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Summary:

A growing number of early-stage deals and general optimism in the technology industry helped push venture capital investments up 14 percent in the third quarter of this year, to $6.1 billion from $5.3 billion in the prior quarter, according to a report released today from ChubbyBrain, […]

q3vcdataA growing number of early-stage deals and general optimism in the technology industry helped push venture capital investments up 14 percent in the third quarter of this year, to $6.1 billion from $5.3 billion in the prior quarter, according to a report released today from ChubbyBrain, a information services company that tracks VC activity. This should be viewed as good news for entrepreneurs who are currently looking to raise capital for their startups in coming months.

VC Highlights of Q3 2009
Series A Internet deals on an average received $3.4 million while venture-backed seed investments were around $1 million.
More than 70% of (mobile and telecom) funds went toward startups building towers & infrastructure (45%).  Telecom Devices & Equipment received 26% of the total funds with average deal size of $15M.
The average mobile & telecom Series A deal was about $2.3 million.
There were 66 total Series A Internet venture capital deals up from 61 in Q2 2009 and 20 during Q1 2009.
In New York, investments fell 41% to $227 million. Source: Chubby Brain Report for Q3 2003.

In a quarter that saw Twitter receive $100 million and Tesla Motors pull in $82.5 million in funding, a total of 680 deals worth $6.056 billion closed, with 40 percent of the quarter’s deals taking place in September. Early-stage companies accounted for about 30 percent of deals done in the third quarter.

q3vcdata2Investment in Internet companies was $1.05 billion while the mobile and telecom sector pulled in $800 million in VC money. Cleantech companies received  just under $1 billion in funding. Katie over at Earth2Tech recently covered the venture capital investment trends, including the recent rebound.

So how were investment dollars dispersed geographically? The chart that follows says it all.

deal distribution by region q309

Funding in California-based startups rose to $3.43 billion in the third quarter from $2.27 billion in the previous one, an increase of around 51 percent. Including the Twitter, Tesla and Solyndra deals that took place last month, California was home to eight of the 10 largest VC deals in the U.S. during the third quarter.

q3vcdata1

Graphics courtesy of Chubby Brain.

  1. We’ve been pulling together VC data from the NVCA and European sources into a report on current VC activity over at Timetric – http://timetric.com/labs/venture/. Their numbers differ a bit from ChubbyBrain, but what’s clear is that fundraising is way down even as investment recovers. There’s a vast overhang to spend through, though – tens of billions of dollars!

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  2. [...] VC Investment Climbs 14% to $6.1B in Q3 (tags: vc startup) [...]

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  3. [...] – “VC Investment Climbs 14% to $6.1B in Q3” by Jennifer [...]

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