Are Venture Capitalists Becoming More Adventurous?
VC funding seemingly stabilizes for most of the tech sector.
ByCarol Tice•
Opinions expressed by Entrepreneur contributors are their own.
The venture capital spigot continued to dribble rather than gush through the first half of 2009, according to data compiled by VentureDeal in Menlo Park, Calif. But there was good news along with the bad.
The bad: Total VC funding across all technology sectors was roughly 40 percent less than it was at the end of June '08, with about $4 billion in funding received in the second quarter of 2009 versus $7 billion in Q2 2008. The good: Comparing Q2 2009 with the previous quarter shows VC tech funding has hit bottom and is on the way back up. Three of the four tech sectors VentureDeal tracks--alternative energy, biotech and Internet--rebounded from Q1 '09, with energy seeing the biggest gain, up 20 percent. Only telecom remained moribund, with just $204 billion in funding in Q2 '09, less than half what it was in the first quarter and just one-third the dollars committed in 2008's second quarter.
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