April 20 (Bloomberg) -- U.S. venture capital investments fell 61 percent to $3 billion in the first quarter, the lowest level in 12 years, as the financial crisis chased away funding for technology and clean-energy deals.
Funding of clean technology -- coming off a surge of investments in 2007 and 2008 -- plunged 87 percent, according to the National Venture Capital Association. Total venture investments dropped 47 percent from the previous three months.
The freeze in initial public offerings kept startups from getting funding because investors weren’t sure how they would earn a return, said John Taylor, vice president of research at the Arlington, Virginia-based association. Venture capitalists are devoting more attention to companies they already own.
“We are in a very difficult, stressed time,” Taylor said on a conference call last week. “Everyone is trying to figure out what is going on.”
By Joseph Galante and Tim Mullaney
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