PRINT THIS PAGE US venture capital investment holds steady in third quarter of 200327/10/2003. Source: AltAssets. 
 US venture capital investment has held steady in the third quarter of 2003, reinforcing hopes that market conditions have at least bottomed out and might indeed be slowly building towards a recovery. A total of $4bn was invested in 443 transactions, according to the Ernst & Young/VentureOne US Venture Capital Survey.
The number of venture-backed transactions fell by five per cent when compared to the previous quarter, but increased investment levels in the healthcare and products and services sectors sustained the total value of investments.
The survey also noted several positive indicators relating to liquidity including an increase in completed IPOs, IPO registrations and the median amount paid in M&A transactions. Compared to just two venture-backed IPOs in the first half of the year, six venture-backed companies completed IPOs this quarter.
‘The increased number of IPOs coupled with higher value M&A activity could be the start of a clearer path to successful exits, resulting in an increased willingness to provide capital to early-stage companies,' said Mark Sinclair of Ernst & Young.
Healthcare continued to command the largest share of venture capital investment and now receives 33 per cent of all venture capital invested. The quarter also showed a significant increase in second round financings, with companies raising substantially larger rounds at this stage of their financing cycle.
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