Summary:

Where are venture capital dollars going these days? A new report suggests that they’re heading disproportionately to software and biotechnology companies.

Golden piggy bank
photo: Shutterstock / Kristijan Zontar

Venture capitalists invested $6.7 billion in 913 deals in the second quarter of 2013, marking a 12 percent increase in funding and 2 percent increase in deals over the first quarter, a new report finds.

The data comes from The MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association, based on data from Thomson Reuters. The new report indicates growth in investments in internet and biotechnology companies, and looks at several trends in how venture-backed companies did over the past quarter.

The report, which will be posted online here, follows similar reports from other analysts this week about the state of venture capital this past quarter. CB Insights found that funding had decreased compared to Q2 of the previous year, but this report found some upticks over Q1 of 2013.

Here are a few interesting points from the report about where the dollars are headed:

  • Which were the top deals of the quarter? They included Fab’s $150 millionBloom Energy’s $130 million, Twilio’s 70 million, Eventbrite’s 60 million, Roku’s $60 million, Lyft’s $60 million,and Snapchat’s $60 million.
  • The software industry saw the greatest investment ( $2.1 billion)  this quarter, followed by the biotechnology industry ($1.3 billion). Software investments dropped seven percent from the previous quarter, and biotechnology saw a rise of 41 percent (in terms of money invested, not number of deals), over the prior quarter.
  • Internet companies got $1.9 billion in investments this quarter, a rise of 39 percent over the previous quarter. (And out of the 10 largest deals of the quarter, five came from internet companies.)
  • The CB Insights report earlier this week noted a slight increase in clean tech funding this quarter after several quarters of declines, but this report said the sector had the lowest number of deals since 2006, and a six percent decrease in funding over the prior quarter.
  • This report breaks funding into seed-stage and early-stage investments, with seed stage dropping 34 percent in dollars and 29 percent in deals over the previous quarter, and early-stage investments up 63 percent in dollars and 18 percent in deals. And the combined stages made up 57 percent of deal volume this quarter, compared to 51 percent in the first quarter of 2013.

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