Dollars Flowing to Entrepreneurs

A couple of new quarterly data sets suggest that entrepreneurs are having an easier time finding capital in 2014.

According to the latest figures from the National Venture Capital Association, total venture capital deals from the first nine months of the year have already eclipsed 2013 totals ($33 billion to $30 billion). It marks the sixth consecutive quarter with more than 1,000 companies receiving VC investment in the quarter.

The NVCA points to new players in the field, but also to a changing economic landscape as well. Total VC investments are estimated to exceed $40 billion for the year – the highest amount since 2001 but a far cry from the $105 billion invested in 2000.

The top industry in terms of VC investment remains the software industry with $3.7 billion through 418 deals.

Entrepreneurs in the software industry appear to be the prime beneficiary of angel investments as well.

The latest Halo Report shows software companies received 11% of all investments – a ten point jump over the prior two quarters. The report also shows a rebound in the percentage of co-invested angel deals and the median size of those investments is $2.07 million – the highest it has been in five quarters.

[Flickr credit: 401(K) 2012]


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