Venture Investment Likely to Fall Short in 2008

Third-quarter data are expected to show a roughly 27% drop in VC funds for startups. Total annual investment is on track to fall for the first time since 2003

In the last few days, venture firms have begun to realize they are not immune from the credit crunch. At the end of next week, official data will arrive that will likely bear that out. Judging by early numbers indicating $5.71 billion went into startups from July through September, the third-quarter venture capital data gathered by Thomson Reuters for PricewaterhouseCoopers and the National Venture Capital Assn. are likely to show a drop of about 27% from the same period in 2007.

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