[asalazar]

Here are three potential reasons.

1. It could just be a random drop in the numbers. The VC world is VERY small and there are VERY few players. Equally, VERY few deals get done every year. Moreover, megadeals can really skew the numbers. So even seemingly small randomness can have big effects on volatility. Heck, look at the chart!

2. There's a well documented drop in the number of venture firms out there and in turn with available capital. Less supply...

3. Many venture firms have been burned by gaming and consumer oriented investments and moving trying to move back to their IT roots. However, the majority of angel and seed investing only recently started focusing IT so the there could be a pipeline issue.