According to the economists who decide such things, 2008 was the first year of the current recession.
But news numbers from PricewaterhouseCoopers and National Venture Capital Association suggest it wasn’t such a bad 12 months for Silicon Valley startups.
Nationwide, venture capital funding shrank 8% in 2008, to $28.3 billion from $30.8 billion in 2007.
But startups in Silicon Valley saw $10.98 billion in venture funding in 2008, down less than 1% from $11 billion in 2007.
Better news yet, seed funding actually increased in 2008, according to the Mercury News:
Within the numbers, there was good news. When the financial crisis first struck, there was broad concern that “seed stage” and “early stage” startups would go begging while VCs concentrated their dollars and time on later stage investment. But the bigger picture for 2008 showed seed-stage investments up 19 per cent over 2007, with $1.5 billion going into 440 companies, compared with $1.3 billion going into 450 companies the year before. It was the most money invested in seed-stage since the dot-com bubble year of 2000.
No expects to 2009 to go so well — plenty more bad news is coming — but it’s good to know a whole class of startups might have gotten enough funding while the getting was good to surive get a chance at surviving the nuclear winter ahead.
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