The alternative energy sector – Venture capitalists invest millions in the first quarter of 2012

In investment news, it has been reported that in the first quarter of 2012, venture capitalists invested only 5.8 billion US dollars into 758 deals. Compared to the fourth quarter 2010, the total investments measured decreased by 15 percent in the number of deals and by 19 percent in terms of dollars. According to the President of NVCA, Mark Heesen, the decrease in investment concurs to shifts in the venture space. Nevertheless, this has allowed to only investing in the best entrepreneurs and technologies. This dynamic has created momentum in the early stage sectors, in which there are great opportunities and reasonable valuations. Life science and alternative technology sector investments, which are usually more capital intensive and longer term, are balanced by smaller information technology sector deals. This creates an abundance of opportunities for venture capitalists, entrepreneurs, and limited partners.

If the markets continue to be positive, investment levels will likely increase for the remainder of the year. The alternative energy sector is part of the traditional MoneyTree industries. Over the first quarter, this sector saw a 30 percent decrease in dollars to $951 million. Software got the most funding in the first quarter, with a decrease of 12 percent in deal volume and 18 percent in dollars, with $1.6 billion invested into 231 deals. The Biotechnology industry got the second highest level of funding. $780 million was invested into 99 deals in this quarter. This investment level demonstrates a 43 percent drop in dollars, and also a 14 percent fall in deals, compared with the fourth quarter of 2011. Internet-specific companies received more than $1 billion dollars for the eighth consecutive quarter, but the investment level dropped 3 percent in dollars and 23 percent in deals compared to the previous quarter. For more information, go to:

entrepreneur.com
wikipedia.org

The information supplied in this article is not to be considered as medical advice and is for educational purposes only.