Venture capitalists greeted the new year with fewer overall deals and dollars invested during the first quarter, but in the rapid-fire world of investing in web startups this first-quarter data is about as relevant as a day-old newspaper. There are two things to know as an entrepreneur looking at the latest MoneyTree Report from PricewaterhouseCoopers LLP and the National Venture Capital Association. The idea that the VC business is contracting as the NVCA and news reports imply is laughable in a post-Instagram world and it’s still a hard time to raise a Series B unless you’re a firm like Pinterest.

During the first quarter of the year VCs invested $5.8 billion in 758 deals, a 19 percent decrease in dollars from the previous quarter and a 15 percent decrease in deals. This isn’t unexpected as the industry has also seen its ability to raise funding from its investors drop

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