Venture Surveys Show Nationwide Increase, More or Less, in Second-Quarter Investments

7/19/10Follow @bvbigelow

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venture deal—and there may be room for varying interpretations, for example, in how tranched venture investments get counted. Differences also arise in the way industry sectors are categorized. For example, renewable energy is included as part of the cleantech sector in the MoneyTree Report, but Dow Jones VentureSource categorizes renewable energy as part of its energy and utilities sector.

Some other observations from the data:

—CB Insights notes that three states, California, Massachusetts, and New York accounted for 65 percent of the deals and 70 percent of the venture capital that was invested during the three months that ended June 30. The Golden State alone accounted for 43 percent of the deals and 53 percent of the funding, with most of those deals and investments happening in and around San Francisco. Of the $5.9 billion and 612 deals that CB Insights counted during the quarter, California accounted for $3.06 billion and 264 deals.

—The biggest discrepancy among the reports involves investments and deals in the cleantech sector. The MoneyTree Report found that venture firms invested $1.47 billion in 71 cleantech deals nationwide during the second quarter. That’s double the $708.8 million that was invested in 70 cleantech deals during the first quarter of 2010—and breaks the quarterly record for cleantech funding, according to MoneyTree. But CB Insight reports that cleantech funding dropped 20 percent from the first quarter and the deal count sank by 35 percent. CB Insight found $1.05 billion was invested in 55 cleantech deals during the quarter, which isn’t that far off from MoneyTree’s numbers. But in the previous quarter CB Insight said more than $1.3 billion was invested in 85 cleantech deals.

—The MoneyTree Report and Dow Jones VentureSource agreed on one thing—the single biggest venture deal of the quarter was the $350 million that venture firms invested in Better Place, a Palo Alto, CA-based startup developing batteries and charging stations for electric vehicles. Dow Jones said the investors include HSBC Bank, Maniv BioVentures, Morgan Stanley, and VantagePoint Venture Partners.

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

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