Q2 2010 Report: 366 Internet, Software Companies Raised $2.1 Billion In Total

Venture capital database VentureDeal this morning released complimentary VC Funding Quarterly reports, covering the second quarter of 2010. Let’s take a look at the report TechCrunch readers are likely most interested in: the world of the Web, digital media, software and ecommerce.

During Q2 2010, VentureDeal reports (PDF) that 366 companies raised a total of $2.1 billion in venture capital funding for those sectors, up 17% in total funding amount compared to the first quarter of this year and an increase of 30% in the number of companies funded.

All four sectors showed gains in funding amounts and number of companies funded.

Also see: Venture Capital Investing Up 34 Percent To $6.5 Billion In Q2 (from a MoneyTree Report from PricewaterhouseCoopers and the National Venture Capital Association).

Internet

Zooming in on the Internet sector, VentureDeal reports that the sector received $939 million in VC funding during the quarter, allocated among 170 companies – an increase of 33% in the
number of companies funded.

The big funding rounds were for Facebook and Groupon, which raised $120 million and $135 million, respectively.

Digital Media

Digital media companies (which VentureDeal defines as either video/casual game developers or advertising networks) showed increases in both total amounts funded and the number of companies funded, bucking the decreasing trend from the previous quarter. Total funding increased by 150% to $418 million, with 41 companies being funded, an increase of 17% versus the previous quarter.

We should note a single company accounted for over one third of that funding amount, though, notably social gaming giant Zynga. The company raised approximately $150 million from Softbank last June. We say they also raised over $100 million from Google, but the company still has to confirm that one.

Another big round went to New York-based Tremor Media, which scored $40 million in its fourth round of funding from a syndicate of VC firms and SAP Ventures.

eCommerce

The eCommerce sector continued its previous quarterly upward trend, with 11 companies receiving a total of $78 million in funding, an increase of 22% in financing amounts compared to Q1 2010.

Payment transfer company Xoom raised $33.25 million, while Kudzu Interactive secured $7 million in second-round funding.

Software

During the second quarter, software company fundings represented the second largest sector, raising $689 million between 144 companies, an increase of 2% in total funding amount
and an increase of 32% in the number of companies funded compared to Q1 2010.

The largest funding of the quarter was $90 million in series D financing for Palantir Technologies, which provides an analytical platform that helps organizations analyze “subtle connections that exist within vast networks of heterogenous information.”

San Mateo, California-based Blazent raised $10 million in new investment from a large syndicate of Silicon Valley venture capital firms.

Source: Techcrunch