Submitted by Yi-Wyn Yen01.21.2009
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This prediction is closed and has been judged.
We all knew venture capital funding's drying up. But just how bad was it? For the last three months of 2008, VC investment to private companies fell 30% from $7.9 billion to $5.5 billion from the same period a year ago. Q4 funding was at its lowest level since 2005, according to VentureSource.
It was particularly bad for U.S. tech startups, which received just $2.2 billion in Q4, or 39% less than the year-ago period of $3.6 billion. IT investing was at its lowest level since Q1 1997. As the pot gets smaller, so do the number of deals, which dropped 25% for Q4 to 266 from 355.
Prediction: U.S. investing for tech companies will drop 50% or more in Q1 2009 from the same period a year ago. The IT sector secured $3.88 billion in Q1 2008, which means IT investments must fall below $1.95 billion for Q1 2009. VentureSource data will be used to judge this prediction.
Image: Digiart2001/Flickr
Price History
Prediction Statistics
| Betting Closes: | Apr 20 2009 | Current Consensus: | 93.40% | Total Bets: | 28 |
| Today's Change: | 0% | ||||
| Life Time High: | 95.48% | ||||
| Life Time Low: | 35.43% |
Comments
Does this include those same companies going IPO and receiving equity funds? Or does this only pertain to venture capital?
This does not include IPOs. Just venture capital funding.
Looks like the fall is above 50% although there is no segmented IT sector info. specific to the above.
http://online.wsj.com/article/BT-CO-20090418-700002.html
@Marc, looks like you are right. The reported number here shows $1.68B.
From http://ca.news.finance.yahoo.com/s/18042009/31/link-f-prnewswire-u-s-ven...
According to VentureSource, the Information Technology (IT) industry saw its lowest level of investment since 1997 with $1.68 billion invested in 231 deals in the first quarter of 2009. This marks a 52% drop-off from the $3.48 billion that was invested in 370 such deals during the same period last year. The deal count is the lowest for the IT industry since 1995.
This is a done deal. VentureSource is the source that is to be used for judgment and it reports 52% which meets favorable criteria.
@TIS, judgment is due on this. See prior comments for supporting data.
Judged, based on the press release cited by David.
Thanks!
Ian Lamont
Managing Editor
The Industry Standard
twitter.com/ilamont
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