Venture capital investments drop

With troubling economic times ahead, it is little surprise to hear venture capitalist investments have dropped sharply in the United States.

With troubling economic times ahead, it is little surprise to hear venture capitalist investments have dropped sharply in the United States.

According to venturebeat.com, venture capitalists invested just $US7.1 billion between July and September, down 7% from the previous quarter and $700 million less from the same time last year.

But the number of first-time venture financings dropped 12% from the previous quarter, to $US1.5 billion, and the number of deals also dropped 20% to 209.

And future doesn’t look good. VentureBeat editor Matt Marshall says the outlook is gloomy: “For startups with little or no angel or VC backing, forget about raising money.”