THE COMING CRASH? VC Deals Are Now at Highest Levels Since Height of 2000 Dot-Com Bubble


According to TechCrunch, VCs invested $6.9 billion across 841 deals in Q1 2013 — the highest level since the dot-com days of 1997-2000. Series C, D and E rounds all saw increases in distribution of funding dollars, while investments in Series A and B rounds declined (the dreaded Series A crunch).

The data –which comes from CB Insights Q1 2013 report on VC deals — showed that funding was up 17% overall, with seed VC activity increasing 31% since Q1 2012. The record 379 internet deals is the highest since Q1 2000.

For those who remember, the dot-com bubble stock market began to slip right around March 2000, around the end of Q1. But hey, I’m not cynical! Let’s keep looking at the data…

Funding for security companies is seeing an unexpected boom, comprising 30% of overall deals last quarter. I guess the avatar security robots of RoboteX aren’t so special after all. Also, the top three states for deal fundings are California (surprise!), New York and Utah (Mormons ♥ Entrepreneurs).

Alright, so again, I’m not trynna be a Negative Nancy…I’m cool, I’m one of you guys! And maybe it’s just the balmy Indian air getting to my brain, but ummm….there were at least three multi-million dollar deals for food delivery services in the past month alone. And at least two deals for Pinterest knock-offs. So does anyone else think some of these companies are going to, like, maybe not last? Maybe funding’s going to fall off, maybe now’s not the time to join the Silicon Valley party, when it’s the most crowded?

Or is failure the whole point? Aw who am I kidding, I’ll never understand entrepreneurship…you guys go back to your multi-million dollar security and wedding apps, ignore me!