NEW YORK (AP) — A new report says funding for U.S. startups declined in the April-June period from a year ago, as venture capitalists funneled less money into fewer deals.
Total investments in startups fell 9 percent to $6.67 billion from $7.34 billion a year ago. There were 913 deals completed in the second quarter, down 6 percent from last year’s 970.
The average first-time deal in the second quarter was $3.7 million, up from $3.2 million in the prior quarter.
The top deals, worth $150 million each, went to design marketplace Fab.com and biotech firm Precision for Medicine Inc.
First-time financing (companies receiving venture capital for the first time) dollars increased 24 percent to $1.1 billion going into 302 companies, a 10 percent increase in the number of deals from the prior quarter.
First-time financings accounted for 17 percent of all dollars and 33 percent of all deals in the second quarter, compared to 15 percent of all dollars and 31 percent of all deals in the first quarter of 2013.
Funding for biotechnology companies and consumer products and services startups increased. The biggest category, software, saw a decline in investment as well as the number of deals completed.
Eight of the 17 sectors saw fewer dollars invested in the second quarter, including networking and e(69 percent decrease), computers and reripherals (51 percent decrease), and semiconductors (30 percent decrease).
Dollars invested in the industrial/energy sector increased 64 percent during the quarter, which was primarily due to a single large deal, the third largest in Q2.
The MoneyTree study released Friday was conducted by PriceWaterHouseCoopers and the National Venture Capital Association, based on data from Thomson Reuters.