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Venture Capital Today: Key Numbers to Remember : Technology :: American Express OPEN Forum

Tom — Wed, 25 Nov 2009 14:34:39 +0000

Venture Capital Today: Key Numbers to Remember

Nov 24, 2009 –

If you’re an entrepreneur who is looking to bring your business to the next level, venture capital is often a smart and logical choice. However, securing investment is no easy task. That’s why it’s important to research venture capital firms, refine your pitch, and finally, understand where venture capital money is flowing and where it is drying up.

Luckily, most of that information is readily available. Every quarter, PricewaterhouseCoopers provides a thorough MoneyTree report on the state of the venture capital industry, utilizing data from Thompson Reuters. The result is very detailed information that helps us understand trends in venture capital.

Here are what I believe are the key numbers and trends to discern from the Q3 report. Hopefully this data will help you figure out which industries are hot, who to approach, and what to expect from venture capitalists as we approach 2010:

1.     $4.8 billion in venture capital was invested in total in Q3 2009. This is up from a low point of $3.32 billion in Q1 2009, but well below the $7.16 billion invested in Q3 2008.

2.     There were 637 investments in Q3 2009. This is down from the 994 investments of Q3 2008 and, in fact, amounts to a 3% drop in investments from the second quarter of 2009.

3.     The average deal in the third quarter of 2009 was worth $7.54 million.

4.     Biotechnology led venture capital investments in Q3 2009 with $905 million. Not far behind was Industrial/Energy, Software, and Medical Devices. Biotechnology saw 104 deals.

5.     Internet-specific companies received $843 million through 148 deals in Q3 2009. Financial investment increased by 42% from Q2 2009, indicating that the Web is recovering from the recession as well.

6.     Seed funding is growing. $1.6 billion of venture capital in Q3 2009 came from seed and early-stage funding, which represents an 11% growth from last quarter. While most people think of seed funding as small investments that can start as low as a couple hundred thousand dollars, the truth is that the average seed investment is around $5.9 million today, which is actually down from the $9.6 million average of Q2 2009.

7.     First-time deals are getting smaller. In Q3 2008, the average first-round deal was $5.1 million. In Q3 2009, it’s $4.1 million, nearly a 20% decrease.

8.     Silicon Valley is recovering. In Q3 2009, Silicon Valley saw a 63% increase in investments from Q2 2009, amounting to $2.2 billion being invested in the technology capital of the world.

9.     Around half of the most active venture capital firms are in Silicon Valley. According to the PriceWaterhouseCoopers/MoneyTree report, around 29 of the 59 firms with five or more deals in Q3 2009 were from Silicon Valley. However, with 20 deals, New Enterprise Associates in Baltimore, MD led the list.

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Great summary as we approach 2010

Posted via web from Tom’s posterous

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Twitter raises new funds: still no business model announced.

TomM — Sun, 25 Jan 2009 21:46:10 +0000

TechCrunch is reporting that Twitter has raised more funds, this time with a $250 million valuation. Last fall, Facebook was said to have made an offer to buy Twitter worth as much as $500 million.

That certainly would be a boon for Twitter, which until now has not shown signs of a viable business model to the world. However, it seems the valuation is certainly based on future potential for monetization of its users and that Twitter has managed to show investors enough of a structure of a business model to loosen up the money.

Robert Scoble put the announcement in perspective “That means that if you are one of the six million people on Twitter that you’re worth $42.” (Jeremiah Owyang was quick to point out “Assuming all six million are active – the valuation is more like $73). Kind of rich for an open source platform – unlike Linkedin which sells out premium services that allows users greater access to data/users – Twitter has an API and a whole lot of spin off applications (sponsorships, advertising, friend harvesting have all been mentioned as possible revenue streams).

Congrats to the Twitter team - If you’d like to follow me at Twitter - www.twitter.com/tmaduri

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The necessity of early stage valuations A friend/contrarian Tweeted the following that I though was...

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Chrome out of BETA

Tom — Mon, 15 Dec 2008 17:00:53 +0000

Within 100 days of launching Chrome – Google has lifted the BETA tag from the product.

On the Google Blog, Chrome is listed to have reached more than 10 million active users around the world (on all seven continents, no less) and released 14 updates to the product. We’re excited to announce that with today’s fifteenth release we are taking off the “beta” label!

Tags: Chrome, Google, BETA, web 2.0

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Google Turns 10…and a Chrome follow up.

Tom — Sat, 06 Sep 2008 19:49:52 +0000

Here is a quick summary of Google’s progression over the last 10 years presented by Fortune on Cnnmoney.com. Its hard to believe 10 years has past since Larry and Sergey started out of a garage in Menlo Park. Congrats to Google for their success and many years of success to come.

I just want to review the past week for Google – Chrome launched after a premature start out of the gate. Following the launch, there was an immediate positive response in fact, that according to some statistics gatherers it is already beating Opera in terms of numbers, taking in a little over 2.6% market share.

Immediately I noticed some great browsing speed and a lack of crashing on my ol’Windows-driven PC — even when I started to browse some pretty rich internet content sites. However , until Chrome supports plug-in’s and Apple Leopard, I will not even consider making Chrome my primary browser.

In closing, if you thought the premature release of the comic book was misstep, looks like copy-paste got the best of someone at Google. The original EULA that everybody did not read before accepting the download gave Google ownership over all user generated content posted to the internet through their browser. Pretty Evil stuff for a company that strives not to be evil

Tags: googlechrome, rich internet applications, immersive internet,

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Browser War — Google Chrome into the mix now

Tom Maduri — Tue, 02 Sep 2008 13:14:34 +0000

Google Chrome, rumored since 2004, was formally announced on the Google blog over the Labour day weekend. The oddly timed announcement was forced after Google prematurely sent out a comic book drawn up to herald the new browser’s arrival to some media outlets

Many are considering this a direct shot at Microsoft, which dominates the browser market, in response to IE8’s launch last week. Microsoft’s unveiling of a test version of its latest browser update, with tweaks that include more tools for Web surfers to cloak their on-line preferences, creating a shield that could make it more difficult for marketing networks to figure out which ads are most likely to appeal to which individuals.

Prior to Chrome, Google has been a strong supporter of Firefox, a Web browser developed by the open-source Mozilla Foundation, through an advertising partnership (recently extended until 2011). Firefox ranks as the second most popular browser, with a market share of more than 10 percent.

This announcement should not come as a surprise given the browser is the most significant piece of software related to the Internet. In a blog post Monday, Google touted Chrome as a more sophisticated Web browser better suited for displaying the dynamic and interactive content blossoming on the Web as people migrate from television, radio and newspapers.

Tags: googlechrome, microsoft IE 8, Mozilla, internet browsers, rich content, interactive content, security, internet preferences, internet marketing, search engine

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Innovate like Google….

Tom Maduri — Mon, 18 Aug 2008 15:05:08 +0000

An interview with Tom Davenport, Professor of Information Technology & Management, Babson College. While some elements of Google’s success as innovator would be very hard to emulate, others can be profitably adopted by almost any business.

Tags: business, davenport, google, harvard, innovate

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Cuil

Bentley — Mon, 11 Aug 2008 15:59:49 +0000

Just in case you’ve been under a rock of late — visit http://www.cuil.com/info/

Started by some ex-googlers, they are already marketing themselves as the largest search engine in the world (given its claim of indexing 120 billion Web pages).

On launch day , I tried to search for the Canadian Prime Minister – Stephen Harper – with no success. Some of our company sites were showing unrelated images with the search results.

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Social Networking – passe?

koshy — Thu, 31 Jan 2008 20:04:46 +0000

It really seems that social networking in the US has started to slow.

Ante’s perspective on Comscore data

A refreshing view on the Social Networking space written by Chris Williams of The Register

I know that the long tail applies to content. Given the shear amount of pitches I see on a weekly basis for start up social networks… you would be surprised how many people think friends can be “long-tailed”.

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