$4.8B in Venture Capital Invested in3Q

In the third quarter of 2009, venture capitalists invested $4.8 billion in 637 deals according to the quarterly MoneyTree Report.  The biotech and clean technology sectors received the highest levels of investments with biotech investments equaling $905 million in 104 deals, and clean tech investments accounting for $898 million in 57 deals.  

This shift in investment to industry sectors that require multiple funding rounds for an extended period of time may indicate a gradual transition towards a longer-term strategy for venture capitalists according to Mark Keesen, president of the National Venture Capital Association. He said that companies in such sectors require significant capital, often over 10-12 years, which means a longer time toward a successful exit. 

“This is not to suggest that the venture capital industry will abandon short-term IT investment,” he says.  “Rather the mix of investments will become more balanced.”  

For more details, see the story in Pittsburgh Business Times.