Still, officials strove to put a positive spin on both the current environment and the road ahead.

"One quarter does not a trend make. We know from reports from the field that a number of deals were started in Q1, but it's taking longer to get them done and they are closing in the second quarter," said John Taylor , vice president of research for NVCA, during a conference call.

Software companies garnered the biggest chunk of venture money during the first quarter, with $614 million over 138 deals. That represents a drop of 42 percent and 34 percent, respectively, compared to the previous quarter.