From Bevans Branham of Palm Springs, CA:
Uber, a popular on-demand car service company, has a bit more cash-on-hand after this year’s third quarter investments.
According to an article posted on VentureBeat.com, Uber received $258 million in the third quarter of 2013, which made the organization #1 for venture capital raised in that time period; this in a market where over 10,000 startups received $7.8 billion in funding from venture capitalists.
The article goes on to break down VC spending by industry, but overall, the author writes, the market saw a 12% increase in investment from the second quarter, as well as a smaller increase when compared to 2012 numbers.
But the most important statistic, he argues, came out of the software industry, which received more investment money than in any quarter during the last 12 years. This record number manifesting in $3.6 billion in investments, which, according to the article, shows a 23% jump from the second quarter.
Why such a large increase? VentureBeat attributes some of the leap in funding to major deals such as $196.5 million for Palantir, a data analysis software company; $80 million for Clarabridge, which provides software to analyze unstructured data; $70 million for an organization called Deem, responsible for making business management software; and $65 million for Toa Technologies, a firm the produces mobile workforce software.
The article also discusses a report conducted by PriceWaterhouseCooper, The National Venture Capital Association, and Money Tree, in which Mark McCaffrey of PwC told reporters, “It’s an exciting time to be an entrepreneur with a software company… The continued increase in valuations for innovative and disruptive technologies in software-related companies, coupled with the increase in exit activity, is driving venture capitalists to make more investments in this space.”
And investors are even more optimistic about the future. According to the article, not only will 2013 investment numbers likely trump the previous year, but many of these investments, particularly in software fields, reflect early-stage funding. In other words, there’s good reason to believe the numbers will be on the rise in the near future.
“We are balancing this optimism, however, against the recognition that VCs are still trying to gain exits for the previous generation of companies,” John Taylor of the National Venture Capital Association told reporters. “There is some improvement on that front, but we would like to see it strengthen even further.”
Biotech was a distant second in terms of industries, the author writes, raising $852 million in the third quarter.
via Bevans Branham Venture Capital http://bevansbranhamvc.com/venture-capital-deals-jump-12-in-q3-uber-leads-the-way/
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