First round of financing by venture capital

This paper examines the first round financing of venture capital investment activity in the United States from the first quarter of 1995 to the second quarter of 2010, taking into consideration both location and industry sector as important factors in determining the first round of venture capital financing.  The paper studies the effects of macroeconomic variables on the amount of first round venture capital financing.  By examining long term trends of the first round investment and its association with macroeconomic variables, the effects of the current financial crisis on first stage venture capital investment may be better understood.