Research: More Signs Of Tech VC Recovery, Less So For Internet

After Tuesday’s report that private equity investors will fall back in love with media deals in 2010, more data is showing a mixed recovery of sorts…

Investment advisory firm Ascendant says July-to-September investments in UK and Irish technology firms (£213 million) nearly matched the amount invested across the whole of January to September last year (£220 million). It’s forecasting £700 million will have been invested by year’s end, which it says is comparable to pre-recession 2006.

“We have strong anecdotal evidence that investors are being swamped with new deals and so the outlook for Q4 is promising,” says Ascendant MD Stuart McKnight.

But there’s a little more to it – while amounts invested are up, the number of investments is still down on 2008 levels…

… So fewer companies are taking more of the money. Despite 10 new funds being opened totalling £850 million, the cash is being given “at a very cautious pace”, McKnight adds.

And, within technology, the internet and wireless services sector specifically is faring less well, amounts dropping to £31 million in Q3 from £56 million in Q2. The biggest deals – Ocado (£12 million) and Livebookings (£10 million). Tech is being buoyed by cleantech investments.