Sunday, January 25, 2009

Seed Financing Up in 2008?

While I admit I may be making a silk purse out of a sow's ear, so to speak, I found two glimmers of hope in the NVCA's 2008 annual report (as covered by Stacey Higginbotham of GigaOm).

First, the aggregate amount of seed financings was actually up in 2008. This may reflect the shift away from the standard deal and VC fund size towards the small that I mentioned here and here. This also makes sense, since seed financings are almost always long term -- the current economic environment is really irrelevant. I do have to note, however, that seed financings fell off a cliff in Q4 08 -- pretty much just like everything else.

Second, not all sectors saw decreases in 2008. The media and entertainment sector and the cleantech sector both saw slight upticks in deal volume. Again, this foots with my earlier posts on the shift of VC funds and deal size to the large -- of which cleantech is representative.

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Dividends and Preferences by Hank Heyming is licensed under a Creative Commons Attribution 3.0 United States License.