quarter the investors spent $1 billion on the industry.
But while green wasn’t great, the software industry did better — it topped all industries in dollars spent and deals completed. Software had a 23 percent increase in dollars at $2 billion, where last quarter the industry saw 1.6 billion. Software deals completed, while at the top this round, actually dropped 1 percent from last quarter, reflecting that even an industry’s success in one quarter is still subject to the whims of the market.
The full report by MoneyTree from PricewaterhouseCoopers and the National Venture Capital Association outlines the venture capitalist markets overall.
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