Venture Fundings Hit $29.4 Billion in 2007: The Year in Charts

Erick Schonfeld

Erick Schonfeld is a technology journalist and the executive producer of DEMO. He is also a partner at bMuse, a product incubator in New York City. Schonfeld is the former Editor in Chief of TechCrunch. At TechCrunch, he oversaw the editorial content of the site, helped to program the Disrupt conferences and CrunchUps, produced TCTV shows, and wrote daily... → Learn More

Monday, January 21st, 2008

The year-end VC financing numbers are in from PricewaterhouseCoopers and the National Venture Capital Association. Total venture fundings for the year were up 10.8 percent to $29.4 billion, and up 11.5 percent for the fourth quarter of 2007 to $7 billion. That makes it the fourth straight quarter where VC deals were above the $7 billion mark, and the highest yearly total since 2001. Here are some charts that show the trends in VC financing.

2007 was a year of steady gains for VC investing, the highest since the $40.6 billion invested in 2001 (and still well-below the $105 billion in 2000):

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But as the cycle matures, later-stage deals take up a bigger chunk of the pie, accounting for 41 percent of of the capital invested last year compared to 37 percent in 2006:

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If you look at just the number of deals, though, there was still an 11 percent increase in the amount of early-stage deals, so no one is going hungry:

vc07-charts-6.png

Here is the industry breakdown. Software and biotech dominated the deals, with about $5 billion each, followed by medical devices, energy, and telecom:

vc07-charts-3.png

Within the software segment, VCs poured $4.6 billion into Internet deals alone, up 12 percent from 2006:

vc07-charts-5.png

And, not surprisingly, clean tech was perhaps the fastest-growing sector, finishing the year with $2.2 billion in VC deals:

vc07-charts-4.png

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