Global Venture Capital Activity Falls In The Third Quarter

Venture capital activity retreated around the globe in the third quarter with dollars invested falling 20% and the deal total slipping eight percent from the second quarter, according to Preqin.

Venture capitalists completed 1,226 deals during the three month period with the value of the transactions adding up to $9.3 billion, Preqin said in a press release.

In North America, 860 deals took place with $7 billion dollars invested. Deal value fell 19% and deal volume 4% from the second quarter, Preqin said. The region accounted for 70% of the transactions and 76% of worldwide deal value.

European deal making decreased by about a third, both in transaction volume and value, with $1 billion invested in 191 deals. Europe accounted for 16% of global deal volume.

Chinese deal volume increased slightly from the second quarter, but deal value tumbled 40% as worries about exit markets continued. Thirty-nine deals valued at $370 million took place, 3% of global deal volume, Preqin said.

India bucked the global trend with a 40% increase in capital invested. A total of $610 million went into 78 deals, Preqin said.

Investing in Israel was unchanged from the second quarter with $128 million going into 19 deals.

Internet investing remained hot. Software companies captured 17% of capital invested and healthcare companies attracted 22%. Angel and seed stage deals accounted for 22% of transactions and Series A deals accounted for 16%.

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