Silicon Valley Q3 Venture Capital Still Rolling

Start-ups fatten up: Venture capital spigot flows freely in Q3

MERCURY NEWS SPECIAL REPORT: VENTURE CAPITAL

With investments in the emerging "clean tech" industry continuing to soar, Silicon Valley companies received more than $2.48 billion in venture capital in the third quarter of 2007 - a sign that the valley's entrepreneurial culture is thriving despite broader economic worries.

The quarterly MoneyTree Report found that the valley's total venture investments, while dipping slightly from the previous quarter, represented robust 9 percent year-over-year growth. As usual, Silicon Valley and the broader Bay Area outpaced other tech hubs by a wide margin, reaping 35 percent of the $7.1 billion in venture investments in the United States........

For the venture capital industry, the upbeat quarter came at a time the U.S. economy quivered from the rippling effects of the subprime mortgage meltdown. The ensuing credit crunch as well as rising fuel prices have economists warning of a marked slowdown and a potential recession.

But the valley's tech-driven economy seems cushioned from the domestic worries as it relies increasingly on expanding global markets. VCs, in particular, exhibit a buoyant mood, according to a quarterly survey by University of San Francisco Professor Mark Cannice that is compiled in the university's Silicon Valley VC Confidence Index........

By Scott Duke HarrisMercury News

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