Every quarter, the San Jose Mercury News publishes the results of and commentary on a venture capital (VC) survey. The lead article in this quarter’s survey, Steep Plunge, provides some indication as to how things went.
Highlights from the VC survey:
- $3B in VC invested in 1Q09 nationally, down 61% from 1Q08
- $1.2B invested in the San Francisco Bay Area, down 43% from 4Q08 and down 61% from 1Q08
- 173 Bay Area deals done in 1Q09, down 26% from 4Q08 (suggesting deal flow got hit less hard than deal volume)
- Clean technology investments off 84% from 4Q08
The last line of the story says it all:
But with venture industry undergoing its own shakeout, VCs are under greater pressure to target the best opportunities for scarcer dollars, rather than place more bets in expectation that at least one will pay off big.
Other related coverage in the section:
- Silicon Valley Startups Slash Costs to Survive Downturn, an article about how companies are weathering the storm.
- An op-ed piece, Time To Stop Blaming Sarbanes-Oxley for IPO Troubles, by columnist Chris O’Brien with which I don’t particularly agree, but from which I nevertheless learned some interesting facts.