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Tuesday, September 09, 2008

The funding gap gets bigger


$40 billion was invested in U.S.-based startups across all sectors during the past 12 months, compared to $36.2 billion during the year leading up to Aug. 31, 2007. The rounds got fatter, too, as there were 3,084 deals in the past year versus 3,219 in the previous period.

More money, less deals, the funding gap in the US is getting bigger. This is not going to help entrepreneurs trying to start their businesses, I see this as a flag that things are not improving when it comes to financing startups.
Meanwhile the same post mentions that the number of European deals only decrease slightly while the total amount spent is 5% less. So I assume from what I read (there is no number there on this) that the funding gap is decreasing in Europe, something good.
I wish we could see that trend in the US, it would certainly help entrepreneurship. With the economy as it is, it is time for the spreadsheet guys to give the entrepreneurs some room back...