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Venture Capital Investments Up 24% In 1998

March 12, 1999

U.S. venture capital investments for 1998 were 24 percent higher than record levels set in 1997, according to the latest Pricewaterhouse-Coopers Money Tree Survey. Results from the survey of deals made during the fourth quarter of 1998 revealed venture capital investment for 1998 totaled $14.27 billion — $2.78 billion higher than the total posted in 1997, and 78 percent higher than 1996 totals.

A sharp increase in technology sector investments is credited with much of the growth. Technology-based projects accounted for 76 percent of the deals made in 1998, nearly double what they were two years ago. With more than $3.5 billion posted, 1998 Internet-related deals rose 66 percent over 1997.

During the fourth quarter, 713 companies received a total of $3.67 billion, 11 percent higher than the same period in 1997. The following table shows the 1998 fourth quarter survey results by state and the state’s share of the total for the quarter. There were no venture capital investments reported for those states not included in the table.

More information about activity for the past four quarters may be found on the Pricewaterhouse-Coopers Money Tree site www.pwcmoneytree.com

STATE

# of PROJECTS

DOLLAR AMOUNT

(in Millions)

% of TOTAL $

AL

3

14.75

0.40

AZ

4

24.99

0.68

CA

247

1,448.96

39.51

CO

24

98.36

2.68

CT

8

76.75

2.09

DE

2

5.61

0.15

FL

8

74.41

2.03

GA

20

53.99

1.47

HI

2

0.13

0.00

IL

19

148.74

4.06

IN

1

0.50

0.01

IA

3

8.30

0.23

KS

1

8.50

0.23

KY

6

9.86

0.27

LA

5

22.18

0.60

ME

2

6.65

0.18

MD

13

119.88

3.27

MA

87

483.27

13.18

MI

11

21.50

0.59

MN

24

61.59

1.68

MO

7

47.12

1.28

NE

1

2.50

0.07

NV

3

1.53

0.04

NH

3

3.80

0.10

NJ

14

40.04

1.09

NY

35

208.85

5.69

NC

21

49.70

1.36

OH

9

27.49

0.75

OK

1

6.65

0.18

OR

4

17.86

0.49

PA

32

78.32

2.14

RI

1

5.00

0.14

SC

3

14.65

0.40

TN

7

8.56

0.23

TX

36

124.72

3.40

UT

4

27.80

0.76

VT

1

1.33

0.04

VA

14

153.33

4.18

WA

23

98.89

2.70

WV

1

1.10

0.03

WI

3

59.45

1.62

Total

713

$3,667.61

100.00