Overall 2009 was a dismal year for venture capital investment, with a 31 percent drop, from $31 billion down to $21.4 billion, worth of deals completed. That’s according to reports that track venture capital funding from the MoneyTree Survey from the National Venture Capital Association and Pricewaterhouse Coopers.
However, the industry saw a bit of a blip in venture capital funding in the fourth quarter of the year, spurred on by investments in biotechnology and life sciences companies, reports the San Diego News.
What’s more, biotech edged out software as the single largest industry category for VC investment, the first time that’s happened since NVCA and PWC began tracking the industry in 1995 for their MoneyTree survey.
According to William Malloie, a partner with PricewaterhouseCoopers, the data shows that venture capitalists aren’t merely retrenching and focusing on the mature companies in their portfolio. Many are seeking out start-up companies in these hotter sectors.
On the other hand, investment in clean tech lags. Clean tech saw dollar investments drop by 52 percent and the number of deals fall by 31 percent in 2009. Advice to venture capital job hunters: focus on VC firms that specialize in biotech and life science.
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