California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

Dow Jones VentureSource released their second quarter venture capital numbers. 
They are reporting $5.27 billion across 595 deals invested in Q2, up 32% over
the first quarter of 2009, but down from $8.33 billion in 726 deals for Q2 of
last year nationally.

Dow Jones said, nationally, that health care investment led the nation in terms
of deal volume, with $2.23 billion across 184 deals, ahead of Information
Technology investments, which saw $1.88 billion in Q2.

As it pertains to California, Dow Jones Venture Source identified that Bay Area
investments totaled $1.83 billion, across 180 deals--roughly the same deal volume
as 2005, and a 41% drop from last year's numbers. As it pertains to Southern
California, Dow Jones only totaled $433M invested in 62 deals, which the firm
said was 59% from the same quarter last year.

A recent analysis by socalTECH, based upon their detailed tracking of venture
capital investment activity in Southern California, identifies that there was
around $932M in funding raised in the area in Q2, a rise from the roughly $700M
for Q1. Surprisingly, the numbers--based on information gleaned from funding
announcements, regulatory filings, and other sources are a far cry from those
presented by Dow Jones VentureSource.

I am Tim Johnson and this has been the California Business Minute.