VC Spending Plummets But Software Still Tops

Venture capital spending in the third quarter went into a nosedive as large funds simply invested fewer dollars in more companies and some sectors, particularly clean technology, just fell off the cliff.

As Datamation reports, software companies managed to hold the top spot among all industries with more than $1 billion in investments.

Security apps and anything related to mobile and social media were especially appealing to VCs looking for the next generation of companies to light up the stock market and their own portfolios.

“Despite investment declines, there are reassuring signs of stability in the third quarter
Numbers,” NVCA President Mark Heesen, said in the report. “Cloud computing, social media and security continue to show tremendous promise on the IT side while medical advances abound in biotechnology and medical device fields.”

Venture capital spending took a precipitous dip in the third quarter but software startups focused on cloud computing, social media and wireless apps received the most funding of any industry sector, according to the MoneyTree Report from PriceWaterhouseCoopers and the National Venture Capital Association (NVCA).

Total venture capital investments tumbled to $4.8 billion in the third quarter, down a staggering 31 percent from the second quarter when firms pumped $6.9 billion in seed money into a total of 692 deals.

Read the full story at Datamation:

VC Spending Slumps in 3Q But Software Still On Top

News Around the Web