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five Series B rounds. And that’s without counting the four deals where the stage of the round could not be determined. It’s safe to say that the market for early-stage startups is alive and well.
—Just as in June and July, the most active sectors in August by deal number were healthcare and Internet. Each month their positions have flip-flopped, though. August saw healthcare take the lead again, with seven deals, edging out the Internet sector by one deal. On a dollar basis, though, healthcare dominated, as you might expect given the high costs of operating biotech and other life sciences startups. VCs pumped in $89 million to healthcare companies, compared to just $23.65 million to Internet startups.
—While venture investments spanned just about every sector of the high-tech economy last month, energy was shut out for the second time in three months. The exception, July, saw just one deal in this sector. You have to wonder if the bloom is off the rose for energy companies.
—No single venture firm took the lead when it came to the numbers of deals done, but Atlas Venture, General Catalyst Partners, Charles River Ventures, Highland Capital Partners, and Flagship Ventures each took part in two deals during the month.
August 2009 MA Venture Investments