Today, SoCalTech reported that in Q3 2011, venture capitalists invested $603.2M in Southern California companies, marking an increase from last year’s $443.8M Q3 total.
The numbers come from a MoneyTree report published by PricewaterhouseCoopers and the National Venture Capital Association, using data from Thomson Reuters. The report also showed an $829.47M total for Q2 2011.
According to SocalTech, “In terms of industries, Software gained the most investments with a total of $165.7M invested, followed by Industrial/Energy–boosted by many clean technology investments–at $135.92M. Other large investment sectors were Biotechnology, with $65.8M invested, and Medical Devices, with $63.6M. On the other side, the most active firms investing in Southern California were DFJ Frontier, New Enterprise Associates, and the Tech Coast Angels, all with four deals each in the quarter; they were followed by 500 Startups, Siemer Ventures, Google Ventures, and Kleiner Perkins Caufield & Byers, all of whom had three deals each.”
Conversely though, the LA Times recently reported a significant drop in third quarter venture capital fundraising. “Venture capitalists, thrashed by months of bad economic news, are scrambling to find investors after pulling together the smallest pot of money in eight years,” the LA Times said. “Firms raised $1.7 billion in the third quarter — less than half the $3.5 billion collected in the same period last year and the lowest amount since the third quarter of 2003, said the National Venture Capital Assn.”
Nationally, the numbers are also trending downward. According to SoCalTech “Nationally, venture capital was down 12 percent in terms of dollars, and 14 percent in terms of deals, dropping to $6.96 billion across 876 deals, compared with Q2, when $7.9 billion was invested in 1,015 deals.”
But hey, at least now we can all read the not-so-sunny economic forecasts from our new iPhone 4S’s. And, with $165.7M going into software development, it shouldn’t be too long before those phones can read our news to us — while also toasting a bagel and brewing up a cup of coffee to go with it, of course.
