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1998 Venture Capital Investments Continue to Increase
PricewaterhouseCoopers recently announced that venture capital investments in the third quarter of 1998 set an all-time high of $3.77 billion, just slightly above the previous record of $3.73 billion set last quarter despite the current stock market turmoil. Compared to the third quarter of 1997, investments increased 29% over the $2.92 billion reported one year ago.
These findings were released in the PricewaterhouseCoopers Money Tree, a quarterly report of venture capital investments throughout the United States. This survey is a result of the merger of the Price Waterhouse National Venture Capital Survey and the Coopers & Lybrand Money Tree Survey.
The following table shows the amount of venture capital dollars invested by region in the third quarter of 1998:
Region
Investment Amount
% of Total
# of Deals
Silicon Valley
$1,248,007,027
33%
207
New England
550,785,000
14.6
114
Southeast
336,155,504
8.9
60
LA/Orange County
289,742,000
7.7
27
Texas
257,513,000
6.8
44
New York Metro
215,591,675
5.7
32
Northwest
152,003,334
4.0
30
Midwest
145,807,000
3.9
45
Colorado
140,499,000
3.7
21
DC/Metroplex
107,694,000
2.9
25
Philadelphia Metro
94,383,000
2.5
22
San Diego
70,191,000
1.9
23
North Central
52,936,000
1.4
21
Southwest
46,654,000
1.2
13
South Central
30,150,000
0.8
13
Sacramento/N. CA
27,847,000
0.7
2
Upstate New York
10,662,000
0.3
6
AK/HI/PR
432,000
0.0
3
Total
$3,777,052,540
100%
708
Silicon Valley: N CA, Bay area and coastline
New England: ME, NH, VT, MA, RI, and CT (excluding Fairfield Cnty)
NY Metro: Metropolitan NY area, N NJ, and Fairfield Cnty, CT
Midwest: IL, MO, IN, KY, OH, MI, and western PA
Southeast: AL, FL, GA, MS, TN, SC and NC
LA/Orange Cnty: Los Angles, Ventura, Orange, & Riverside Counties
Philadelphia Metro: Eastern PA, Southern NJ, and DE
DC/Metro: Washington, D.C., VA, WV, and MD
Northwest: WA, OR, ID, MT, and WY
North Central: MN, IA, WI, ND, SD, and NE
South Central: KS, OK, AR, and LA
Southwest: UT, AZ, NM, and NV
Upstate NY: Northern NY except Metro NY City area
Sacremento/N. CA: Northeastern CA
A total of 708 companies received financing in the third quarter compared to 658 companies a year ago, an eight percent increase. At the same time, average funding per company increased 20% to $5.3 million versus $4.4 million a year ago.
Technology-based companies also set a record in the third quarter. As a group, companies in the classifications of Biotechnology, Communications, Computers & Peripherals, Electronics, Environmental, Medical Instruments, Semiconductors, and Software & Information accounted for $2.9 billion, or 78% of all investments. The figures represent the highest dollar amount and the highest proportion of total investments ever reported by the survey.
More information on the survey results can be located on the web at http://209.67.194.61/index.asp