For the third quarter, total venture capital spending in the U.S. rose 12 percent to $7.8 billion compared to $7 billion for the previous quarter. Total number of deals rose five percent to 1,005 from 956 over the previous quarter, according to the latest MoneyTree tally from PricewaterhouseCoopers and the National Venture Capital Association.
Software, admittedly a very broad category, was hot, reaping more than $3 billion (the first time in 12 years it’s hit that mark) in 420 deals, a 23 percent increase from 342 deals the previous quarter. The lion’s share of the very biggest deals were in software.
The list of biggest VC raisers includes car-share service Uber Technologies (with $257 million raised from Google Ventures and TPG Capital), big data analytics player Palantir Technologies (nearly $197 million from undisclosed backers) and flash storage maker Pure Storage ($150 million from Fidelity Investments, Greylock Partners, Index Ventures and others).
If any category looks to be struggling — at least comparatively speaking, anyway — it’s the broad life sciences arena, which saw funding drop 25 percent, although the number of deals rose 3 percent. Clean tech — a category including alternative energy, recycling and pollution reduction — also struggled, with total deal money falling 20 percent over the last quarter to $297 million. The total number of clean energy deals was down 7 percent, to 40. This is the seventh consecutive quarter of declines for this category.
PricewaterhouseCoopers and the NVCA base their report on Thomson Reuters data.