Published by: VentureDeal

Summary

During the second quarter, there were 419 companies that received $2.93 billion in venture capital funding in the aggregate. Unlike the first quarter of the year, the Software sector exceeded the Internet sector in fundings, with 28 additional companies funded.

Digital Media activity continued to decline, down 10% in total amount funded. However, 10% more companies received funding than the previous quarter.

eCommerce funding was up sharply, more than quintupling to $93 million among 14 companies. The funding environment appears healthy, with a wide distribution of funding amounts among early, expansion and late stage companies.

Funding Activity

Internet

Internet sector companies received $1.24 billion in venture capital funding during the quarter, which represented a 16% decrease in funding allocated among 172 companies, a reduction of 8% in the number of companies funded.

Notable transactions during the quarter were social networking company Facebook receiving $100 million in debt financing, and LinkedIn, also a social networking website, receiving $53 million in its series D funding round.

Coremetrics received $60 million in its series E funding round. The company provides on-demand Web analytics and marketing solutions that helps websites track visitor clickstream activity to improve their site performance.