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Q2 VC investment rebound as health overtakes IT

July 20, 2009

One sure place you’d expect to find green-shoots thinking would be in venture capital precincts. Figures released over the weekend show the industry staging a minor rebound during the second quarter, only not in the usual ways.

2009 Q2 VC investments

U.S. venture capital investments grew by nearly 32 percent during the second quarter to $5.27 billion, rebounding off the lowest quarterly levels in 11 years earlier this year, according to data from Dow Jones VentureSource.

IT VC investments

 

 

 

 

 

Investors have cut the amounts they invest in any particular deal, while diversifying out of biotech and software into area like medical devices and information services. It was the first time in memory that healthcare investments outpaced information technology in terms of the value of venture capital investments ($2.60 billion, or 184 deals in healthcare versus $1.88 billion or 248 deals.

Silicon Valley, which is synonymous with venture capital deal-making, saw investments sink 41 percent to $1.83 billion.

But the Valley still attracts three times more investments than the Boston/New England region which drew $640 million, a decline of 39 percent. Southern California was even harder hit as venture investments dropped 59 percent to $433 million and Texas fell 53 percent to $73 million.

Health v IT VC investments

(Images: Dow Jones VentureSource)

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