Venture Capital Boom: Biggest Quarter Since Dot-Com Era

by All Things D

CB Insights reports that the second quarter of 2012 saw venture capital investments reach $8.1 million in 812 deals, making it the largest quarter in over a decade.

The news comes in the face of a still sluggish American economy and rocky tech IPOs in recent months. Startups and expansion-stage companies can remain confident that venture capital spending doesn’t necessarily ebb and flow with those outside factors, as  funding increased 37 percent from the first quarter and 5 percent from last year, with the number of deals also inching up 3 and 4 percent over the same periods.

Startup entrepreneurs will find the CB Insights report particularly encouraging, as seed deals topped Series A fundings for the first time ever with 22 percent of all deals. Angel funding is not included.

Venture capital investment was strong in the ed tech, e-commerce, and enterprise sectors. Internet social investments dipped, while mobile social is soaring after the blockbuster Facebook-Instagram deal. Other winners include photo and video startups with 29 percent of mobile funding, and green tech thanks to large investments in Fisker Automotive and Bloom Energy.