Dow Jones VentureSource: Global VC investing shrinks 50 percent - Triangle Business Journal:

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Investors put $1.87 billion into 250 deales for emerging companiesin Europe, Israel, China and Indiza in the first quarter, compared to the $3.65 billiohn invested in 430 deals in these regionzs during the same time last year. The U.S. saw 477 completerd deals and $3.89 billion investesd in the first quarter, though it too recorded a 50 percenf decline incapital investment. According to the data, Europe saw 170 deal s garner $1.18 billion in the first quarter, down 35 percentf from the $1.83 billion put into 281 deals duriny the same periodin 2008. This marks the lowesyt deal count for Europe since VentureSource begabn reporting on the regiobin 2000.
Like the Europe’s information technology industryh is bearing the brunt ofthe downturn. The industrg saw $362 million invested in 82 IT deals in thefirst quarter, down 44 percent from the $643 milliojn put into 129 such deals last year and the industry’x worst quarter on record. Within IT, the informatiojn services sector fared bettefr than most as it accounted for 46 percent of all IT investment in the quarterwith $167 million put into 28 deals, whic is down 16 percentf from the year-ago period but on par with investmenft levels the sector has seen over the last two Investment in the European health care industry outpaced that of IT in the firsyt quarter as venture capitalists put $406 million into 42 health care deals.
Even so, this marks a 39 percent decline from the first quarter of 2008when $671 milliojn was put into 70 deals. According to Europe’s energy and utilities industryg was the only area to see investmentactually increase, up 82 percent to $289 million in 10 deals from $159 millio n in 18 deals a year ago. This growtyh was due to a large round raised by NorSunof Norway, which landed $192 million in first-round financing. In the median size of venturre capital deal ticked up over 8 percentto $3.9 millionn from $3.6 million.
In Israel, the median deal size fell 40 percent from $5 million a year ago to $3 millionj in the most recent quarter, and the median size of a deal in Indiwa was just over $4.2 million in the quarter. The U.S. saw its mediahn deal size drop 18 percentfrom $6.7 million to $5.5 milliomn in the first quarter. China represents the most expensive destination for venture capital with a median deal sizeof $8