VCs Invested $6.9B In 841 Deals In Q1 2013, Funding Up 17 Percent, Deal Activity Highest Since Dot-Com Days

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Private company M&A and venture capital database CB Insights has issued its Q1 2013 report on venture capital and deals. According to the report, VCs invested $6.9 billion across 841 deals (eclipsing a Q3 2012 high), which is the highest level since dot-com days, says CB Insight. You can find a full copy of the report here.

One of the most interesting data points noted by CB Insights was that Series C, D and E all saw an increase in shares of funding dollars while Series A and B both saw declines. Consistent with the reports we’ve seen over the past few months, seed funding continued relatively the same despite concerns about a Series A crunch.

Deal volume was up 7 percent from last year, and funding, relative to Q1 2012, was up 17 percent. Seed VC activity was fairly flat on a sequential basis (194 seed VC deals in Q1 2013 vs. 190 in Q4 2012) but year-over-year VC seed deals are up 31 percent (148 in Q1 2012). Internet deal activity climbed to multi-year highs hitting 379 deals (best since Q1 200), but social as a category made up only 4 percent of deals. CB Insights attributes this jump to the boom in enterprise deals. Clean-tech deals and dollars also hit multi-year lows.

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Investment dollars within mobile hit $718 million in Q1, a high beat only by Q3 2012, which saw $968 million in investment. The actual amount of deals dipped to 106 from 122. As a sub-industry in mobile, security is seeing a boom, with over 30 percent of funding dollars for the quarter.

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Specifically for Internet companies, deal activity and funding to Internet companies increased 10 percent and 12 percent from Q4 2012, respectively, and climbed 16 percent and 35 percent on a year-over-year basis.

In terms of states for the second time in the last two years, New York beat out Massachusetts on overall number of deals and funding in a quarter (behind California). In fact, CB Insights says Massachusetts hit a five-quarter low for deal share. As CB Insights reports, “The holy trinity of California, New York and Massachusetts was disbanded in Q1 with Mass. falling out of the top 3 for both deals and dollars.” Utah replaces Massachusetts for the third spot.

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