capital

In Q3 2014, venture capital (VC) investments in the U.S. dropped by 30 percent from Q2 totals, according a new report from CB Insights. Q3 VC deal levels also dropped by 10 percent from Q2 totals. The severe drop, however, can be attributed to Q2 being the most successful VC quarter since Q1 2001. The good news is that the first three quarters of 2014 saw the U.S. VC investment total reach $33.75 billion – an increase of 59 percent compared to the first nine months of last year.

Within the past month, two of America’s major research universities – the University of California system (first in total R&D expenditures, according to the NSF) and the University of Minnesota-Twin Cities (eleventh in total R&D expenditures) announced new funds to increase the rate at which their students, faculties, and researchers are able to commercialize their ideas into new businesses.

“People ages 20 to 34 created 22.7 percent of all new companies in last year [2013], down from 34.8 percent in 1996,” according to an article from Walter Hamilton of the LA Times. In the article, Hamilton contends that the “image of the U.S.

Over two years, President Obama signed the JOBS Act, a bill authorizing a variety of significant changes to securities laws. Among those changes, the Securities and Exchange Commission (SEC) was mandated with implementing rules for equity crowdfunding within 270 days – approximately January 2013. However, the rules still remain in draft form.

Global investors are more confident investing in the U.S. than anywhere else in the world, according to a recent survey from Deloitte and the National Venture Capital Association (NVCA).  Confidence in the U.S. macroeconomy and U.S. investments has now grown for the third straight year and continues to lead among the 12 countries included in the study. Respondents, however, indicated that they had a negative opinion of the country’s investment policy environment. U.S.

The Angel Resource Institute (ARI), Silicon Valley Bank (SVB) and CB Insights released the Halo Report for the first quarter (Q1) of 2014. The national survey of angel group investment activity reported encouraging results as both investments and valuations climbed in Q1— median round sizes increased to $980K per deal up from 2013 averages, and pre-money valuations rose to $2.7 million from $2.5 million in Q4 of 2013. The climb was driven mostly by investments in Internet-related companies that jumped significantly.

On August 1, the Massachusetts lawmakers enacted a comprehensive economic development bill (H.4377). The bill currently awaits Gov. Deval Patrick’s approval. Per state law, Gov. Patrick has until August 14 to sign the bill, 10 days after he received it. The approved bill that received unanimous approval by the Massachusetts state Senate was passed as a comprise package between two bills proposed in the Senate and House.

Several states announced new or expansions to existing capital programs during the 2014 legislative session. The proposals targeted increasing the availability of venture/risk capital for job creation and establishing or expanding angel tax credits to spur investment in targeted sectors. Nebraska lawmakers allocated $50,000 to support and increase venture capital in the state. In Minnesota, Gov. Mark Dayton extended the state’s Angel Tax credit for two more years and added additional funds.

To continue the growing trend of intrastate crowdfunding, six states passed exemptions including Alabama, Indiana, Maine, Maryland, Tennessee, and Washington.

Tasked with taking the Small Business Administration (SBA) to the next level, Maria Contreras Sweet, the new head of the agency, envisions a modern SBA with a greater focus on inclusion. Contreras Sweet outlined steps to achieve her vision earlier this week in a speech at the Center for American Progress.

Last year, 108 unique institutional funders made a total of 260 investments in North Carolina companies, according to a report from the Council for Entrepreneurial Development. The 2013 Innovators Report details the $461 million in equity investments, grants and awards received by firms, including support from venture investors, angel networks, foundations, federal agencies, competitions, crowdfunding and other sources. Life sciences firms generated the most activity with $275 million in 134 deals, driven by the biopharmaceutical industry.