VC investment slows, but okay for some sectors

A survey of 400 venture capitalists by the National Venture Capital Association shows that 2009 is
expected to be a slow year for venture investments across most business
sectors, but there are some bright spots:

  • While all industry sectors are predicted to see lower amounts of
    investment, clean technology is expected to have the brightest
    prospects.  48 percent of those surveyed believe clean technology investments
    will increase; another 20 percent predict unchanged investment levels for
    this sector.
  • 58 percent of respondents believe biotechnology investments will increase or remain stable.
  • 24 percent and 38 percent respectively believe that medical-device industry investment will increase or remain stable in 2009.

Early stage companies are not expected to fare as well.  60 percent of respondents expect a decline in seed investments and 64 percent also expect a drop in early stage investment activity.

The survey projects the industry will improve by 2010, with deal activity expected to increase by then.

–Mara Conklin

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