Report: Investments in U.S. Venture-Backed Firms Stall in Q3

Authored by Mark Hefflinger on October 19, 2009 - 8:21am.

Washington - Following an uptick in the second quarter, investments in U.S. venture-backed companies stalled in the third quarter, putting 2009 on track to be the worst investment year since 2003, according to new data from Dow Jones VentureSource.

Venture capitalists invested $5.1 billion in 616 deals during the quarter, down 4% from the previous quarter and 38% from the same period in 2008.

"The slow recovery we've seen for venture capital has faltered," said Jessica Canning, director of global research for Dow Jones VentureSource.

"As liquidity and fundraising lag after the economic meltdown in 2008, investors have no choice but to keep a tight rein on investments until the industry is on more solid ground."

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