Venture Capital Investing Holds Up Better In US Than Abroad
Venture capital flowed more freely in the United States than abroad during the second quarter, suggesting that the entrepreneurial motor of the U.S. economy remains somewhat more intact.
In the U.S., venture capitalists invested $5.27 billion in startups during the three-month period, 37 percent less than a year earlier, according to Dow Jones VentureSource. VCs in Europe, China, Israel, Canada and India watched as their investments plummeted 63 percent to $1.46 billion.
The total overseas was even less than in the troubled first quarter, when a financial meltdown froze business around the world.
Europe held up better than other international regions, but investments in information technology and clean-tech suffered (as they did in the U.S.).
In China, VCs funded only 33 deals and spent $282 million, an 80 percent drop from the second quarter of 2008. Healthcare investing proved a relative bright spot in the country (as it also did in the U.S.).
Israeli startups received 67 percent less than a year ago and Indian companies took in only 66 percent of what they did last year.
“Investors are finding it more challenging to maintain their stakes in current investments,” says Jessica Canning, director of global research at VentureSource.
They also aren’t eager to pour money into new companies. With the industry retrenching globally, now may actually be a good time to offer cash to seedling companies. Oh, and advantage U.S.
Venture capital flowed more freely in the United States than abroad during the second quarter, suggesting that the entrepreneurial motor of the U.S. economy remains somewhat more intact.
In the U.S., venture capitalists invested $5.27 billion in startups during the three-month period, 37 percent less than a year earlier, according to Dow Jones VentureSource. VCs in Europe, China, Israel, Canada and India watched as their investments plummeted 63 percent to $1.46 billion.
The total overseas was even less than in the troubled first quarter, when a financial meltdown froze business around the world.
Europe held up better than other international regions, but investments in information technology and clean-tech suffered (as they did in the U.S.).
In China, VCs funded only 33 deals and spent $282 million, an 80 percent drop from the second quarter of 2008. Healthcare investing proved a relative bright spot in the country (as it also did in the U.S.).
Israeli startups received 67 percent less than a year ago and Indian companies took in only 66 percent of what they did last year.
“Investors are finding it more challenging to maintain their stakes in current investments,” says Jessica Canning, director of global research at VentureSource.
They also aren’t eager to pour money into new companies. With the industry retrenching globally, now may actually be a good time to offer cash to seedling companies. Oh, and advantage U.S.
posted by Mark Boslet at 11:46 AM
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