Startup Investments Rise in Second Quarter

While venture capitalist investments are down compared to recent years, there was good news in the second quarter. According to a report from the National Venture Capital Association and PricewaterhouseCoopers, there was a 15% increase in the amount of money invested by venture capitalists.

Mark Heesen, the president of the National Venture Capital Association, pointed out the good and the bad.

Said Heesen: “Halfway through 2009 we are seeing more positive signs than at the beginning of the year, including an overall increase in investment levels and an ongoing interest in seed and early stage funding. However, until we see notable upticks in venture fundraising and exit activity – which drive investment levels – we won’t expect considerable increases in the number of deals completed each quarter.”

Heesen also said that Life Sciences companies were having the best luck in terms of raising venture capital. The clean technology industry also saw a healthy growth in funding.

To find a place in time that saw this amount of venture capital investments, you’d have to go back about a dozen years.

“Based upon the current pace of investing during the first two quarters,” said Heesen, “it’s likely we’ll exceed $15 billion in investments for the full year, a total close to what we saw in 1997 before the Internet bubble.”

Grabbing Venture Capital can be Difficult (Image: Flickr)