Study: US venture capital spending plummeted in Q1

The recession has taken a staggering toll on U.S. venture capital investments, resulting in a nearly 50 percent drop overall during the past three months, according to a new industry report released Saturday.

Venture capitalists pushed US$3 billion into 549 deals during the first quarter, compared to $5.7 billion and 866 deals in the last quarter of 2008, according to the MoneyTree Report released by PricewaterhouseCoopers and the National Venture Capital Association, which is based on data from Thomson Reuters.

All major industry sectors suffered double-digit drops and on balance, venture investment was the lowest since 1997.