VentureSource Q1 Numbers Not Very Pretty

Dow Jones VentureSource just released Q1 results for VC activity in the US. Not surprisingly, the numbers weren’t very pretty. Total dollars invested decreased by 50% from the same quarter last year. The one bright spot – if you can really call it that – was health care, which only declined 34%. M&A activity in health care has kept VCs interested in the space. VC investments in all the other sectors declined 50% or more. So have we hit the bottom? Are VCs going to jump back in and start deploying cash? Will companies finally be able to raise capital? Unfortunately, I think it’s too early to tell. Even if we have bottomed out, I don’t expect too many VCs will rush back in right away. It’s probably going to be a drawn out process as investors slowly test the waters.

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