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Report: VC Deal Activity on the Rise
 

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

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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 AOL.com. He recently moved from Chicago to Brooklyn, New York, to work for Inc.com.
@J_M_McDermott




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