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Venture Capital Survey of the Silicon Valley in 2009 Third Quarter

Insight Michael Moradzadeh Michael Moradzadeh · November 16, 2009

Dow Jones VentureSource is one of the most popular nationwide venture capital date reports in the United States. VentureSources published its latest data on the development of venture capital investments in the third quarter of 2009. Below are some overviews observed by VentureSource.

  • With 616 venture deals and $5.1 billion invested, Q3 is a 6% drop over Q2;
  • IT investment barely outpaces health care;
  • Web2.0 investments surpassed the software sector for first time on record;
  • Medical device investments nearly match biopharmaceuticals;
  • Corporations investing instead of acquiring, commitments to VC-backed firms surpasses 2008 total;
  • $5 million median deal size on par with Q1&Q2, but still lowest since 1999.

It is undeniable that the investments and fundraising by venture capitalists remained at low levels in 3Q’2009, but there is room for optimism as the economy is picking up slowly and Nasdaq continued to improve. In addition, with regard to the largest U.S. deals overall in 3Q’2009, eight deals are conducted in California, such as Facebook, Tesla Motors, and Pacific Biosciences of California, etc.