Q4 Venture Financings Down, But an Engine for eBusiness is Actually Up

With the economy still in a recession it’s no surprise that venture capital investing in the U.S. fell in the fourth quarter of 2008 to the lowest level in four years, according to VentureSource.  Financings for the quarter fell to 554, down from 620 the prior period and 718 a year ago.  The total number of 2,550 deals was the annual total since 2005.

But eBusinesses can take heart.  Media content and information financings actually increased to 50 in Q4, up from 33 a year earlier.  That’s because in economic downturns investment follows capital-efficient business models like those that deliver online advertising and products to consumers.  Content is central to attracting the eyeballs that information sites, retailers and manufacturers then efficiently monetize.