Investment in software companies surpassed the $3 billion dollar mark in the third quarter.

Venture capitalists invested $12.5 billion in 1,046 global funding deals in the third quarter of 2012, based on data provided by WhoGotFunded.com. The website, which was developed by Digimind, tracks global VC deals and funding events in real-time and has amassed more than 6,000 subscribers since it launched in June.

The Software industry received the highest level of funding for all industries with $3.3 billion invested during the third quarter of 2012, accounting for just over a quarter (26%) of all investment activity. The Industrial and Energy Sectors received the second highest investment amount in Q3 with $1.9 billion going into 122 deals, with an average deal amount of $16 million. Meanwhile, companies in the healthcare sector attracted $398 million which went into 54 deals, accounting for 3 percent of all VC dollars invested for the quarter. Companies in the Consumer Products and Services sector raised $1.2 billion which went into 71 deals, a clear sign of investor confidence in the sector despite a gloomy global economy.

Monthly Investment Breakdown

Funds raised in July amounted to $3.8 billion, which went into 282 deals. August saw a slightly greater number of investment deals (298) but with a smaller combined total of $3.3 billion. Following the summer months of July and August, investors ramped up their funding activity in September to close 466 deals amounting to $5.5 billion for the entire month.

Investment Size

The majority of funding deals in Q3 (almost 70%) were investments of less than $10 million. A quarter of all investment deals ranged from $10-$50 million. While just 4% of VC deals ranged from $50-$100 million.

Top Investment Locations

Most funding activity in the third quarter emanated from the US, with 70% of all VC funds being funnelled into US companies. 740 US companies received a combined total of $8.8 billion. Deals involving UK companies amounted to $767 million making it the second most active global investment hotspot. Canada comes in at third place in terms of number and value of funding transactions during Q3. Canadian companies raised $498 million for the quarter, which went into 53 deals. Meanwhile companies in China raised a combined total of $338 million.

Paul Vivant, CEO of Digimind and founder of WhoGotFunded said: “The VC funding landscape is in remarkably healthy shape despite the uncertainties in the wider economy. It is particularly encouraging to see that some of the major deals involve disruptive technologies, in divergent areas such as mobile payments, green cars and renewable energy, which have the potential to impact hugely on our everyday lives.”

For more information please contact:

orlaith@whogotfunded.com

About WhoGotFunded

WhoGotFunded.com a comprehensive website tracking all venture capital developments in every industry and region in the world. It is updated every minute in real-time, with all the latest information about high potential start-ups, venture capital firms and VC transactions taking place around the world.

About Digimind

Digimind develops competitive intelligence software that helps organizations to automate the process of collecting, analyzing and publishing critical information. Digimind is essential to any organization that seeks to enhance its market position and corporate reputation, through ongoing monitoring of market trends and indicators, customer requirements and the competitive landscape. Digimind has an international presence to serve the needs of its global client base with offices in Boston, Paris, Grenoble and Rabat.