Shrinking venture capital deals impact IT

Venture Capital firms are facing tough times these days. They logged just 549 deals during the first quarter of 2009 with $3 billion in investment. That's almost 50 percent less than the $5.7 billion investment and 866 deals in the last quarter of 2008, according to the MoneyTree Report released by PricewaterhouseCoopers and the National Venture Capital Association.

Venture investment has long been an essential ingredient in getting young tech companies up and running. Now VC funds are the lowest since 1997. Still, software companies did the best, among other investment areas, in the first quarter, despite seeing a saw a drop of 42 percent. Software companies managed to grab $613 million over 138 deals. Companies with business models dependant on the Internet, attracted $556 million down from $804 million in 2008's last quarter.

For more on investment strategies:
- see this CIO.com article

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