Arlington, Va. - Venture capitalists invested $28.3 billion in 3,808 deals in 2008, marking the first yearly decline of total investments since 2003, according to a new report from PricewaterhouseCoopers and the National Venture Capital Association (NVCA).

The figures represented an 8% decrease in dollars and a 4% drop in deal volume from 2007.

Investments in the fourth quarter totaled $5.4 billion, the lowest amount since the first quarter of 2005 and a 26% drop from the prior quarter.

The notable exception, however, came in the clean technology sector, which saw a 50% increase in investment dollars last year.

Seed stage companies also received more money, reaching the highest level seen since 2000.

"The stability of seed and early-stage deals as a percentage of total deal volume suggests that venture capitalists are continuing to fund very young companies, giving credence to the philosophy that an economic downturn is a time ripe with opportunity," said Mark Heesen, president of the NVCA.

Related Links:
http://www.nvca.org/pdf/08Q4MTReleaseFINALwires.pdf (PDF)

http://www.nvca.org/ffax.html