Q1 Venture Capital Spending And Number Of Deals Down, M&A Activity Drops 44 Percent And Pre-Money Valuations Plummet

Dow Jones Venture Source released its quarterly report on the state of venture capital, including data on number of VC deals, funds raised, M&As and IPOs in the technology sector. According to the report, U.S.-based companies raised $6 billion from 752 venture capital deals in Q1 2013, an 11% decrease in capital and a 6% decrease in number of deals from the previous quarter. Compared to the same period in 2012, there was an 11% decrease in deals and a 12% decrease in amount invested. Additionally, median pre-money valuation dropped 79% from 4Q 2012.

Deals in Information Technology (IT), Healthcare, Energy and Utilities, and Industrial Goods all declined, and deals in Business and Financial Services, Consumer Goods, and Consumer Services investment increased from the previous quarter.

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