Q3 2009 Venture Capital Stats Show that Purported Death of Early Stage Investing Greatly Exaggerated.
One of the most common refrains heard in the recent venture capital downturn has been that it would hurt early stage investment as venture capital funding would be siphoned away from early-stage deals in favor of investment to fortify existing portfolio companies, e.g., Series B, C, D, etc deals. While the level of early stage investment by venture capital firms might never approach the near limitless demand for such funds from aspiring entrepreneurs, the Q3 2009 data paints a clear picture – early stage investing is still happening and constitutes a significant number of the deals done in the top two sectors – healthcare and internet.
