Of course, the looming question after seeing this type of blowout quarter is whether or rather how long this can continue given VCs are having a tough time raising funds. If the final quarter of the year comes in at similar levels, we are looking at a $30B+ year for VCs which depending on final tallies could represent the highest level seen in the last decade. So at some point, something has to give. But until then, entrepreneurs can enjoy the VCs for however long they choose to “make it rain”
Before we get into specific notes on the quarter, it’s worth noting what we included and what we didn’t in the numbers as this quarter had some mega-deals which can and did greatly impact results. For example, the CB Insights database tracked Twitter’s $800M funding but only $400M is included in our data (as the other $400M was used to cash out existing investors). Also, when non-VCs (mutual funds, hedge funds, etc) invest in internet companies for example, we do not include those rounds unless there is also a venture firm participating in the round as well. As always, we recommend you also review our definitions and methodology on p. 59 of the report to see what is included vs. what is not as there tends to be a fair amount of misinformation out there about venture data.
To read the full, original article click on this link: Quarterly Venture Capital Report - Q3 2011
