San Jose, Calif. - Silicon Valley companies received just $1.16 billion in venture capital during the first quarter, the smallest amount since the second quarter of 1997, according to the latest MoneyTree Report from PricewaterhouseCoopers (PwC) and the National Venture Capital Association (NVCA).

The region saw just 173 VC deals during the period, the lowest total in nearly 13 years.

"These numbers clearly demonstrate that the venture capital industry is not immune from the current economic downturn," said Mark Heesen, president of the NVCA.

"Venture capitalists have slowed their investment pace in order to work with existing companies that are not able to exit the venture portfolio due to the shuttered IPO window and the weakening acquisitions market."

The local numbers reflected a national trend, in which venture capitalists invested just $3 billion, down 47% from the prior year.

Poll: Silicon Valley VC Investments in Q1 Plummet - Have We Reached The Bottom?

Related Links:
http://www.pwcmoneytree.com

http://www.nvca.org