Venture capital investments leapt 32 percent in the second quarter to hit $5.27 billion, up from $4 billion in the first three months of the year, the lowest level in a decade, according to Dow Jones VentureSource.
The quarter was still well below the $8.33 billion level recorded in the second quarter of 2008. The rebound comes amid a shift in dynamics to fewer smaller deals.
The quarter also was the first in which investments in health care outpaced those in information technology. The health care sector received $2.23 billion in investments in the quarter compared to IT which attracted $1.88 billion.
"Investors are diversifying their portfolios away from traditional investment areas like biopharmaceuticals and software toward segments like medical devices and information services while also pulling back on how much they are willing to invest in each deal," said Jessica Canning, director of global research for Dow Jones VentureSource.
Many major hardware electronics categories were down in the second quarter from the first three months of the year. Investments in communications slipped from $296 million to $258 million, computing fell from $237 million to $184 million and semiconductors slid from $170 million to $156 million.
No comments:
Post a Comment