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Venture Capital Deals, Dollars Drop in NYC

Friday, April 20, 2012

Don’t look now, but venture capital financing, both dollar amount and deals, fell in the first three months of this year compared to the same time last year.

And New York City wasn’t immune to drop.

Data from Dow Jones VentureSource released Friday found that $6.3 billion was raised by U.S. companies from venture capitalists, down 18 percent.  There were 717 deals, down 9 percent.

“The declines were pretty evenly spread across industries, so there weren’t any big winners or big losers in the quarter,” said Jessica Canning, the company's global research director, in a press release.

In the New York City area, there were 75 deals, one less compared to the first three months of last year.  The size of the deals, however, were considerably smaller by comparison: $322 million raised in 2012 versus $658 million in the first quarter of 2011.

The largest deal was $27 million for Solidia Technologies in New Jersey, followed by $16.4 million raised for men’s clothing company Bonobos.

And in the on-going battle with Boston over which city can claim second place in venture capital financing, Boston raised over three times as much money, but for fewer companies. Unlike New York, many Boston start-ups are concentrated in the life sciences, which often require more money for lab space and manufacturing. In New York, consumer internet companies had the most success raising money from January to March.

Silicon Valley continues to lead the nation in venture capital financing.

A different report released on Thursday found there were 75 deals in New York City that raised $378 million.  That study from PricewaterhouseCoopers and the National Venture Capital Association used data provided by Thomson Reuters.

Nationwide, it found that venture capitalist provided $5.8 billion to 758 deals in the first three months of this year, a drop of 19 percent in dollars raised and a 15 percent drop in the number of deals.

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