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Venture Industry

Venture capital funding shrank in the third quarter of 2010 to $4.8 billion, falling by 31 percent compared with the previous quarter, due largely to a decline in clean-technology deals, according to the the National Venture Capital Association. Early-stage deals accounted for 35 percent of all deals, with $1.3 billion going into 271 investments, while seed-stage funding represented 11 percent of all deals with $307 million going into 87 companies. The numbers remained largely steady from the second quarter, when 47 percent of all deals were early and seed stage investments.

First time financing remained relatively stable at $1.23 billion, the same as the previous quarter. But first time deals have been growing consistently since the the first quarter of 2009, when they accounted for $670 million

Internet & Media

Facebook is replacing email and other forms of communication for 18 to 24 year olds.

40% of gaming revenues in H1 2010 are generated by used game sales, downloaded digital content, social media & mobile gaming and gaming subscriptions according to NPD.

eBook sales have doubled sales in 2010 reaching $263M up from $90M for the first 8 months of the year increasing market share from 3.3% to 9.0% according to the Association of American Publishers. Meanwhile, hardcover sales fell 25% likely a result of the spend shift from the most lucrative book customers to digital formats.

Eventbrite released data indicating Facebook refers more business and traffic than Google. Additionally, each Facebook share is worth $2.52, more than 5 times Twitter’s $0.43 and 2 times LinkedIn’s $0.90.

Google announced annualized revenue for display is now at $2.5B and mobile search is at $1B. US gross revenues grew 26% up from 22, 11 4 and 2 percent in the previous 4 quarters.

Google announces 10M are using Apps for Education, up from 8M two months ago, demonstrating the gusto with which they are pursuing the academic market. There are 76M students in the US according to the Census.  

The percentage of Internet users who video chat on any given day has risen to 4 percent, from 2 percent a year earlier and 20% of Americans have tried the service, according to a recent Pew study. 

Bing has incorporated Facebook data into their search results in a sign of increasing cooperation between the two companies.

Mobile

The average teenager sends 3400 SMS per month, about one every ten minutes according to research conducted by Nielsen. Average SMS volumes are up 8% annually.

The daily audience for apps that run on Apple’s iOS operating system (for the iPhone, iPod Touch, and iPad) has now surpassed 19 million users who spend an average of 22 minutes per day using these apps, according to one measure. That means the audience for the iOS devices is now bigger than NBC’s Sunday Night Football and is just shy of the audience for ABC’s Dancing with the Stars, according to Flurry.

Rovio released the Android version of their hit game, Angry Birds, on GetJar one day before the Android market. As a result of the excitement for the game and promotion on GetJar, Angry Birds reached 1M downloads in its first day.

Amazon and Verizon announced a deal that will preload all Verizon Android devices with Kindle applications.

Verizon announced they will sell a Wifi enabled iPad with portable 3G Wifi hotspot Mifi beginning on Oct. 28. Given the lack of CDMA chipset into the hardware, this announcement has unclear implications for a Verizon iPhone.

M&A and Investments

DeNA acquires iPhone game publisher ngmoco for $406M.

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