Is the dot com bubble back? Not if you look at total VC Investment, Deal Sizes or Follow On %’s


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There’s a growing notion coming out of the Valley that the hey days of high valuations and free investment dollars of the dot com boom are back in full swing.To the extent you’re on the beneficial end of this phenom, more power to you.

Diving deeper into VC investment numbers paints a different picture.

TOTAL VC INVESTMENT DOLLARS (Source)

MoneyTree Total Venture Capital Investment Dollars for and Q1-Q3 2010 was $4.93B, $6.94B and $4.82B respectively.

The same for Q1-Q4 of 2000 was $27.43B,  $26.66B,  $25.21B and $20.76B respectively.

Year over year differences aren’t rounding errors — we have a ways to go before it’s even in the realm of an apples to apples comparison.

AVERAGE VC INVESTMENT DEAL SIZES (Source)

Average deal size in Q1-Q3 of 2010 is $6.53M, $7.22M and $6.18M respectively.

Average deal size in Q1-Q3 of 2000 is $12.71M, $12.56M and $12.99M respectively.

Similar disparity is found when looking at how many new investments versus follow-on investments are taking place.

I wish I could take credit for this tid bit of information — that goes to a trusted Partner at Perkins Coie; I simply researched the numbers.

Here’s to a follow on post a year from now that’s considerably more optimistic.

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This entry was posted in Angel & VC and tagged , , , by Abrar. Bookmark the permalink.

About Abrar

Welcome to the narration of whatever is piquing my interest. I spent the first 6 years of my professional life in software development and project management at a start-up, a 10 person consulting company and ultimately reporting to the C.I.O. for a Fortune 150 conglomerate. I've spent the last 9 years in travel the travel industry: 2 years in managing travel technology projects (the systems travelers use like booking engines and fare databases) and the remaining 7 years in business development at an online travel agency specializing in international travel. I truly enjoyed growing from 2 people and near zero sales to a multi-national travel agency with an offshore call center, deploying an overseas sales office, securing key corporate clients, implementing strategic relationships within the travel industry and embracing technology as best we could afford to do. I stepped away from a day to day role in 2006 and have since specialized in advising companies in and outside of the travel industry on what to do and what not to do as they expand. My personal interests include international travel, reading books and spending time with family and friends. I love business, I love travel and I love technology.

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