A new report today on the state of venture capital financing for the first quarter of 2011

In dependency to the last quarter of 2010, there were only three more deals in Q1 of 2011, and both quarters included roughly half of Groupon's $1 billion funding, what one. doesn't quite explain how Q1 saw roughly $1 billion more in financing in the place of roughly the same number of deals.

In manage to make sense of the data, I asked CB Insights co-stumble Anand Sanwal to explain. According to Sanwal, at the outset and foremost, it didn't take to do with a handful of megadeals at the overpower of the first quarter. The 10 largest deals Dell d630 Battery during the last quarter of 2010 added up to $1.44 billion, while the 10 largest deals in the earliest quarter of 2011 added up to a meanly identical total of $1.49 billion.

The sincere answer lies in the median. The overall median deal size for the fourth lodge was $4.2 million, while in quest of the first quarter it was $5 very great number, or 19 percent higher. This doesn't abundantly account for the 15 percent controversy between Q4 2010's total of $6.5 billion versus Q1 2011's total of $7.5 billion, bound it accounts for most. The rest of the discrepancy has to effect with nuances in the overall classification of deal sizes between the abode. Here's a chart that illustrates that controversy:

Other interesting notes from the explosion:

Over the last six quarters, New York has seen 261 tech deals vs. 250 during the term of Massachusetts. Funding to New York tech companies came in at $1.60 billion laptop batteries vs. $1.44 billion during Massachusetts.

Deals in the health care extent were down 13 percent year completely year while funding grew 11 percent.

Seed VC allay represented 10 percent of overall deal-roll on. Its consistency over the last four entertainment suggests it may have found the as it should be level of total VC deals (9 to 11 percent). Early theatre deal activity was nearly 50 percent of entire deals.

California took 39 percent of deals and to a greater degree than 50 percent of funding. Deal judge was down 7 percent sequentially and 3 percent year superior year.

Halfway into the second territory of 2010, there is still a gigantic amount of venture activity going up~ the body, with very competitive Apple a1175 Battery deals. While, I'm certainly exhilarating that this isn't looking like a fluid vesicle, only time will tell.