US venture capital endures difficult third quarter, renewable energy investment stalls

19 October 2009

Following an uptick in the second quarter, investments in US venture-backed companies have stalled in the third quarter, putting 2009 on track to be the worst investment year since 2003, according to new data from industry tracker Dow Jones VentureSource. Venture capitalists invested $5.1bn in 616 deals in the third quarter of 2009, down six per cent from the $5.4bn put into 595 deals during the second quarter of this year.

This quarter’s total is down 38 per cent from the $8.2bn invested in 663 deals during the third quarter of 2008.

The energy and utilities industry raised just $415m in 23 deals during the third quarter, down 70 per cent from the $1.4bn invested in 34 deals during the same period last year. Investments in the third quarter were up over the previous quarter which saw $310m invested in 27 deals in the sector.

Investment in the renewable energy sector fell substantially as 14 deals raised $343m, 73 per cent less than the $1.3bn invested in 23 deals during the same quarter last year.

Copyright © 2009 NewNet

Tags: venture capital

This story was published on Monday, October 19th, 2009 at 10:08 am and is filed under North America, deals, knowledge. You can follow any responses to article entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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