Venture Capital Picks Up Speed

Venture Capital Picks Up Speed

July 15, 2011 Off By Chris

Our Cassidy Turley Insights white paper on venture capital provides encouraging news about the economy and where the largest economic engines for the future may come.

Jobs and Venture Capital.  Though job creation dipped in May and remains the biggest concern to the economy, some of the greatest increases in office occupancy are happening in markets leading in venture capital (VC) funding and activity. Leading markets are Silicon Valley, San Francisco, New York, Boston metro, New England and Washington DC. The companies funded are expanding their commercial real estate holdings, largely in anticipation of expanding their payrolls.

Venture Capital is averaging $2.3 billion per quarter.  This level of activity is up $1 billion from it’s recent low in 2009. In fact, we haven’t seen funding like this since prior to the recession in 2006 and there are more investment players getting into the mix than before. Who is receiving all the cash? Largely technology firms. The biggest increases this quarter came from the internet and green tech/clean tech fields, where a couple of mega-financings helped to boost totals. Over the next 12 months, look for those markets with a strong tech presence to show strong growth. Look for venture capital deals to increase and more incubators and start-ups to get into the mix.

These Technology Sectors are among the top VC recipients

    – Software
    – Internet specific companies
    – Biotech
    – Clean tech/green tech
    – Medical device manufacturers

What are you seeing in your industry?  Let me hear from you. If you are looking for funding or have just received it, what changes are you seeing in today’s market compared with the past? Is there new excitement or barriers that haven’t been there before? Share a bit of your story with a comment below.