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Venture Capital Activity Is Picking up

Published: 12/9/2009 8:51:11 AM

After a few quarters of a significant reduction in venture capital funding activity and fund closings, it looks like activity is beginning to pick up again.

During Q2 and Q3, there were an average of 5-7 daily funding announcements.  During Q4, the average has bumped up to 8-10.  Even after allowing for seasonal variations, the increase in activity is unmistakable.

We are also seeing more venture capital firms actually get their fund-raising closed so that they can begin to make investments in new companies.  For the previous few quarters, there were a number of VCs that had received commitments of approximately half of their target, but had not closed.  Now we are seeing more venture capital firms close those funds.

Lastly, M&A activity is picking up as well, with some of the large acquirers such as Google and Cisco stepping up their acquisition deal volume.  Deal quality still remains spotty, with a number of asset purchases interspersed with operating company acquisitions, but the trend is definitely improving.

Cheers,

Don Jones

VentureDeal

 

Don Jones
CEO, VentureDeal

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