Venture Capital Investments at Record Level

August 29, 1997

Price Waterhouse recently announced that venture capital investments hit an all-time record in the second quarter of 1997. Total investments exceeded $3.18 billion, a 13% increase over the $2.80 billion reported in the second quarter of 1996, which held the previous record. These findings were released in the Price Waterhouse Venture Capital Survey, a quarterly report of venture capital investments throughout the United States.

The following table represents the amount of venture capital dollars invested by region in the second quarter:

Region Investment Amount % of Total Silicon Valley 1,034,247,000 32.5% New England 316,984,000 10.0% New York Metro 300,230,000 9.4% Southeast 282,906,000 8.9% Midwest 196,437,000 6.2% Texas 175,781,000 5.5% LA/Orange County 170,657,000 5.4% San Diego 128,420,000 4.0% Philadelphia Metro 113,355,000 3.6% DC/Metroplex 110,846,000 3.5% Northwest 101,177,000 3.2% North Central 87,271,500 2.7% Colorado 78,900,000 2.5% Southwest 26,760,000 0.8% South Central 22,798,000 0.7% Upstate New York 20,247,000 0.6% Sacramento/N. CA 13,000,000 0.4% AK/HI/PR 700,000 >0.1% Total $3,180,716,500 100%


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

Southeast: AL, FL, GA, MS, TN, SC and NC

Midwest: IL, MO, IN, KY, OH, MI, and western PA

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

Southwest: UT, AZ, NM, and NV

South Central: KS, OK, AR, and LA

Upstate NY: Northern NY except Metro NY City area

Sacremento/N. CA: Northeastern CA

A total of 697 companies received financing in the second quarter compared to 565 companies in the same period last year which is a 23% increase.

Technology-based companies also set a record in the second quarter. As a group, companies in the classifications of Biotechnology, Communications, Computers & Peripherals, Electronics, Environmental, Medical Instruments, Semiconductors, and Software & Information captured $2.23 billion, or 70% of all dollars invested and 71% of all companies.

More information on the survey results can be located on the web at http://www.pw.com/vc.