Venture capitalists greeted the new year with fewer overall deals and dollars invested during the first quarter, but in the rapid-fire world of investing in web startups this data is about as relevant as a day-old newspaper. In a post-Instagram world the tides have changed.
It may not be Silicon Valley but the Boston-Cambridge metro area has a lot going for it — infrastructure expertise, a deep talent pool, and VC funding. Facebook famously went elsewhere, but here’s why other local companies started here (and will stay put.)
If you thought 2011 seemed like a big year for web startup funding, you were absolutely right. According to the latest MoneyTree report from PricewaterhouseCoopers and the National Venture Capital Association, 2011 saw the highest level of VC investment in Internet companies over the past decade.
There’s been a lot of media buzz in recent months about the lack of racial and gender diversity in the tech startup landscape. Now new data from the National Venture Capital Association indicates that the VC field is similarly homogenous: It’s very white and mostly male.
The window of opportunity for Initial Public Offerings (IPOs) is almost closed according to a report released by the National Venture Capital Association (NVCA) in conjunction with Thomson Reuters. The report points out that the Q3 2011 was the weakest since the end of 2009.
Venture capital investments continued to grow at a rapid clip during Q2 2011, with investments in Internet-specific companies rising to the highest quarterly level since 2001. But some industry experts are saying that the current level of VC activity may be unsustainable.
Venture funds raised a mere $2.7 billion during the second quarter this year, and the industry trade association is sounding the alarm about a shrinking number of funds. What does it mean for the industry when the diversity of funds decrease?
Big money deals are back in style. Venture firms dropped nearly $5.9 billion on 736 deals during the first quarter of 2011. Fourteen companies got at least $50 million, while four drew more than $100 million – numbers not seen since the third quarter of 2001.
Fourteen venture-backed companies went public in the first quarter of 2011 raising 1.4 billion, the highest number to go public since 2007, according to the NVCA. And many companies that did make it to the public markets are trading at or above their original offering prices.
Venture capital investing rebounded in 2010 after a grim 2009, but the big story arising from the latest MoneyTree results was that the superstars in the startup world appear to be reaping the rewards of big valuations while the others are pretty much left to malinger.