Venture Capitalism

Q1 Report: VCs Invested Nearly $7 Billion Across 841 Deals, the ‘Highest Level’ Since Dot Com Boom

Things are looking up!
(Photo via CBI Insights)

(Photo via CBI Insights)

CB Insights released a new report about venture capital financing for the first quarter of 2013, and after a bleak 2012, things are looking up for New York startups. The state beat out Massachusetts for the second time in the last two years on “overall number of deals and funding” (not exclusive to tech companies), placing just behind California.

The report notes that the number of Internet deals hit its highest spike since the first quarter of 2010, with 379 deals.  Social websites aren’t faring as well. The report mused that they’re “so 2007,” as they accounted for just four percent of deals. Nationally, VCs invested $6.9 billion across 841 deals, making deal activity the “highest level since dot com days.” Seed funding “still registered a strong quarter,” though it didn’t near its Q3 of 2012 highs.

Meanwhile, clean tech deals are plummeting, with less than $500 million being invested in the sector in the year’s first quarter. “In the past, a single Clean Tech deal might be greater than that,” the report notes.

In New York, funding increased to a five-quarter high of $715 million, with funding climbing a “gargantuan” 113 percent since the first quarter of 2011. It’s “no surprise,” writes the report, that Internet-related deals topped the number of deals made (71 percent) and money invested (74 percent share of investment dollars).

The report also ranked Warby Parker’s $41.5 million funding round as a “top” deal. Other deals of note include Aereo, SR Labs and AppNexus. Manhattan racked up 84 deals in the first quarter, totaling $642 million; Brooklyn had eight deals, totaling $13 million.

What bubble?

 

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