Venture capital investment deals, values down in 2012

Venture capital investment in 2012 dropped 10% to $26.5 billion in 3,698 deals, which was down 6% from the year before, according to the MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association, based on data from Thomson Reuters released Friday.

In the fourth quarter, venture capital investment fell 14% to $6.4 billion in the same number of transactions — 968 deals — from the fourth quarter of 2011.

Dow Jones VentureSource, which also released venture capital transaction data Friday, shows a greater decline in deal value and a smaller drop in transaction volume. Venture capital firms invested a combined $29.7 billion for 3,363 deals, a 15% decline in capital and a 4% decline in deals from the previous year, according to VentureSource.

Venture capital firms in the fourth quarter of 2012 invested $6.6 billion in 733 venture capital transactions, down 20% in amount of capital invested and down 17% in deals from the fourth quarter of 2011, according to VentureSource.

The biggest deal in 2012 was San Francisco-based consumer product and services company, SquareTrade, which received $238 million from Bain Capital LLC and Bain Capital Ventures, according to MoneyTree data.