Boston Business Journal – July 17, 2010
VC showing signs of recovery
Boston Business Journal – by Galen Moore
Industry tracker Dow Jones Venturesource hailed a return to pre-recession levels in venture capital investing in the second quarter of 2010, but when combined with a dismal Q1, the venture industry remains on track for a $20 billion to $25 billion year in 2010.
VCs invested $7.7 billion over 744 deals in Q2, a 26-percent increase over the dollars invested, and 13 percent above the deals done in the same period in 2009.
Massachusetts enjoyed its share of the upswing, with $792.2 million invested over 81 deals – a 19 percent increase in activity, and a 56-percent increase in volume, over the year-ago period, when investors put $508.2 million to work over 68 deals.
However, New York was a fast follower, with $412.2 million invested in 63 deals. California remained the leader by far, with $3.96 billion invested over 296 deals.
Nationally, average deal size broke the $10 million mark for the first time since before the fall, 2008 financial collapse, reaching $10.4 million on the strength of outsize deals in the energy sector, where the average deal sizze shot to $43.8 million, compared to $22.6 million in Q2, 2009.
The New England region’s largest energy deal on the quarter was Westborough-based lithium ion battery maker Boston-Power Inc., which took $62 million – up from $60 million initially reported – from existing investors Foundation Asset Management, Oak Investment Partners, Venrock and Gabriel Venture Partners.
However, the region’s biggest deal of the quarter closed in the IT sector. In April, Summit Partners invested $96.5 million Casa Systems Inc., an Andover-based company that makes network equipment for delivering video over cable.
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