• Q3 2009 saw venture capital activity hit $6.1B spread across 678 deals – the highest total of 2009. It represented a 14% increase over Q2 2009 when VC investment was at $5.3B.
• Q3 2009 does not compare favorably to Q3 2008 when VC investing was $7.2B. Whether venture investing will reach historic levels again is an open question. However, based on the significant uptick in the last 2 quarters, there is room for cautious optimism.
• September 2009 saw the highest monthly venture capital deal activity representing 40% of the funding in the quarter.
• California continued to dominate venture capital investing attracting over $1.1 billion more VC money than it did in Q2 2009. Rounding out the top five most funded states were Massachusetts, Texas, New York, and Georgia.
• From a regional perspective, the South-Atlantic made a particularly strong showing. Not conventionally considered a VC hub on par with the Mid Atlantic or even the Pacific Northwest, it nevertheless outpaced both of these regions in Q3.
• New York State’s venture capital funding tumbled 41% in Q3 2009 versus Q2 2009.A big part of this was a drop in Internet deal volume in New York which fell by 32%.
• Healthcare, the big winner in Q2 ‘09, again saw the most venture activity in the third quarter, attracting 32% of all funds. In absolute terms, however, the investment level remained flat at $1.9 billion.
• Q3 2009 (and especially September) once again began to paint a more optimistic picture for clean & green tech investments, leading the road to recovery were investments in renewables, in particular solar.
• Despite predictions that VC firms would squirrel away money to fortify existing portfolio companies, the ChubbyBrain data for Q3 2009 shows that venture-backed seed and Series A deals in early stage companies remain strong. Q3 2009 saw early stage deals account for 30% of the total venture deals being done.
Further commentary, analytics and associated graphs & charts for Q3 2009 venture capital funding can be found here: http://www.chubbybrain.com/
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ChubbyBrain (http://www.chubbybrain.com) is capturing and structuring information about the innovation economy: a world that includes high-growth, private companies, venture capital firms, private equity firms, angel investors, incubators and universities. The company's goal is to cater this information to meet the growing needs of entrepreneurs, investors, corporations, service providers and governments.