Subscribe to Entrepreneur for $5
Subscribe

Are Venture Capitalists Becoming More Adventurous?

VC funding seemingly stabilizes for most of the tech sector.

By
This story appears in the January 2010 issue of Entrepreneur. Subscribe »

The spigot continued to dribble rather than gush through the first half of 2009, according to data compiled by VentureDeal in Menlo Park, Calif. But there was good along with the bad.

The bad: Total across all sectors was roughly 40 percent less than it was at the end of June '08, with about $4 billion in funding received in the second quarter of 2009 versus $7 billion in Q2 2008. The good: Comparing Q2 2009 with the previous quarter shows VC tech funding has hit bottom and is on the way back up. Three of the four tech sectors VentureDeal tracks--alternative , biotech and --rebounded from Q1 '09, with energy seeing the biggest gain, up 20 percent. Only telecom remained moribund, with just $204 billion in funding in Q2 '09, less than half what it was in the first quarter and just one-third the dollars committed in 2008's second quarter.

Continue reading this article - and everything on Entrepreneur!

Become a member to get unlimited access and support the voices you want to hear more from. Get full access to Entrepreneur for just $5.

Entrepreneur Editors' Picks