Venture capitalists heart software‎

Aug 1
08:14

2012

Ramyasadasivam

Ramyasadasivam

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That’s the word from the latest MoneyTree Report from PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA), based on data provided by Thomson Reuters.

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The software industry received the highest level of funding for all industries,Venture capitalists heart software‎ Articles the report states, with $2.3 billion out of $7 billion invested during the second quarter of 2012 — the highest investment total for the sector since the second quarter of 2001. 

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This level of investment represents a 38 percent increase in dollars, compared to $1.7 billion invested in the first quarter.  The software industry also had the most deals completed in Q2 with 290 rounds, which represents a 16 percent increase from the 251 rounds completed in the first quarter of 2012.

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Internet-specific companies received the second highest level of investment in more than a decade with $1.8 billion going into 261 deals, a 22 percent increase in dollars and a 31 percent increase in deals from the first quarter, when $1.5 billion went into 199 deals.

The MoneyTree analysis puts investment in Internet companies as surpassing the $1 billion dollar mark each quarter for the past two years, and two of the top 10 deals for the quarter were in the Internet-specific category.  “Internet-specific” is a discrete classification assigned to a company with a business model that is fundamentally dependent on the Internet, regardless of the company’s primary industry category.