According to the MoneyTreeT Report from PricewaterhouseCoopers and the National Venture Capital Association, in the third quarter of 2007, venture capitalists invested $7.1 billion in 887 deals. Quarterly investment activity was slightly lower than the second quarter of 2007 when investment made was $7.2 billion in 1,000 deals. The quarter noted significant rise in both the CleanTech and Internet specific sectors.



Lefteroff, global managing partner of the venture capital practice, PricewaterhouseCoopers said, "In some cases, investment trends reflected top issues facing the nation. Clean Tech, for example, demonstrated its viability as an emerging sector by producing three of the top five deals this quarter, with one deal reaching the $100 million plateau, marking it as one of the largest deals ever for the sector."

The Software sector became the number one investment sector for the third quarter 2007 and the investment made was $1.11 billion in 187 deals. This investment level was much lower compared to the last quarter when investment made was $1.5 billion into 253 deals. Both Medical Device and Biotech investing slowed in the third quarter. Biotechnology investing was $1.1 billion going into 99 deals; Medical Devices had $825 million going into 76 deals in the quarter.

In the third quarter, the Clean Tech sector saw high investment levels with $844 million made in 62 deals which represented 80 percent rise in the dollar levels. Internet-specific companies invested $1.1 billion into 195 deals in the third quarter which represented a 17 percent increase in the dollar level compared to the second quarter. Media and Entertainment invested $509 million into 96 deals which is quite high compared to the second quarter when $464 million was invested into 77 deals. IT services, Healthcare Services and Financial Services are some other sectors which saw increase in both deals and dollars.

The U.S.-based venture capitalists, in the third quarter of 2007, invested $206 million into 31 deals in China which represented a decline of 52 percent in dollar volume from the second quarter when investment in 38 deals was $429 million. Also, in India, the U.S. venture capitalists, in the third quarter 2007, invested $248 million in 22 deals.