San Diego’s Q1 Venture Activity Surges on One Mega Deal

4/20/12Follow @bvbigelow

Boosted by a $144-million “mega deal” that Sappire Energy disclosed a few weeks ago, VC investments in San Diego climbed to a four-year high during the first quarter of 2012, according to a pair of VC surveys being released today.

San Diego’s bouyant trend, however, ran counter to a significant downward trend in overall VC funding throughout the United States, according to the surveys. We saw a similar nationwide decline in dollars invested during the first quarter in the venture capital activity report released earlier this week by CB Insights, the New York financial data services firm. (CB Insights does not break out its data by region, however.)

In the MoneyTree Report, VC investors provided almost $357.1 million in 22 deals throughout San Diego County. Almost half of the capital—$175 million—went into 12 life sciences deals here. Total funding amounted to the biggest slug of venture dollars for San Diego companies since the second quarter of 2008, when VCs invested $362.1 million in 39 deals, according to the MoneyTree survey, which is prepared by PricewaterhouseCoopers (PwC) and the National Venture Capital Association (NVCA), based on data from Thomson Reuters.

The numbers vary in the first-quarter data from Dow Jones VentureSource, but a similar surge of venture financing is apparent in the first-quarter data for San Diego. The financial services arm says VCs invested $467.25 million in 21 deals throughout San Diego County. It’s the most capital invested in this area that Dow Jones has counted in more than four years.

The national trend is a different story, however.

The MoneyTree Report found that VCs invested $5.8 billion in 758 deals in the first quarter, which represented a … Next Page »

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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