CB Insights: U.S. venture capital market is growing

812 American companies received venture funding in the second quarter of this year, according to cybersecurity.ru portal referring to CB Insights Company. This is a 3% increase in comparison with the 2nd quarter of 2011. CB Insights says that venture capitalists are mostly ready and willing to invest in developing companies.

According to CB Insights $8.1 B was invested in the second quarter and distributed among 812 companies. $8.1B is quarter’s highest index since the era of the dot-com boom, when money flowed like water in the IT-sector companies. In addition, the report says that $8.1B is 37% more than in the first quarter when venture capitalists invested about $5.9B cash in growing business.

The authors say that some of this high rate can be explained by only one transaction: Facebook bought Instagram service for $1B. This deal could play a significant role in the growth of investors’ costs and raising the bar of companies that attracted money.

The report also says that the mobile sector had 102 deals, which is also a record figure for the whole period of monitoring. Companies in mobile photo and video sector actively raised funds: investment volume increased to 30% in comparison with the data for the previous year. On the other hand, investors have cooled off such areas as social services, education IT-technologies and e-commerce, CB Insights says. Web companies got 371 deals in total of $3.1B.

The report also says that the seed funding, when investors finance startups at early stages of development, were also popular: seed funding makes a third of all online transactions. In the mobile segment, the figure is 34%. For all sectors in total - 20%.