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PRINT THIS PAGE Q3 US venture capital investments in later stage companies rises to four-year high25/10/2005. Source: AltAssets. 
 US venture capital investments in later stage companies rose to $2.6bn in Q3 2005, a four-year high. This followed the upward trend that began in late 2004, according to research published in the MoneyTree Survey by PricewaterhouseCoopers, Thomson Venture Economics and the National Venture Capital Association.
Year-to-date, later stage amounted to $7.2bn, approaching full-year 2004 figures of $7.6bn, which was a three-year peak.
The sustained dominance of later stage investing over the past 12 months reflects venture capitalists continued support of existing portfolio companies via additional follow-on rounds.
Although funding for start-up and early stage companies fell back in the third quarter compared to the second quarter, it was still above the first quarter.
Investing in expansion stage companies fell to its lowest point of the year in the third quarter: $1.6bn in 250 companies.
Mark Heesen, president of the National Venture Capital Association, said, 'We are beginning to look more closely at early stage investment levels, which have not risen at the pace we would have expected. It appears to be taking slightly longer for some firms to deploy and announce these early deals - in some cases due to stealth practices. We will be tracking this closely in the coming quarters.'
Tracy Lefteroff, global managing partner of the venture capital practice at PricewaterhouseCoopers, added, 'Money follows opportunity. Clearly, certain industry segments are more attractive than others right now. And, longer-term prospects are being balanced with shorter-term ones as venture capitalists invest in both early and late stage companies.'
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