Report: VCs invest more for software, less for life sciences
The software industry in the United States drew $4 billion in venture capital during the first quarter of this year, its highest level in 14 years, according to a report from PricewaterhouseCoopers (PwC) and the National Venture Capital Association (NVCA).
The investment amount marked a significant increase, according to data from PwC and NVCA, taking its information from Thomson Reuters.
Meanwhile, the biotech industry saw a significant drop in venture investment of 23 percent, although totaling about $1.1 billion. The number of deals also fell, by 21 percent, compared to the fourth quarter of 2013, according to the report. In total, investments in life sciences fell 10 percent, with 28 percent fewer deals compared with the previous quarter, the report cited.
"Investments into the software sector continue to remain healthy as investors look for companies with disruptive technology that challenges the norm," said Mark McCaffrey, global software leader and technology partner at PwC. "These companies are attracting significant funding from venture capitalists and non-traditional investors alike as their business models continue to provide real value across all sectors and get access to global markets."
Overall, venture capitalists invested $9.5 billion in 951 deals in the first quarter of 2014; investments to software companies accounted for 42 percent of investments and 44 percent of all deals in the first quarter, the report said.
WBJ Web Partners
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