Access to startup funding got tighter south of the border during the third quarter of this year.
According to figures reported by the Washington Post in our sourcearticle, startup funding in the U.S. fell to a total of $6.49 billionbetween July and September, a 12 per cent drop from the $7.34 billionraised during the same three-month period in 2011.
The volume of deals during Q3 also contracted to 890, down from 992 inthe year-ago period. So far this year, the total amount of VC fundingraised during the first nine months is also weaker at $20 billion,lower than the $22.2 billion raised from January to September of 2011.
Based on these figures, experts expect less VC to be raised for all of2012 compared with 2011, according to the story. The report is based onfigures from PricewaterhouseCoopers and the National Venture CapitalAssociation.
The well for startup funding inthe U.S. is drier so far in 2012 compared with last year. (Photo: Shutterstock)
Sectors that have attracted the strongest VC activity this year aresoftware, biotech and IT. The weakest VC niche in 2012 has been lifesciences due to concerns about regulatory changes, the high amount ofcapital needed for R&D and commercialization, and the longinvestment timeline usually required to bring drugs and other suchproducts to market, the article states.
Source | WashingtonPost