Venture funding has dropped again—but how significant is this measure?

By Editor October 18, 2010

PricewaterHouseCoopers and the National Venture Capital Association have released their quarterly report on VC funding in the U.S.  The big takeaway is that funding from venture capitalists has dropped 31 percent quarter-to-quarter.  These reports get a lot of attention, and in the past they’ve been an indicator of sorts of economic health and the entrepreneurial climate.  This has been especially true for sectors like technology that have traditionally garnered large amounts of funding.  The big question now is what significance do these numbers have in a slowly-recovering economy?  In an overall climate in which VC investment is being frowned upon by many entrepreneurs, do fluctuations in VC activity really matter that much?  The entire report can be found here: MoneyTree Report.