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Venture Capital Investment Rises in 2Q

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:
May 1, 2009: “Web Video Ad Broker Gets $12 Million C Series”
FreeWheel, a company that brokers revenue-shares in the online video arena, closed $12 million in Series C venture capital funding this week. The round led by Foundation Capital and existing investor Battery Ventures. Ashmeet Sidana of Foundation Capital joins FreeWheel’s board of directors with this round.

September 25,2008: “Verimatrix Scores $20 Million”
Verimatrix, a San Diego company specializing in content security technology for pay TV, closed on $20 million in venture capital funding provided by JK&B Capital of Chicago. Goldman Sachs and SunAmerca Ventures.

September 25,2008: “Inlet Scores $10 Million”
Inlet Technologies, a Raleigh, N.C. maker of video encoding technology, said it nailed down $10 million in Series C venture financing. Investors include Core Capital Partners, Technology Venture Partners, Telecommunications…