Recent statistical reports indicate that the difficult environment for companies seeking venture capital funding continues unabated:
- The recently released “MoneyTree™ Report by PricewaterhouseCoopers and the National Venture Capital Association based on data from Thomson Reuters” reported continued low levels of venture capital financing activity during Q2 2009 and projected that investment levels for 2009 will likely resemble those from 1996 and 1997. Deal volume in Q1 2009 and Q2 2009 declined 42% and 40%, respectively, compared to Q1 2008 and Q2 2008, and dollars invested in Q1 2009 and Q2 2009 declined 58% and 51%, respectively, from the comparable prior year periods.
- The NVCA and Thomson Reuters recently reported that although liquidity event activity for venture-backed companies improved mildly in Q2 2009, it remained far below traditional levels.
- The NVCA and Thomson Reuters also recently reported that the number of venture capital firms involved in fundraising activity during Q2 2009 dropped to the lowest level since Q3 1996 and that the number of dollars committed in Q2 2009 dropped to the lowest level since Q1 2003