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The number of VC firms completing four or more deals per year has increased annually since 2009. There is a lot of chit-chat about capital crunch and how venture firms in particular are in the decline. However, this cannot be further from the truth. First, there is an increase in the number of VC firms. Second, these firms are investing at their highest since 2009.
As shown in the graph below, we’ve seen a steady increase in the number of active VC firms from 2009 to 2012, with 2012 registering more than 450 active firms. 2013 is trending well with nearly 500 VCs who have already done 2 deals this year.