Venture Capital

by Mike Masnick




VC Funding Dropped... Or Did It?

from the maybe,-maybe-not dept

If you talk to most people in the startup and venture investing world over the past few months, it's certainly seemed like venture investing was taking off again. More companies were getting funding, and for more competitive prices -- even leading to some extreme investments. So, that's caused a lot of head scratching now that the latest Moneytree numbers suggest reduced VC funding in money and deals done during the first quarter of the year. There are a few interesting theories however. Early stage financings definitely increased -- and those are often for smaller amounts of money. Considering that those deals take just as much time (if not longer) than later stage financings, those early stage deals may have had an impact on the overall money raised last quarter. Also, it appears that health care related deals are down, suggesting that it might just be in more traditional technology fields where the investment was focused. However, the most interesting theory is simply that VCs may not be telling anyone about investments they're doing. Even though Moneytree lets people submit the deals without revealing the details, it's believed that some VCs simply aren't reporting certain deals at all, preferring to wait until a later date to reveal the companies they've funded.

Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here
Get Techdirt’s Daily Email
Use markdown for basic formatting. HTML is no longer supported.
  Save me a cookie
Follow Techdirt
Special Affiliate Offer
Anonymous number for texting and calling from Hushed. $25 lifetime membership, use code TECHDIRT25
Report this ad  |  Hide Techdirt ads
Advertisement
Report this ad  |  Hide Techdirt ads
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Chat
Advertisement
Report this ad  |  Hide Techdirt ads
Recent Stories
Advertisement
Report this ad  |  Hide Techdirt ads

Close

Email This

This feature is only available to registered users. Register or sign in to use it.