Software companies regained the No. 1 spot for venture capital investing in the third quarter as big dollars for cleantech companies dried up, according to the MoneyTree Report.
The MoneyTree Report, penned by PriceWaterhouseCoopers and the National Venture Capital Association shows that third quarter VC funding fell 31 percent in dollars and 19 percent in the number of deals from a strong second quarter.
In the third quarter, VCs invested $4.8 billion in 780 companies. That's down from $6.9 billion in 962 deals in the second quarter. In the third quarter a year ago, VC funding was $5.2 billion. Early-stage funding was stable and represented 35 percent of all VC deals. Seed rounds accounted for 11 percent of total deals.
What happened? The second quarter featured a bevy of large founds for cleantech companies and the third quarter didn't. However, all industries saw a slowdown in investment.
Among the key data points: