Venture Capital Investment Boston
Boston start-ups are struggling to attract venture capital investors which could be a sign that venture capitalists are uninterested in the businesses or that VC firms are just not as willing to commit capital in a still uncertain economy. In June, Massachusetts start-up companies received $292 million in venture capital investment.
But that number declined by more than half in July when start-ups brought in just $140 million. This is the lowest monthly total for the state in 2010 which has start-up firms concerned.
The $140 million comprised 26 deals, second lowest for the year over March’s 19 deals.
The numbers may sound bad, but they don’t necessarily mean the sky is falling, according to Michael Greeley, general partner at Flybridge Capital Partners and chairman of the New England Venture Capital Association.
Greeley said month-to-month numbers don’t provide the most reliable view of the current situation. Given the length of time it takes to complete a deal, the investment numbers for July reflect market conditions and investor attitudes three months earlier in the year or more.
Greeley thinks conditions are actually improving, citing health-care IT (which has taken in half of all year-to-date venture capital dollars in 2010), consumer Internet, cloud computing and clean-tech as bright spots.
“The news is all reasonably positive,” he said. Source
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