Venture-cap investments fall 7%

SAN FRANCISCO » Venture capitalists poured less money into U.S. startups in the third quarter and split this among more companies, signaling that investors are trying to be more economical with their funds.

Startup investments declined 7 percent to $4.8 billion in the July-September period, compared with $5.2 billion invested during the same three-month period in 2009. A total of 780 startups received funding during the quarter — 9 percent more than the 716 companies that took slices of the investment pie last year.

The study, conducted by PriceWaterhouseCoopers and the National Venture Capital Association based on data from Thomson Reuters, said that much of the decline stemmed from a drop in large investments in clean technology. Funding in clean-tech startups, which include alternative energy, recycling, conservation and power supply companies, has been mercurial lately. It fell every quarter last year compared with the previous year, but has been climbing this year — until the third quarter.

Despite the third-quarter funding drop, though, funding for the full year still looks to be higher than it was in 2009. So far this year, venture capitalists have invested $16.7 billion in 2,497 startups; in all of 2009, $18.3 billion was funneled into 2,916 startups. 

TOTAL RECALL

» About 455,000 Ryobi model HP 1802M cordless power drills, manufactured in China and imported by Ryobi Technologies Inc. of Anderson, S.C., because the switch can overheat and pose a fire and burn risk. The company as received 47 reports of overheated drills, including 12 reports of property damage and two reports of minor burns. The drills were sold by Home Depot from January 2001 to July 2003. Details: by phone at 800-597-9624; online at www.cpsc.gov.

» About 185 Iron Lover’s benches, manufactured in China and imported by Ross Stores Inc. of Pleasanton, Calif., because they could tip over if only one person is seated. The benches were sold at Ross Stores nationwide between July and September. Details: by phone at 877-455-7677; online at www.rossstores.com or www.cpsc.gov.