US venture investment lowest in 11 years

The US venture capital industry continued to contract in the first quarter of the year, new data from Dow Jones VentureSource shows.  Venture capitalists invested just $3.90 billion in US companies in the  quarter, a 50% decline from the nearly $7.78 billion over the same  period in 2008 and the lowest quarterly investment total since 1998.  Only 477 venture deals were completed in the period, well below the 706  deals done in the first quarter last year and the industry's lowest  quarterly deal total since 1996.

"We're seeing continued retrenching in the venture capital industry,"  said Jessica Canning, director of global research for Dow Jones  VentureSource. "Over the past several quarters, VCs have pulled back  significantly on early-stage investments in the USA, across all  industries. During the economic downturn, investors will continue to  focus on nurturing their strongest, existing portfolio companies, and  keep their eyes open for the next set of opportunities."

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