Business briefs for Jan. 20

WASHINGTON — Federal Reserve officials in 2007 badly underestimated the scope of the approaching financial crisis and how it would tip the U.S. economy into the deepest economic downturn since the Great Depression, transcripts of the Fed's policy meetings show.

As the year went on, Fed officials shifted their focus away from the risk of inflation as they slowly began to recognize the severity of the problem.

Beginning in September 2007, the Fed cut interest rates and took steps to try to ease credit and shore up confidence in the banking system.

Startup funding dips

NEW YORK — A new study shows that funding for business startups declined in 2012, for the first time in three years, as venture capitalists spent less money on fewer deals.

Capital-intense sectors like clean technology and life sciences were among the hardest hit, according to a MoneyTree study released Friday.

It was conducted by PricewaterhouseCoopers and the National Venture Capital Association, based on data from Thomson Reuters.

In all of 2012 startup investments fell 10 percent to $26.52 billion from $29.46 billion. There were 3,698 deals completed, down 6 percent from 3,937 in 2011.