Washington, DC – Venture capitalists invested $7.0 billion into U.S. companies during the second quarter, up $1 billion from the previous quarter but down $1 billion from the same time in 2011, according to a new report from PricewaterhouseCoopers and the National Venture Capital Association (NVCA), based on data provided by Thomson Reuters.
“If funding levels in the second half of the year remain consistent with the first half of the year, VC investing in 2012 will fall short of the nearly $30 billion invested in 2011 but will exceed the $23 billion invested in 2010,” said Tracy Lefteroff, global managing partner of the venture capital practice at PwC US. “Software and Internet companies continue to be attractive industries for VCs since most of these companies tend to be capital efficient and don’t require large amounts of capital to operate.”
The software industry received the highest level of funding for all industries with $2.3 billion – the highest total for the sector since the second quarter of 2001. Life sciences investing, meanwhile, declined for the fourth straight quarter, most notably in the biotechnology sector.
This article was also published in Potomac Tech Wire.
PricewaterhouseCoopers – media summary