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Report: VC Deal Activity on the Rise

Seed investments now constitute the largest percentage of all venture capital deals.

The third quarter was the most active quarter for venture capital deals since the dot-com boom, according to a new report released by venture capital research firm CB Insights.

The 835 venture capital investments made in the most recent quarter totaled $7.5 billion. While the quarterly deal count was at its highest level in years, total investment was down from the previous quarter ($8.1 billion) and the third quarter of 2011 ($7.9 billion).

Despite mention of the dot-com era, CB Insights refutes any indication of a "bubble," saying that unless funding for the fourth quarter hits $9.2 billion, 2012 will be a down year in terms of venture capital investment.

Seed investing constituted 31% of all venture capital deals for the quarter and continues to account for a greater share of all venture capital deals. Over the last four quarters, the percentage of venture capital deals that were seed investments has risen from 14% to 19% to 22% to 31%.

Investment in mobile technology hit five quarter highs for both number of deals and dollars invested, and 42% of all mobile deals were seed investments.

Deals and funding for the clean technology industry, meanwhile, hit five quarter lows.

Last updated: Oct 17, 2012


John McDermott is a business and culture reporter whose work has appeared in the Chicago Tribune and Playboy and on He recently moved from Chicago to Brooklyn, New York, to work for

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