CALIFORNIA BUSINESS MINUTE
VC Activity
07-20-10
Hi, I am Tim Johnson and welcome to the California Business Minute
Investments by venture capitalists in California were up both in terms of deals
and dollars in the second quarter of 2010 to nearly $4 billion according to the
latest numbers released by PricewaterhouseCoopers and the National Venture Capital
Association.
This was mirrored in both ends of the state. Investments by venture capitalists
in Southern California were up, both in terms of deals and dollars in Q2, according
to the latest numbers from PricewaterhouseCoopers and the National Venture Capital
Association (NVCA). According to the latest report from the two, using data provided
by Thomson Reuters, Southern California saw $857.3M in 91 investments, up significantly
from the $451.8M and 69 deals for Q2 of last year. Quarter-to-quarter growth was also
good, going from $627.4M and 80 deals in Q1. Los Angeles saw $407.2M in 45 deals,
Orange County saw $279.5M in 21 deals, and San Diego saw $170.6M invested in 24 deals.
Both LA and OC were both up in terms of deals and dollars. Southern California's
venture totals were significantly boosted by clean technology, and more specifically,
financing for electric car manufacturers. Investments in the Industrial/Energy sector,
which includes electric car manufacturers, was the single biggest area for investments
in the quarter in Southern California, totaling $231.1M.
In the Silicon Valley firms raised $2.91 billion in venture capital, up significantly
from the $1.57 billion raised by companies in Q2 of last year. According to the two
sources again using data provided by Thomson Reuters, quarterly investment activity
was up by 34 percent in terms of dollars, and up 22 percent in terms of deals, compared
with Q2 of last year. Among the strongest industries for funding were Clean Technology--
which doubled in dollars invested in Q1--and Life Sciences, which jumped 52 percent in
terms of dollars funded. The news was welcomed specifically given an industry which was
battered by the economy last year.
I am Tim Johnson and this has been the California Business Minute.
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