WORLD> America
Silicon Valley takes lead in venture capital investment
(Xinhua)
Updated: 2008-08-11 09:57

LOS ANGELES -- Silicon Valley and the broader Bay Area, flexing its leadership status in technology during an economic downturn, accounted for a remarkable 40 percent of venture capital investment in the second quarter this year, it was reported on Sunday.

In all, San Francisco Bay Area companies received nearly $2.96 billion in venture funds during the quarter, out of $7. 38 billion nationwide, according to the quarterly MoneyTree Report published by the San Jose Mercury News.

The proportion was substantially above the region's typical quarterly share, which has hovered near 35 percent in recent quarters and averaged 32.4 percent since 1995, according to the report.

Overall, the report reflects robust investment activity in Silicon Valley despite a Wall Street downturn.

This came amid worries about companies' ability to cash in on investments through "exits" such as initial public offerings or acquisitions, but there has been no let-up in their ability to raise funds from institutional investors and find private companies in which to invest, the report said.

The valley's 40 percent share, featuring strong investments in clean tech and software, was part of a pronounced westward shift in venture capital.

California as a whole accounted for 52.9 percent of funding dollars in the quarter, nearly 10 percentage points higher than the state's average since 1995, said the report.

Clean-tech deals powered much of the Golden State's growth. The quarter's two largest deals were expansion rounds to solar energy companies, with $132 million for Hayward-based OptiSolar and $115 million to Oakland-based BrightSource Energy, according to the report.