2013 annual venture investment dollars rise 7%

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According to the MoneyTree Report by PricewaterhouseCoopers LLP and the National Venture Capital Association (NVCA), venture capitalists invested $29.4 billion in 3,995 deals in 2013, an increase of 7% in dollars and a 4% increase in deal volume over 2012 levels.  The full Q4 and FY 2013 investing trends are available here.

A couple of interesting highlights for 2013:

  • Internet-specific companies captured $7.1 billion, marking the highest level of Internet investment since 2001.
  • Investments into the software industry also reached their highest level since 2000 with $11.0 billion flowing into 1,523 deals, which accounted for 37% of total venture capital invested for the year.
  • Biotechnology investment dollars rose 8% while volume decreased 2% to $4.5 billion going into 470 deals, placing it as the second largest investment sector for the year.
  • Investments into Seed Stage companies increased 14% in terms of dollars but fell 26% in deal volume, with $943 million going into 218 companies, the lowest number of seed deals since 2003.
  • Early Stage investments experienced a 17% increase in dollars and a 15% increase in deal volume, with $9.8 billion going into 2,003 deals.
  • Expansion Stage investments increased by 4% in dollars and were flat in terms of deal volume, with $9.8 billion going into 984 deals.
  • Later Stage investments experienced a 1% increase in dollars and a 6% decrease in deal volume, with $8.8 billion going into 790 deals.