The Industry Standard - Silicon Valley’s Q3 2008 total VC investments to top $3 billion? - Comments

Finally, some spending $ :)

David Kuan — Wed, 22 Oct 2008 13:55:32 -0400

Finally, some spending $ :)

Hi Matt, I've been

Eric Hill113600 — Wed, 22 Oct 2008 12:15:51 -0400

Hi Matt,

I've been hesitating on pulling the trigger here on a technicality. "In order for this bet to be judged favorably, the PricewaterhouseCoopers' Moneytree Q3 report must show over $3 billion total public investments in Silicon Valley." If you view the actual PwC report from the Moneytree site that is currently available (the site has yet to be updated), no where does it specifically call out Silicon Valley in the file.

I'm opening up the PwC report that has been made public and doing a search for "Silicon Valley" in the PDF file. I'm going to pull the trigger on this, however, because some of the PwC partners have released their data which seem irrefutable.

"Qtr: 2008-3 Investment($M): 2773.4
© 2008 PricewaterhouseCooper/Thomson Reuters/NVCA MoneyTree Survey
Data current as of 13-OCT-2008"

Thanks for you patience.

so how come this has not

Matt Healey — Wed, 22 Oct 2008 07:54:45 -0400

so how come this has not been judged yet? tying up the money for over 4 days when the information has already come out?

Silicon Valley Q3 VC is

David Kuan — Tue, 21 Oct 2008 12:02:18 -0400

Silicon Valley Q3 VC is $2.773B in 291 companies over 292 deals. Here is the official report from PricewaterhouseCoopers:

http://vx.thomsonib.com/VxComponent/static/stats/2008q3/0MAINMENU.html
http://vx.thomsonib.com/VxComponent/static/stats/2008q3/region_2101.html

Venture Capital Investment in Silicon Valley Region Companies
By Industry/Technology Sector
No.	Sector	Companies	Deals	Investment($M)
1	Software	79	79	735.5
2	Media and Entertainment	38	38	217.4
3	IT Services	27	27	165.1
4	Biotechnology	27	27	600.4
5	Medical Devices and Equipment	23	24	290.5
6	Semiconductors	21	21	135.1
7	Industrial/Energy	20	20	257.9
8	Telecommunications	16	16	131.4
9	Networking and Equipment	10	10	74.3
10	Computers and Peripherals	8	8	49.0
11	Financial Services	6	6	35.1
12	Consumer Products and Services	5	5	41.5
13	Business Products and Services	4	4	7.6
14	Other	3	3	11.7
15	Healthcare Services	2	2	6.0
16	Retailing/Distribution	1	1	3.0
17	Electronics/Instrumentation	1	1	12.0
-	Total	291	292	2773.4

and

Venture Capital Investment in Silicon Valley Region Companies
By Stage
No.	Stage	Companies	Deals	Investment($M)
1	Seed	8	8	31.2
2	Startup	79/td>	79	440.9
3	Oth Early Stage	22	22	61.8
4	Expansion	94	94	1204.7
5	Later Stage	89	89	1034.9
-	Total	292	292	2773.4

and

Venture Capital Investment in Silicon Valley Region Companies
By Major Metro Area
No.	Area	Companies	Deals	Investment($M)
1	San Jose	192	193	2094.1
2	San Fran/Berkeley	93	93	642.8
3	Other US	6	6	36.5
-	Total	291	292	2773.4

It does say Silicon Valley

David Kuan — Mon, 20 Oct 2008 17:53:04 -0400

It does say Silicon Valley which tops with $2.77B followed by New England at $834M.

From http://www.pehub.com/20863/q3-venture-capital-data-the-fall-begins/

Per usual, VCs were most likely to invest in companies based in Silicon Valley. The region received $2.77 billion, compared to just $834 million for New England. LA/Orange County, NY Metro and the Midwest rounded out the top five.

Other URLs provided also made reference to Silicon Valley. Probably a few more days before the actual Pricewaterhouse site gets updated with Q3 metric.

The actual report released

Eric Hill113600 — Mon, 20 Oct 2008 16:37:29 -0400

The actual report released on October 18, 2008, does not specifically state "Silicon Valley" in the roll-up category which this prediction is relying on.

While I'm certain this will be judged at 0%, I hesitate to throw the switch right now until the site updates itself and we have 100% verification. It sounds like it's going to land somewhere around 2.7 million, but I can't verify the exact figure today. As soon as the site is updated, I'm positive we'll be judging this at 0%.

Other similar

David Kuan — Mon, 20 Oct 2008 11:03:09 -0400

This is done deal. $2.77B

David Kuan — Sun, 19 Oct 2008 23:54:23 -0400

This is done deal. $2.77B for Silicon Valley in Q3 report. As of this comment, the Q3 figures haven't been reflected at the https://www.pwcmoneytree.com/MTPublic/ns/nav.jsp?page=region&region=2101 yet. This will only be a matter of time as this news is just hot off the press.

Also, from http://www.techcrunch.com/2008/10/18/vc-financings-for-internet-startups..., The MoneyTree Report from PricewaterhouseCoopers and the National Venture Capital Association came out this morning and it shows that total VC financings in the Q3 were down 7 percent compared to Q2.

VC confidence continues to

David Kuan — Fri, 17 Oct 2008 11:31:24 -0400

VC confidence continues to drop in Q3

Q3 VC $ down 33% relative to

David Kuan — Thu, 09 Oct 2008 17:13:16 -0400

Q3 VC $ down 33% relative to Q2

Also, higher office vacancy of more than 13% is also a sign negative signs to inflow of VC $

VC pipeline clogs up as

David Kuan — Fri, 03 Oct 2008 11:56:45 -0400

VC pipeline clogs up as economy stumbles

Credit woes begin to have

David Kuan — Mon, 29 Sep 2008 11:31:43 -0400

Credit woes begin to have trickle down effects on the VC community.

Not a positive sign. Silicon

David Kuan — Tue, 23 Sep 2008 17:04:42 -0400

Not a positive sign. Silicon Valley unemployment at 4yr high

Reference for Eric's last

David Kuan — Tue, 16 Sep 2008 16:51:01 -0400

Reference for Eric's last comment on no exists (http://www.nvca.org/pdf/Q2_08_Exits_Release.pdf and http://www.nvca.org/documents/CapitalMarketsCrisis.ppt)

Silicon Valley VC Confidence

David Kuan — Tue, 16 Sep 2008 13:34:26 -0400

Silicon Valley VC Confidence Index downtrend

Silicon Valley’s Q3 2008 total VC investments to top $3 billion?

The Standard — Tue, 26 Aug 2008 14:33:21 -0400

Prediction judgment on October 22, 2008: The PwC Q3 report shows that this prediction did not occur, which the community correctly predicted. The Q3 investment in Silicon Valley dipped slightly to $2.77 billion. Judged at 0% for not meeting the prediction criteria. -- The Industry Standard

Original prediction: According to the PricewaterhouseCoopers' Moneytree report, $2.955 billion in venture capital flowed into Silicon Valley's various industries in Q2 2008.

Topping the chart were software investments, followed by industrial/energy, and media and entertainment.

Venture capital in the Valley has bumpily recovered since the dot-com fallout from 2001, and not since then have total public investments reached over $3 billion.

Prediction: Will Silicon Valley's Q3 total public venture capital investment top $3 billion for the first time since Q2 2001? In order for this bet to be judged favorably, the PricewaterhouseCoopers' Moneytree Q3 report must show over $3 billion total public investments in Silicon Valley.

The Moneytree Q2 report was announced on July 19, 2008. It is expected that the Q3 report will be issued by approximately October 17, 2008. This prediction will be judged once the report is released to the public.

(Chart: PricewaterhouseCoopers' Moneytree report)