Venture capitalists funneled more money into U.S. startups in the second quarter, indicating continuing confidence that the economy is on the mend, the AP reports.
A study scheduled for release Friday shows that startup investments in the April-June period climbed 53 percent from the same three months in 2009 to $6.5 billion. This is the most money invested in startups since the third quarter of 2008.
Funding went to more seed and early-stage companies than in any quarter since mid-2007. That signals investors are feeling good about investing in new ideas even though the market for acquisitions and public stock offerings for more mature startups continues to be rough -- meaning it'll be awhile before venture capitalists see returns on their investments.
The study was conducted by PriceWaterhouseCoopers and the National Venture Capital Association based on data from Thomson Reuters.
Friday, July 16, 2010
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