Report: Venture capital for 'Net startups flat in '08

26.01.2009

From a broader perspective, young start-ups and clean technology reaped a bumper crop of venture capital money in 2008, a year that saw overall venture funding drop 8% compared with 2007, according to a quarterly summary of investment activity.

Seed-stage investments reached their highest level since 2000, jumping up 19% over 2007, capturing $1.5 billion.

Seed-stage companies also represented 57% of all companies receiving venture money for the first time.

For the year, clean technology companies -- solar energy and batteries -- pulled down $4.1 billion in 2008, a 57% increase over 2007, and accounting for 15% of all dollars invested by venture firms for the year, the study says.