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According to the report, $40 billion was invested in U.S.-based startups across all sectors during the past 12 months, compared to $36.2 billion during the year leading up to Aug. 31, 2007. The rounds got fatter, too, as there were 3,084 deals in the past year versus 3,219 in the previous period. Sector-wise, one of the biggest increases showed up in utilities, which nearly tripled to $2 billion in aggregate investment. Europe was a different story altogether. Despite a small increase in the number of deals, aggregate investment across sectors shrank nearly 5%, to $13.03 billion during the past 12 months. Some of the most marked decliners were the financial and healthcare sectors. The energy sector saw a decent increase in both the U.S. and Europe, as it was likely spurred by the rush of cleantech investments. The report didn't have anything particularly great to say about the public markets, not surprisingly. For the past eight months, the majority of technology companies' stock valuations have remained unchanged or decreased by up to 15%. Some other stats from the report:
Comments
From: Olaf,
Marc - Unfortunately the report didn't break down the stages of fundings. That would have given us an even clearer picture of any developing funding gap. Also, I'm pretty sure the report doesn't include angel funding, which wouldn't have changed the numbers too much but obviously is an important factor in getting young companies off the ground. Thanks for the comment,
Posted on:
September 10, 2008 12:33 PM
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New data issued by the Capital IQ research and analysis division of Standard & Poor's points to a big disparity in the amount of venture capital European startups are attracting versus the U.S.
More money, less deals, the funding gap in the US is getting bigger. This is not going to help entrepreneurs trying to start their businesses, I see this as a flag that things are not improving when it comes to financing startups.
Meanwhile you mention that the number of European deals only decrease slightly while the total amount spent is 5% less. So I assume from what you say (there is no number here on this) that the funding gap would be decreasing in Europe, something good.
I wish we could see that trend in the US, it would certainly help entrepreneurship. With the economy as it is, it is time for the spreadsheet guys to give the entrepreneurs some room back...