Three hundred deals raised nearly $2.8 billion, down 18% from nearly $3.4 billion raised in 357 deals in last year's second quarter, according to the Ernst & Young/ Dow Jones VentureOne Venture Capital Report issued last week.
Much of the recent investments went into companies that have been around for several years. The amount invested in later-stage companies in all categories of business increased 23% in the second quarter to $2.98 billion, up from $2.4 billion invested in last year's second quarter, and the number of deals rose from 193 to 210. All but two of the 10 companies receiving the largest investments were later-stage ventures.
IT companies represented many of these later-stage investments, says John Gabbert, VP of worldwide research for VentureOne. In fact, five of the top 10 were later-stage technology companies.