As we saw in the venture activity surveys that came in last week, the capital deployed by VC firms in startups developing innovative technologies has been returning to pre-recession levels in key technology hubs throughout the United States.
In San Diego, however, venture funding has taken a decided turn for the life sciences. Of the 29 startups that got a total of $198.2 million in San Diego during the second quarter, all but five of the deals were life sciences deals, according to the MoneyTree Report. At least $193.1 million, or more than 97 percent, went into San Diego life sciences deals during the recent quarter. But it’s not that the life sciences startups have been claiming more than their share of VC dollars—it’s that they account for a proportionally larger slice of an ever-shrinking pie. Even a moving average that smooths quarter-to-quarter fluctuations reveals that overall venture funding levels in San Diego have plunged by roughly half over the past three years.
To read the full, original article click on this link: A Bay Area VC Sees Some Missing Ingredients in San Diego’s Innovation Community | Xconomy
Author:Bruce V. Bigelow
