Venture capital investment deals, values drop in first quarter

U.S. venture capital firms invested $5.9 billion in 863 deals in the first quarter of 2013, a 12% drop in the amount of capital invested in portfolio companies and a decline of 13% in the number of deals from the fourth quarter of 2012, according to the MoneyTree Report from PricewaterhouseCoopers and the National Venture Capital Association, based on Thomson Reuters data.

Venture capital firms invested $6.3 billion in 868 companies in the first quarter of 2012.

Some 40% of the total capital invested in the first quarter of this year — $565 million — was in software companies, up from $551 million invested in the fourth quarter of 2012 and $330 million invested in the first quarter of 2012.

Clean energy, which includes alternative energy, pollution and recycling, power supplies and conservation, fell 35% in dollars invested and dropped 13% in deals from the fourth quarter to $368 million in 61 transactions. This is the lowest investment in clean technology since the first quarter of 2006 when $355 was invested in the sector.

The largest transaction in the first quarter was the $343 million investment in Voice over Internet Protocol company GENBAND, by One Equity Partners, Seven Rosen Funds and Venrock.