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PwC: Annual venture investment dollars decline for first time

By Rob Starr, Content Manager,

According to the MoneyTree Report by PricewaterhouseCoopers LLP, Venture capitalists invested $26.5 billion in 3,698 deals in 2012, a decrease of 10 percent in dollars and a 6 percent decline in deals over the prior year.

The Software industry maintained its status as the single largest investment sector for the year, with dollars rising 10 percent over 2011 to $8.3 billion, which was invested into 1,266 deals, an 8 percent rise in volume over the prior year.  This represented the highest level of investment in the Software sector since 2001.

Biotechnology investment dollars declined 15 percent with volume flat in 2012 to $4.1 billion going into 466 deals, placing it as the second largest investment sector for the year in terms of dollars and deals. For the fourth quarter of 2012, $1.3 billion went into 135 Biotechnology companies, an increase of 3 percent in dollars and 13 percent in the number of deals from the third quarter when $1.2 billion went into 119 rounds.

The Clean Technology sector experienced a 28 percent decrease in dollars and a 23 percent decline in deal volume in 2012, bringing the year’s total to $3.3 billion going into 267 deals, compared to $4.6 billion going into 348 deals in 2011.

Early Stage investments experienced an 11 percent decline in dollars but a 5 percent increase in deal volume in 2012 with $7.8 billion going into 1,638 deals.  For the fourth quarter, Early Stage investments increased 5 percent in dollars and 9 percent in deals over Q3 2012 with $1.9 billion going into 448 companies.



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