In the first quarter of 2010, venture capitalists from around the world invested $7 billion in 919 deals for companies based in the U.S., Europe, Canada, Israel, Mainland China and India, according to a report from Dow Jones VentureSource, reported by Business Journal.
That represents a 13 percent increase over the $6.2 billion invested in 860 deals during same period last year 2009.
Companies based in the U.S. accounted for the majority of deals (65 percent) and dollars invested (67 percent) worldwide. During the first quarter of 2010, venture investors put $4.7 billion to work in 597 deals, up 12 percent from the same period in 2009.
Europe saw 212 deals garner $1.1 billion, down 7 percent from the same period in 2009. This marked the lowest deal count and the second lowest quarterly investment total for Europe since Dow Jones VentureSource began reporting on the region in 2000.
In Europe, the IT industry attracted $273 million, up 15 percent from the first quarter of 2009. The increase was thanks to the Semiconductors segment, which saw an 81 percent increase in investment. Software remained the largest IT segment as it raised $113 million in 28 deals.
Investments in Mainland China rose 35 percent over the same period last year as $579 million went into 45 venture deals during the most recent quarter. The Customer Services industry claimed the largest proportion of capital as $191 million was put to work, more than double the capital invested during the same period last year. IT was the second largest industry in China, garnering $144 million in venture investment.
In India, venture capitalists invested $259 million in 21 deals during the most recent quarter, more than double the $113 million put into 13 deals during the same period last year. The Services industries garnered the most capital as $108 million was put into Business and Financial Services companies and $102 million was invested in Consumer Services companies.
Despite a drop in deal activity from 38 deals completed in the first quarter of 2009 to 23 deals completed in the most recent quarter, Israel experienced a 21 percent increase in capital invested. In the first quarter of 2010, investors put $212 million to work in Israel-based companies.
Cecilia Helland