As our Q3 2010 Venture Capital Activity Report detailed, the quarter saw $5.4 billion invested across 715 deals. The dichotomy in the quarter was stark as venture funding was down at a five quarter low while deal activity was at its 2nd highest level in eight quarters.
The trend over the last eight quarters can be seen below.
The funding decline resulted from a significant decline in VC mega-deals, i.e., those over $100 million while deal strength came on the back of healthy early-stage deal activity.