$5.4 bln of venture capital invested in US in Q4 2008

US VC investments in the US totaled $5.4 bln during Q4 2008, according to PriceWaterhouseCoopers, the National Venture Capital Association and Thomson Reuters. This compares to the $8.1 bln invested in Q4 2007 and is the lowest quarterly level of venture investments since Q1 2005. Fourth-quarter investments went to 818 companies, down from 1,051 in Q4 2007. Investments in software companies dropped to their lowest level in 10 years, as $1 bln was sunk into 194 companies. In Q4 2007, 245 software companies received $1.4 bln in investments.

73% of VCs think their revenues will stay the same or grow in 2009

Less than 20% of VC portfolio poised for exit in 2009 as IPO market recovery not seen for at least a year; M&A activity seen increasing as valuations drop. In polling 270 venture capitalists, corporate buyers and entrepreneurs, KPMG found that 73% of respondents expect their firm’s revenue to stay the same or increase in 2009. In fact, 52% expect revenue growth to increase, including 37% who predict revenue growth in excess of 10%. Only 26% see declining revenues in the year ahead. KPMG conducted the survey in collaboration with AlwaysOn, the venture capital new media organization. Venture capitalists expect the negative IPO trend to continue in 2009, with 88% of respondents expecting IPO activity to stay the same or to decline further. Additionally, 82% of venture capitalists surveyed indicated that they do not anticipate recovery in the IPO market for at least 12 months. The outlook on IPO activity has clearly impacted venture capital exit opportunities, and 80% of respondents said less than 20% of their portfolio is poised for exit in 2009.

$2.4 bln of venture investments went into health care in Q2 2007

US venture investment in health care continued to be strong with $2.4 bln of total investment, of which $1 bln went to medical device companies, the highest total on record for that segment of the health care industry. IT investment also continued to be strong with $4.1 bln invested, with information service companies (which includes Web 2.0 companies) receiving close to $1 bln, a substantial increase for that industry segment, Fenwick & West survey says.

Cleantech spending up 14% in 2007

Spending on the development of new energy and environmental technologies is projected to grow by 14% in 2007 to exceed $55 bln worldwide, with corporate and government spending up 10% and venture capital on track to double.

Top venture capital companies for healthcare sector

Healthcare Corporate Finance News published a list of top venture companies investing into healthcare sector.

Venture investing in healthcare sector

Venture capital firm Deals
Alta Partners 8
Canaan Partners 6
Sofinnova Ventures/Sofinnova Partners 6
ARCH Venture Partners 5
Domain Associates 5
Pequot Ventures/Capital 5
New Enterprise Associates 5
Novartis BioVentures/Novartis Venture 5
Three Arch Partners 5
Versant Ventures 5
Advent Venture Partners 4
Asset Management Company 4
Bay City Capital 4
Frazier Healthcare Ventures 4
Novo A/S 4
Source: Healthcare Corporate

Venture investments in healthcare sector

Healthcare Corporate Finance News published a list of venture investments into healthcare companies.

Healthcare venture investments in Q1 2007
Sector Deals Amount
Biopharmaceuticals 23 $727.4
Medical Devices 43 $726.1
Pharmaceuticals 19 $660.4
Biotechnology 27 $392.9
Health Care Services 9 $197.1
e-Health 9 $52.3
Other 4 $48.0
Total 134 $2,804.2
Source: Healthcare Corporate

$8.2 bln of venture capital invested into healthcare companies in 2006

Venture capital investment in US health care companies was up solidly in 2006 compared to 2005 ($8.2 bln vs. $7.4 bln). Health care’s share of total US venture investment increased slightly from 31% in 2005 to 32% in 2006. US medical device/equipment companies raised approximately $2.6 bln in 2006, the best year ever for that sector.

$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.

$8.25 of venture capital invested into healthcare companies in 2006

Healthcare companies had another good year, with venture investment increasing to $8.25 bln, up 12% over 2005, and the industry accounting for 28 of the 56 IPOs. Information services (which includes Web 2.0 companies) also had a good year with investment increasing to $2.4 bln, up 27% from 2005. Alternative energy had a substantial increase in activity with investment at $537 mln being close to three times higher than 2005, Fenwick & West says.

$2.9 bln of VC money invested into cleantech

Cleantech Venture Network reported that North American VC investment in the cleantech category totaled a record $2.9 bln for 2006, representing a 78% increase over 2005 cleantech investment of $1.6 bln, and a 140% increase over 2004 investment of $1.2 bln. About $613 mln was invested in cleantech in Q4 2006, a 22% increase over the Q4 2005 investment of $502 mln. The Q4 2006 was down from the record invested in Q3 2006 of $933 mln. Energy-related investment accounted for $2.1 bln, or 74%, of the total 2006 cleantech venture investment. This represented a 1.9x increase over the $739 mln invested in the energy category in 2005 and a 2.9x increase over 2004 energy investment. The Energy Generation segment totaled $1.3 bln, a 2.1x increase from 2005. Energy Storage attracted $354 mln, representing a 2x increase over 2005.