Venture Capital and Angel Funding News

Venture Capital and Angel Funding from the Startup Garage
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At The Startup Garage, we’ve been spending a lot of time paying attention to the economy as it relates to startups, especially in relation to funding. In the past few days, a variety of reports have been released regarding the state of venture capitalism over the past quarter. Based on what we have seen, VCs and Angels are handing startups less money as of late. Here are a couple of reports that show this in more detail.

Money Trees Quarterly Venture Capital Report

Every quarter Price Waterhouse Coopers comes out with a quarterly report about the state of venture capitalism in America, and this quarter was no exception. According to the report, the total amount VCs invested dropped by 31% from the previous quarter and the number of deals that were made also fell by about 19%. Thats a decrease of $2.1 billion and 182 deals. Software, Biotechnology, Clean Technology, and Internet Specific companies rounded out the top 4 industries that received money this past quarter, but all saw a significant decrease in funding. The one bright spot of the PWC report is that the large portion of the deals, 35%, occurred in the Early stage.

Super Angels Not So Super?

According to blogger Gregory T. Haung and a report coming from the Center for Venture Research at The University of New Hampshire, angel investments for the first half of 2010 totaled $8.5 billion which is a 6.5% decrease compared to 2009. Angels did increase the total number of deals that they made by 3%, up to 25,200. However, the statistic that troubles us the most is that only 26% of all the deals that were made were classified as seed or startup stage.

So what do these reports mean for the average entrepreneur? Basically, that VC and angel funding is decreasing. There are several factors that contribute to this decline. Over the past few months Internet companies have been able to lower their startup costs, which could explain some of the decrease in funding. Also, as has been the trend over the past couple of years, the unfavorable economic climate is making investors pickier about where they put their dollars. Even though this is a negative trend for entrepreneurs, keep in mind that there are still plenty of sources of funding out there.

Whether you have a question about Venture Capital and Angel Funding or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

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About Tyler Jensen

I work with entrepreneurs who are looking to attract investment and get out of the "Garage". I am passionate about helping entrepreneurs start companies that matter. I helped launch over 100 Companies, Non-Profits and Social Enterprises. I consider myself a serial entrepreneur, startup coach & trusted advisor. * Launching New Companies (For Profit, Non-Profit and Social Enterprise) * Expert Business Plan Writer * Extensive Network of Business Relationships focused on Launch & Rapid Growth of New Companies * Startup, Growth, Marketing, Technology, Web, Business Systems * Trusted Advisor to CEO’s & Entrepreneurs * Capital Raising Strategy Development * Startup Team Development The first company I started and sold is VAVi Sport & Social Club which grew to over 25,000 members in six years, was recognized as San Diego’s 30th fastest growing private company in 2006 by the San Diego Business Journal and 32nd fastest in 2007, and sold for over 25X the capital investment.