New data suggests that venture funding may not what we think it is. What will it take to get trustworthy numbers?
Venture capital cash flow to start-ups plummets to $3.7 billion in the second quarter, compared with $7.5 billion a year ago.
Boost is largely driven by investments in clean technology and Internet-related companies, according to report out Friday.
But will financial market woes clog up the spigot? For the moment, at least, the software and clean-tech sectors have done all right for themselves.
The latest venture capital numbers show a pullback from green tech, reflecting the challenging funding environment for green-tech start-ups.
The $17.7 billion invested by venture capitalists in 2009 marked the lowest point since 1997, though the fourth quarter showed some positive signs.
Green-tech sectors--solar, alternative fuels, auto, and wind--are expected to get more money from venture capitalists in the coming year, with hopes of healthy IPOs in 2010.
After tailing off earlier this year, venture investors are showing far more confidence in green technology in the third quarter, buoyed by government policies and a successful IPO.
PricewaterhouseCoopers report touts positive signals for venture-backed clean tech. But even with strong fundamentals, problems in the industry are clear.