Q3 2010 Venture Capital Activity – $5.4B into 715 Deals

CB Insights released data last week on venture capital investments in private companies, reporting a total of $5.4 billion of venture capital funding over 715 deals in the quarter that ended September 30, 2010. While overall dollar volume is down, the CB Insights Venture Capital Activity Report shows that the number of deals is up, especially seed-stage deals.  From 1% of deals in Q3 2009, seed-stage investments grew to 11% in Q3 2010, indicating a “healthy early-stage investment environment.” Other highlights of the report: California, Massachusetts and New York captured 57% of the deals and 63% of the funding in Q3 2010, down slightly from the previous quarter. Health care was the single largest sector by dollar volume, with $1.75 billion invested in 184 deals in Q3 2010, up from $1.63 billion invested in 138 deals in Q2 2010. Cleantech funding totals saw a large drop given the absence of VC mega-deals (i.e., deals over $100 million).  Cleantech deal volume was up, however, due to an increase in seed-stage deals and a 300% increase in green/environmental software (smart grid) compared to Q2 2010. This post on Venture Capital was authored by Jonathan Shapira.

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