Given the vast supply of early-stage startups and limited reserves of midstage venture capital, it stands to reason that entrepreneurs will see fiercer competition for Series B funding. And while VCs don’t appear to be cutting back at that stage, they aren’t bulking up either.
A VCJ analysis of Series B rounds for this year found no dramatic year-over-year change in aggregate funding levels. Between January and September, VCs invested $773 million in Series B rounds for 63 companies, according to Thomson Reuters (publisher of VCJ).
In 2012, VCs invested $686 million in Series B deals in the first nine months of the year, and $1.3 billion over the entire year.
Geographic distribution this year, as in years past, also was heavily weighted to Silicon Valley, home to nearly two-thirds of the companies
raising Series B rounds.
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