$5.8 bln of venture capital invested in US in Q4 2006

The amount invested by venture capitalists in the US in Q4 2006 was approximately $5.8 bln. Although this amount was approximately 15% less than the amounts invested in Q3 2006 and Q2 2006, it fell solidly within the $5-7 bln quarterly range seen since the end of 2003. Overall the amount invested by venture capitalists in the US in 2006 was up approximately 8% over 2005. Acquisitions of venture backed companies in the US fell in Q4 2006 with 75 transactions totaling $7.3 bln, compared to 112 transactions totaling $7.7 bln in Q3 2006. However 2006 in general was the best acquisition year for venture backed companies since 2000, both in terms of aggregate amount paid ($31.2 bln) as well as median amount paid per transaction ($52 mln). IPOs of venture backed companies improved noticeably in Q4 2006, with 18 IPOs raising $1.2 bln in Q4 2006. 2006 was the second best IPO year since 2000, with 56 venture backed IPOs raising $3.7 bln, FenWick & West says.