VC Activity On the Rise — But Not For Social Media Startups

According to a recent report from CB Insights, VC activity is the highest it's been since the early days of the dotcom boom, with health care, mobile and green tech leading the way.

Just over a month ago, I wrote about the end of the VC love affair with social media startups. There were, of course, other industries on which VC activity was picking up. Indeed, while VC activity in the social media world is at the lowest it’s been in years, a recent report from CB Insights suggests that VCs have moved on.

In fact, the report indicates that VCs are investing at the highest rate since the early days of the dotcom boom. In Q3 2013, there were nearly 1000 venture deals and an increase in venture financing, to the tune of $7.2 billion, according to the report. The report also pointed to a trend of increased venture-backed IPOs,  in which health care seems to be leading the way, with about a dozen per quarter, the report said.

While the mobile sector had it’s best quarter in history, with several large deals, the report also indicated that mobile gaming only took two percent of the VC pie in Q3 2013.

VCs might not be investing in social media startups but the focus still seems to be on the Silicon Valley, which accounted for 8 out of 10 deals. The green tech industry is one to watch, with more than $300 million in investments across 33 deals, according to the report.