Venture funding declines in 3rd quarter

Venture funding declines in 3rd quarter
NEW YORK (AP) - A new study says funding for startups declined 12 percent in the July-September period as venture capitalists spent less money on fewer deals.

A report out Friday says startup investments totaled $6.49 billion in the third quarter. That's down from $7.34 billion a year earlier, a period that preceded a slew of high-profile initial public offerings from Facebook Inc. and others. Excitement about the IPOs helped drum up excitement about other up-and-coming startups among venture capitalists.

There were 890 deals completed during the quarter, down 10 percent from 992 a year earlier. Companies in software, biotech and information technology received the most money, with software far outpacing the others.

The quarterly MoneyTree study was conducted by PricewaterhouseCoopers and the National Venture Capital Association based on data from Thomson Reuters.