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VC Dollars Rise Above Pre-Recession Level in MoneyTree’s Second-Quarter Survey

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the second quarter venture activity measured last week by the New York financial data firm CB Insights, which counted $7.6 billion in 768 startups nationwide. But unlike the MoneyTree Report, CB Insights showed a substantial increase in year-over-year dollars and deals. The data varies between the rival surveys because each firm relies on different sources, and uses different ways to count and categorize venture deals.

Some highlights of the MoneyTree data:

—Software was the biggest and busiest industry for venture capital during the second quarter, with $1.5 billion going into 254 deals, according to the MoneyTree Report. That was a 19 percent increase over the $1.3 billion that venture firms invested in software during the same quarter last year, with the number of deals relatively unchanged from 257 rounds done in the year-ago quarter. A comparison with the prior quarter looked better. The report said venture capital invested during the second-quarter was a 35 percent increase over the $1.1 billion invested, and a 25 percent increase over the 203 rounds completed during the first three months of 2011.

—Almost $1.4 billion was invested in a total of 189 Internet specific deals during the most-recent quarter. That was a 29 percent increase over the $1.05 billion invested in the same quarter last year and a 16 percent decline in the 225 deals.

—The MoneyTree Report counted $942.5 million and 81 deals in Q2 venture funding in the clean technology sector, a cross-category compilation that includes investments in alternative energy, pollution and recycling, power supplies, and conservation. That was a 36 percent drop from the $1.48 billion invested, and a 6.5 percent uptick from the 76 deals done in the same quarter last, according to MoneyTree data. It also was down from the prior quarter, when $1.2 billion was invested in 73 deals.

—Seed and early stage venture deals accounted for $2.4 billion and 464 deals during the quarter. The average seed deal was $3.2 million, up from $1.8 million in the first quarter. The average early stage deal was $5.8 million, down slightly from $6 million in the prior quarter.

—Expansion deals accounted for $2.3 billion and 260 deals, according to the MoneyTree survey. The average expansion stage deal was $9 million, down from $9.3 million in the previous quarter.

—Investments in later-stage venture deals amounted to $2.8 billion and 242 rounds. The average later-stage deal during the second quarter was $11.5 million, up from $10.8 million in the prior quarter.

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