Philly Venture Capital Investments Hit an 18-Year Low This Week

Though an increase in number of deals—plus a focus in the medical sector—might help avert investing disaster.


Philly’s venture capital investment is hurting, having this week hit an 18-year low according to statistics released this morning. Philadelphia Business Journal breaks down the carnage:

In the Philadelphia market, there were 29 VC deals in the quarter that ended Sept. 30, the lowest number since 2009.

Dollars invested in the three-month period plummeted to $48.9 million, hitting the lowest number since the figure was $26.8 million in 1995, the first year PwC started charting VC investment.

Nationally, there were 1,005 third-quarter VC deals totalling $7.77 billion, up from 937 deals totalling $6.63 billion a year earlier. Yet Pennsylvania, New Jersey and Delaware all saw declines in the dollar volume invested; only Pennsylvania saw an increase in the number of deals.

The good news, though, is that investment levels are cyclical, and reading too much into this latest report won’t do much for us besides increase anxiety levels. Plus, our medical firms–on which we’ve built much of our lives in this city—pulled in $19 million in investments last quarter:

Brown said he saw it as a good sign that investment in medical-device firms totaled $19 million in the last quarter, indicating that that sector is emerging. He also cited software for attracting investment. Through three quarters, there were 95 deals and a total of $336.7 million in investment, compared to 81 deals totaling $358.6 million in investment through three quarters last year.

So, startup mavens and wannabes alike, step away from the open windows: We’re not quite at panic levels just yet. [PBJ]