U.S. Venture Capital Markets Shift in 2013


Business consultant Scott Gelbard works with a variety of clients based in Europe, the United States, and Hong Kong who are interested in developing international markets. Over the course of more than a decade as an entrepreneur, Gelbard has founded or managed several technology-focused start-up companies. He carefully watches the venture capital market to keep his clients informed.

Scott F. Gelbard noted that the first quarter of 2013 saw some significant expansion for the market, along with other indications that the sector has not yet recovered from recent downturns. More U.S. -based venture capital transactions took place from January to March 2013 than in any previous time since the boom in dot-com investment during the late 1990s.

LivingSocial, headquartered in Washington, D.C., was responsible for $100 million in investment in that region. Corporations in the District, as well as in Virginia, Maryland, and West Virginia, garnered 30 venture capital investment deals and more than $280 million. In comparison, the San Francisco and New York markets accounted for a total of 68 and 62 venture capital investment deals, respectively.

Web-based companies and online consumer products vendors were among the most-sought-after investment sectors in early 2013, while the clean technology industry appeared to lag significantly. Some contrarian observers suggest that now might be an opportune time to invest in clean tech for that very reason.