Coming as no surprise the venture capital (VC) spending in the first quarter of 2008 is down 8.5% to $7.1 billion, compared to the same period in 2007 according to the latest figures from MoneyTree™ Report from PricewaterhouseCoopers (PwC) and the National Venture Capital Association (NVCA). Despite the overall drop – several sectors managed to increase both deal flow and overall investment dollars.
According to the press release from PwC and NVCA:
Companies in Software, Medical Devices, Biotechnology, and Media/Entertainment received the highest level of first-time dollars. While Financial Services, Computers & Peripherals, and IT Services also saw more dollars invested into their industries for the first-time this quarter as compared to last. Only the Media/Entertainment industry experienced an increase in both dollars and deals with 45 companies receiving $210 million in funding.
With the evolution in communications it comes as no surprise that the venture capital investment in new media companies would continue to show significant early stage growth in both number of deals and funding.