Q3 Venture Deals Regain Some Lost Altitude, With $6B Invested Nationwide

Bruce V. Bigelow10/13/09Comments (2)Follow @bvbigelow

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venture investments (in order) were healthcare, the Internet, and telecom and mobile communications. Some other highlights:

—Healthcare: this sector showed the most third-quarter venture activity and garnered 32 percent of all VC investments nationwide. But in absolute terms, the $1.9 billion invested in healthcare was flat compared to the previous quarter this year. Most of the funds went to medical devices (39 percent) and drug development companies (28 percent), and VC investments in the sector were evenly distributed from early stage through late-stage companies.

—Internet: Early-stage investments in Internet startups accounted for 40 percent of the 194 deals nationwide in the quarter, and 21 percent of the $1.05 billion invested.

—Mobile & Telecom: Early-stage startups accounted for 28 percent of the 52 deals during the quarter. Investments in mobile software and services accounted for just over half of the deals but only 14 percent of the $802 million in VC dollars. Conversely, VC funding for towers and infrastructure represented just 2 percent of deals but 45 percent of the money invested.

—Green: California got 77 percent of just under $1 billion invested in “green” startups, which ChubbyBrain defines as covering everything from wind, solar, and other renewable energy technologies to industrial pollution and environmental controls to smart grid technology.

Bruce V. Bigelow is the editor of Xconomy San Diego. You can e-mail him at bbigelow@xconomy.com or call (619) 669-8788