Venture capital in Bay Area slows to a trickle
Just 133 Bay Area startups received venture funding in the third quarter, the smallest number since late 1995, nearly seven years ago, according to a new report from VentureOne and Ernst & Young.
The amount of capital invested locally also hit a multiyear low -- $1.47 billion, down from $1.74 billion in the second quarter and $2.17 billion in the comparable period last year. It was the puniest showing in more than four years.
...John Gabbert, vice president of worldwide research at VentureOne, said the crash of the technology bubble is hitting the Bay Area harder than elsewhere because Silicon Valley was the center of venture activity in the late 1990s.
Many VCs remain focused on helping existing portfolio companies rather than making new investments, he said.
"There was optimism that there would be a leveling off through this year and some growth in the latter half," but that is not materializing, Gabbert said.