InsightaaS: Readers of Across the Net will be familiar with the work of Louis Columbus; we have cited his Enterprise Irregulars posts in the past, and have also highlighted posts from Columbus’s A Passion for Research blog. In this A Passion for Research post, Columbus provides a perspective on VC investment in software firms, which for 1Q14 topped $4B, representing more than 40% of all US VC investments. The post includes links to source data and a detailed report (both from PwC and the National Venture Capital Association), and a set of clear graphics that illustrate VC investments in software. The closing observation is also interesting, noting that the "top regions where startups received funding in Q1 include Silicon Valley (50% of all VC funding), New England (11%) and the New York Metro Area (10%)." Given its startup dominance, it is easy to see why Silicon Valley is often seen as the hub of IT-enabled innovation!
Just over $4B was invested in software deals by venture capitalists (VCs) during Q1, 2014, four times as much as biotechnology.
Software deals netted out 42% of all dollars invested in the first quarter of 2014, with biotechnology receiving 11%. VCs invested $816M in IT Services or 9% of all dollars, making this the third largest investment category. Interest in IT Services continues to accelerate, with dollars invested in this category increasing 33% compared to the prior quarter.
These findings are from the latest edition of The MoneyTree Report, a quarterly study of venture capital investment in the United States produced by PricewaterhouseCoopers and the National Venture Capital Association (NVCA) using Thomson Reuters data...