2011 Venture Capital Report – A Record Year with $30.6 Billion Invested in 3051 Deals
9 Comments to Read
Venture capitalists weren’t bashful in Q4 2011 showering 755 companies with $7.6 billion in venture funding. Q4’s performance brought 2011’s total to $30.6B invested in 3051 deals which marked a 10-year high for the VC asset class on both deals and dollars.
Let the talk of a bubble begin in 3, 2, 1…
Here are some of 2011′s highlights.
The Fat Venture Capital Funnel
With 2011’s results, the bubble talk will shift into overdrive. The reality is that VC funding is a funnel. More companies get Series A than B than C – etc, etc. Within tech, our data shows the VC funnel has gotten fat at the top (a lot of Series A and Seed deals). And VC Darwinism means that not all of these companies can or should receive Series B, C, etc. While some would rightfully say this is the way markets work, for a company raising money, this dynamic will represent a “chokepoint”. Some will receive funding, some will die quickly, some will get acq-hired or be asset sales get dressed up as acquisitions, some will be orphaned and figure out a way to make money and become steady real businesses and some will die a slower, more tortured death.
New York – Back to Reality or a Speed Bump?
One quarter does not a trend make. So after taking the #2 spot for aggregate VC deals and dollars in Q3’11, NY slipped back to #3 behind Massachusetts. The state retains its hold on #2 for tech deals and dollars and showed some life in the healthcare realm as well. We’ll see if NY can fight back like it’s resilient football Giants or whether the state will just talk incessantly and not perform like the Jets in future quarters.
Healthcare VC – Rumors of Death Greatly Exaggerated
Healthcare hit a five quarter high on funding and showed solid deal activity. Sector reverses downward trend and shows pulse to close out 2011.
Massachusetts’ Balanced Attack Brings It Back to #2
Massachusetts took back its #2 spot for both deals and dollars with deals across multiple sectors. Healthcare was particularly strong. Internet investment in the state was the one weak spot in an otherwise strong showing.
Internet Takes 1/3 of VC Dollars in 2011
Cali and NY account for 59% of internet VC deals and 66% of funding. Internet investments took over 1/3 of venture dollars in 2011. Massachusetts fell to a five quarter low on internet deal share. Mega-deals in the data storage (Dropbox and Box.net) buoy funding.
California Venture Capital Steady as Ever.
Cali still the top spot for VC deals and dollars. ‘Nuff said.
Washington Stalls. Again.
We’ll bring back our “Sleeping in Seattle” metaphor as Washington continued its multi-quarter dealflow slide and also came down on funding.
Venture Capital Report – Q4 2011 –
-
Cloud investments zoom, account for 1/4 of web deals — Cloud Computing News said,
[...] The CB Insights 2011 Venture Capital Report, released Thursday, showed that Internet or web companies took in a healthy $10.5 billion in 1185 deals total last year, although the number of deals tailed off in the fourth quarter (see chart.) [...]
-
Venture-Backed Biotech's 2011 M&A Exits Outpaced Both Investments and Fundraising - Forbes said,
[...] would imply $17B in realizations. The early data on 2011′s total venture financings (from CBInsight) has the aggregate funding at $30B. The data might not be perfect, but it does suggest a large [...]
-
Venture-Backed Biotech’s 2011 M&A Exits Outpaced Both Investments and Fundraising said,
[...] would imply $17B in realizations. The early data on 2011′s total venture financings (from CBInsight) has the aggregate funding at $30B. The data might not be perfect, but it does suggest a large [...]
-
A VC grows in Brooklyn. Charlie O’Donnell launches Brooklyn Bridge Ventures | VentureBeat said,
[...] CB insight noted earlier this month, Brooklyn had just five venture deals in 2011, compared to 61 in New York. But a lot of [...]
-
Dow Jones VentureSource Data - It's Not That Good said,
[...] our quarterly venture capital report for Q4 2011 having just come out, we inevitably will get questions when the Dow Jones VentureSource [...]
-
Essentials of the Week : January 9 – 20 | Science & Innovation Insiders said,
[...] of the Week : 2011 Venture Capital Report – A Record Year with $30.6 Billion Invested in 3051 Deals - CB [...]
-
» Venture investment in Midwest healthcare startups rose 10% last year said,
[...] and posted a five-quarter high in funding and recorded solid deal activity, according to the latest quarterly report from venture capital database CB [...]
-
NY's Venture Capital Lead in Tech Over Boston Accelerates said,
[...] last 9 quarters, NY has shown growth. And this occurred against a backdrop of a record year for venture capital investing in 2011 suggesting that a rising tide in this case did not lift all ships. Of course, it is important to [...]
-
VC Investing: Stepping Away from the Crowd said,
[...] set the scene, take a look at the numbers from last year here. As you would imagine, California leads the charge with the Massachusetts and New York coming in [...]
Add A Comment