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The National Venture Capital Association (NVCA) and PricewaterhouseCoopers LLP (PwC) issued their report on third-quarter venture capital investment this morning, coming in with a figure below that provided by other industry trackers — but heralding a possible continued rebound in the straitened venture capital sector.
According to the report, venture capitalists put $4.8 billion to work over 637 deals in Q3. The dollar amount is well below the $7.2 billion NVCA and PwC logged in Q3, 2008. Deal activity is also down from the year-ago period, in which the organizations tracked 663 deals.
Still, in a joint press release issued this morning, the two organizations called the numbers “encouraging,” noting that $4.8 billion marks a significant increase in dollar amount over the second quarter of 2009, when they logged $4.1 billion in 657 deals.
NVCA and PwC tracked fewer deals and fewer dollars than the $5.1 billion over 616 Q3 deals reported by Dow Jones VentureSource over the weekend. The VentureSource numbers appeared to show VC investing bumping along an apparent bottom reached in Q2, 2009, when venture capital financing halted a yearlong downward trend with $5.4 billion over 595 deals.
The NVCA/PwC numbers put the U.S. venture industry on track to invest over $15 billion in 2009. VC hasn’t fallen short of $15 billion since 1997, when $14.2 billion went into venture-backed companies, according to the organizations’ historical numbers.
So far, two industry trackers have weighed in with Q3 numbers, in addition to the NVCA/PwC report and Dow Jones: On Oct. 13, New York-based VC data startup ChubbyBrain reported $6.1 billion over 680 deals. Yesterday, the West Coast technology magazine TechCrunch reported $7.7 billion over an unspecified number of deals — a number nearly on par with what TechCrunch recorded in Q3 2008.
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