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Looking Up: First Quarter Venture Capital Deals & Dollars Rise

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dominate as the overall No. 1 region for venture capital dollars, accounting for 52 percent of the $7.5 billion invested nationwide and 39 percent of the 738 deals.

Some other details from CB Insights’ data:

—Although California got most of the money and the biggest share of venture deals, CB Insights noted that venture capital funding continues to strengthen in the Boston-New York corridor. Massachusetts claimed 10 percent of the $7.5 billion invested during the quarter, and 12 percent of the deals. New York got 6 percent of the capital invested and 10 percent of the deals. Washington State remained flat, with 2 percent of the funding and 4 percent of the deals. (CB Insights breaks out its results for five states—California, New York, Massachusetts, Texas, and Washington—but not for regional or metropolitan areas.)

—New York has been claiming more tech dollars, and still ranks No. 2 (behind California, but ahead of Massachusetts) for technology investments. Counting all types of venture deals, New York claimed $447 million in 77 deals during the first quarter of 2011. That was a 40 percent increase in funding and a 31 percent gain in deals over the $319 million that went into 55 deals during the first quarter of 2010.

—First-quarter funding in Massachusetts amounted to $719 million in 85 deals. That was a 20 percent decline in venture funding from the same quarter last year, when venture investors put $898 million into 87 deals.

—The percentage of deals based on investment stage remained consistent with the previous quarter. About 10 percent of the total were seed-stage deals and 36 percent were counted as Series A deals. About 1 percent of the capital was invested in seed stage companies, with 17 percent going to Series A deals.

—Healthcare deals were down for the quarter as well as year-over-year. VCs put almost $1.6 billion into 150 healthcare deals nationwide. That was an 11 percent increase in funding and a 13 percent decline in deals compared to the same quarter of 2010, when investors put $1.4 billion into 173 companies nationwide.

—Among all deals and dollars invested, CB Insights found that the share of healthcare deals declined to 20 percent from 24 percent in the previous quarter (and from 24 percent in the first quarter of 2010). Healthcare also got a smaller slice of the venture dollars invested, declining to 21 percent from 24 percent in the previous quarter (and from 24 percent in the first quarter of 2010).

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  • Very interesting reading, thank you Bruce and Xconomy for this very comprehensive analysis.

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