Re-Blog From - AVC -Venture capital firms invested only $3 billion in 549 young companies in the first quarter,the lowest investment level since 1997

I found this Article today:

Claire Cain Miller wrote a story in Friday's New York Times about the "Money Tree Report" that is published every quarter by the National Venture Capital Association and Pricewaterhouse Coopers. The picture in the first quarter is not pretty. As Claire explains:

Venture capital firms invested only $3 billion in 549 young companies in the first quarter, the lowest investment level since 1997, according to the analysis, done by the National Venture Capital Association and PricewaterhouseCoopers.

The amount invested was down 47 percent from the fourth quarter of 2008 and 61 percent from the first quarter last year. 

But the numbers don't jive with my own experience and so I took a deep dive into them this morning. There are detailed reports available on the NVCA website that provide a lot of underlying detail.

I decided to look at the numbers by region and focused on the three regions I know best, Silicon Valley, New England, and the NY Metro area. I went back to 2004, when we started Union Square Ventures, and charted total amount raised in each region and total number of deals in each region.

What you see when you do that is that the decline is largely happening in Silicon Valley and it not nearly as pronounced in other regions.

A VC, Apr 2009

You should read the whole article.