Thursday 29th Apr 2010
Market News
Global Venture Capital Investment Shows Progress In Q1 Except For Lagging Europe
Total venture investment increased in Canada, China, India and Israel, according to new data from industry tracker VentureSource.
Those increases were part of an overall trend that also saw venture capital investing increase in the U.S. in the first quarter, to $4.71 billion on 597 deals from $4.24 billion on 522 deals in the first quarter of 2009.
Europe was not part of the global trend, however, logging 212 rounds in the first quarter of 2010 versus 227 a year ago. It was the lowest number of financings in any quarter since at least 2000. Capital invested also fell, but only slightly, to $1.12 billion from $1.20 billion.
Health care, which drew more money than IT in 2009, was by far the leading European sector in the first three months of 2010, drawing $436.8 million. That was a bit above the $427.5 million invested a year earlier. IT companies garnered $272.7 million in the first quarter, up from $237.1 million a year ago.
Those increases were countered by a decline in the European energy and utilities sector, which fell to $51.5 million from $189.8 million the year before.
Like Europe, Israel saw a deal drop, to 23 in the first quarter from 38 a year ago. The amount invested, however, rose to $212.2 million from $174.9 million in the first quarter of 2009. IT was the leading Israeli sector with $89 million invested, down from $108.5 million a year ago. Health care, which hit a low of $20.8 million in the first three months of 2009, rebounded to $55.6 million.
