Venture Capital Investment Rises in 2Q

Growth pegged between 15 and 30 percent
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NEW YORK: Venture capital investment in U.S. companies ticked up in the second quarter after scraping the basement during the first three months of the year. PEHub reports that $3.7 billion was invested 612 U.S.-based companies, a 15 percent improvement over 1Q VC investment of $3.19 billion--reported to be the lowest in 11 years. PE’s figure is from MoneyTree, a partnership of PE parent Thomson Reuters. The figure proffered last week by the Dow Jones Venture Source was $527 billion invested in 595 deals, a 32 percent improvement over 1Q.

Either way, venture capital investment appears to have rebounded slightly from 1Q. By the same measure, it remained abysmal compared to 2Q08, when VCs put $8.33 billion into 726 companies, according to Venture Source.

MoneyTree said Internet technology companies led with $1.72 billion, followed by life sciences with $1.53 billion. The largest VC deal during the quarter involved Clovis Oncology of Boulder, Colo., which raised more than $146 million. ExactTarget, an e-mail-tracking marketer in Indianapolis, raised nearly $70 million.

Activity was heaviest in Northern California, likely reflecting IT investment. New England was next, followed by a three-way tie among Southern California, the tri-state New York area, and the Rocky Mountain states.

More TVB VC coverage:
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September 25, 2008: “Verimatrix Scores $20 Million
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September 25, 2008: “Inlet Scores $10 Million
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