The buttoned-down IT industry outshone flashy consumer Internet startups at raising money in the first quarter, logging a big increase in U.S. venture capital investments, especially in enterprise software. Venture capitalists invested US$2 billion in 257 deals with young IT companies in the quarter, according to a quarterly survey by Dow Jones VentureSource. That marked a 14 percent increase in dollars and a 2 percent increase in the number of deals compared with the first quarter of 2011, making IT the only large industry where both figures rose. By contrast, investors trusted 76 percent less money to consumer Internet companies, in 17 percent fewer deals, than they did a year earlier. That segment attracted $375 million in 88 deals in the first quarter of this year, according to VentureSource. The survey noted that one reason for the big drop may have been the strong quarter a year earlier, when hot companies such as Zynga and LivingSocial raised large amounts of money: $870 ...
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