PricewaterhouseCoopers LLP and the National Venture Capital Association released its latest MoneyTree Report, showing a year over year drop of 10.6 percent in Q3 venture capital investment in the New England region, and a 22 percent decrease from the previous quarter.
In Q3 2006, total venture capital funding was $578.1 million for 87 deals, with the average deal size totaling $6.64 million. Leading all sectors in funding was the biotechnology industry, bringing in $223.4 million in funding. The investments represent 39 percent of all New England venture capital funding, and the industry’s highest dollar total since Q3 2003.
The software sector noted a significant drop in funding, falling to $85 million from $171.9 million recorded in Q2. The industry had led all others in Q1 2006.
Rounding out the top 5 were telecommunications, medical devices & equipment, and computers & peripherals. Year to date, each of these sectors is exceeding investment levels attained in 2005.
