Posted by: BayAreaComRE | July 27, 2010

Venture Capital Investing is Making a Comeback, Seriously…

PriceWaterHouseCoopers put out their quarterly Money Tree report last week and things have really picked up! This is great news given all our coverage about tech being a major driver for the commercial real estate market (here, here and here). We’ve included an excerpt and the full report below.

WASHINGTON, July 16, 2010 – Venture capitalists invested $6.5 billion in 906 deals in the second quarter of 2010, according to the MoneyTree™ Report from PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA), based on data provided by Thomson Reuters. Quarterly investment activity increased 34 percent in terms of dollars and 22 percent in number of deals compared to the first quarter of 2010 when $4.9 billion was invested in 740 deals. In the first half of 2010, venture capital (VC) investments totaled $11.4 billion going into 1,646 deals, a 49 percent increase in dollars and a 23 percent increase in deals from the first half of 2009 when $7.7 billion was invested in 1,340 deals.

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Responses

  1. Thanks for sharing gentlemen, it would be interesting to see the breakdown of “software & internet specific companies” that are social media and cloud based. How does the demographic play out from a CMRE perspective? Are you seeing the majority of new clients from the Biotech space as they are recieving the most the most VC funding?

    Thanks,

    Karl Laughton

  2. Take a look at this Karl: https://www.pwcmoneytree.com/MTPublic/ns/nav.jsp?page=industry

    Although there isn’t a breakdown to the level you’ve mentioned, locally, cloud based companies like Salesforce.com and VM Ware are huge drivers from the CMRE perspective. The PWC report defines “Internet-specific” as ” a discrete classification assigned to a company whose business model is fundamentally dependent on the Internet, regardless of the company’s primary industry category.” I’d assume this is the category to focus on.

    Taking a look at Biotech, the Mission Bay sub-market is continuing to grow which has been coined as a biotech hub, and recently Bayer Healthcare and Nektar Therapuetics announced large initiatives to create a presence there.

    Long-term we’re going to be seeing more clean-tech clients grow as energy sustainability efforts move from crap-shoots to sure things.

  3. […] covered the tech comeback exhaustively (here, here, and here) and are glad the national attention is focusing on the […]


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