Venture capital investing is cooling off in Greater Washington amid growing uncertainty about the direction of the economy.
In both number of deals and dollars invested, venture capital activity in the region declined sharply between the second and third quarters, according to a report released Thursday, with total dollar volume falling below $1 billion for the first time since the fourth quarter of 2020.
In all, there were 72 investments in D.C.-area firms in the quarter that ended Sept. 30 totaling $699.3 million, compared to 85 investments worth $1.21 billion in the second quarter, according to the latest PitchBook-NVCA Venture Monitor report, published each quarter by data firm PitchBook and the National Venture Capital Association with Insperity and J.P. Morgan. In the third quarter of 2021, there were 93 deals struck in D.C. and its surrounding suburbs, totaling $1.31 billion.
It’s a trend playing out across the country as the combination of high inflation, rising interest…
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