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.

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