VC Investments Hitting New Highs


[qi:053] PricewaterhouseCoopers and the National Venture Capital Association just released their VC investments data for the second quarter of 2007, which reinforces what most already know: funding is flowing like a river raging after a monsoon.

* Venture capitalists invested $7.1 billion in 977 deals in the second quarter of 2007, which is the highest level of deals reported in a quarter since Q3 2001.
* Based upon the first half of 2007 data, this year may see a new 6-year high in VC investments.
* $1.6 billion was invested in 378 seed/early stage deals in the second quarter compared, up from $1.3 billion into 289 deals in the first quarter of 2007. That works out to 39% of total deal volume.
* Internet-specific companies got $897 million (160 deals) in the second quarter down from the first quarter when $1.4 billion went into 177 deals.
* U.S.-based venture capitalists invested $408 million into 34 deals in China while 18 deals in India got $119 million.
* Big ticket investments in the 2Q 2007 included Calix Networks, Joost, and Telsima.


Hasan Luongo

Great to see the rise in deal flow to seed and early stage companies. The overall trend is not so surprising taking into consideration the industry wide build up of capital and consistent deal flow over the last five years.

An up tick in early stage and seed deals signals that VC’s are once again opening up to risk, which is exciting for all us startupers working on the next big thing.

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