VC investment stalls in 3rd quarter

Investments in U.S. venture-backed companies stalled in the third quarter, putting 2009 on track to be the worst investment year since 2003, according to data released from industry tracker Dow Jones VentureSource (San Francisco).

Venture capitalists invested $5.1 billion in 616 deals in the third quarter of 2009, down 6% from the $5.4 billion put into 595 deals during the second quarter of this year. That's down 38% from the $8.2 billion invested in 663 deals during the 3Q08.

"The slow recovery we've seen for venture capital has faltered," said Jessica Canning, director of global research for Dow Jones VentureSource. "As liquidity and fundraising lag after the economic meltdown in 2008, investors have no choice but to keep a tight rein on investments until the industry is on more solid ground."

Investment in the Silicon Valley/Bay Area fell 33% compared to the third quarter of 2008 with $2.2 billion with 183 deals completed. That represents about 45% of all VC investing in the country.

NexMed schedules Nasdaq delisting hearing

NexMed (East Windsor, New Jersey), a maker of products based on the NexACT technology, said that it has heard back from the Nasdaq Listing Qualifications Department regarding its request for a hearing concerning its possible delisting from the Nasdaq Capital Market, and that a hearing has been scheduled for Nov. 12, 2009. NexMed's stock will continue to trade on the Nasdaq Capital Market pending a final decision by Nasdaq, which typically occurs within four to five weeks after the completion of the formal hearing.