Venture investing for new ventures seeking their first round of financing declined by 85% to $1.5 billion in 3rd Quarter compared to the height of the of the venture capital boom in 1st quarter 2000, when new companies received $10 billion in venture capital.
New firms received just 10% of all venture funds vs. 37% of the total during the same periods. This is significant, because it is the first time that investment in new companies represented less than 30% of the total dollars invested, according to figures by research firm Venture Economics and the National Venture Capital Association.

In a story by Lisa Bransten of the Wall Street Journal, Howard Alt is reported as one of the few to get funding. ?Nobody was in a hurry, ? he said about his 9-month process of getting money. His company Acies Networks, Inc., a Bolder Colorado software company, raised $8.1 million from Mohr Davidow Ventures and Redpoint Ventures, both of Menlo Park, CA.

Existing firms seeking subsequent rounds of equity financing faired a little better. Overall for the third quarter, venture investing fell to $7.7 billion from the record $28.5 billion invested in the year-earlier period.

Investors are simply hesitant, in this climate of slowed technology spending, to fund new companies. Few expect the markets to pick up until next year, depending on economic conditions. However, here are some positive signs.

Despite the economic slowdown and that returns to venture funds are at their lowest in 30 years, investors continue to pour money ($6.2 billion in the 3rd quarter), albeit less (78% drop from 3rd quarter 2000), into venture funds.