While the absence of venture capital in Louisiana is often cited as the biggest barrier to growing the high-tech startup eco-system, for the first time since recession hit in 2008, national venture capital performance broadly improved over last quarter according to a study by Cambridge Associates for the National Venture Capital Association (NVCA). Although the U.S. Venture Capital Index for 15-year returns actually pointed to a small dip, the other time horizons (1-, 3-, 5-, 10- and 20-year returns) all moved forward thanks in part to improved exit markets and more favorable portfolio valuations.
Meanwhile, another NVCA study indicates a continued trend of more money invested into fewer deals. According to the data, VCs invested $5.9 billion in 736 deals during the first quarter of 2011. Closing out 2010 those figures were $5.6 billion invested in 827 deals.
Which industries saw the most action? According to the MoneyTree Report, the software industry topped the list with $1.11 billion, followed by: Industrial / Energy ($1.03 billion); Biotechnology ($784 million); Medical Devices & Equipment ($602 million); and, Media & Entertainment ($554 million).