SSTI Digest

Virginia's Institute for Defense and Homeland Security recently named Henry Connors Jr. as its business development director.

The National League of Cities has hired Marilyn Mohrman-Gillis as director of policy and federal relations.

George Herrera, president and chief executive officer of the United States Hispanic Chamber of Commerce, recently announced his resignation, effective Jan. 20, 2004.

LaMoyne Hyde, director of the Idaho Department of Commerce, also announced he will resign his position by the end of the year.

Karl Koehler is returning to the Indiana 21st Century Research and Technology Fund to serve as its director.

Jerry Lonergan is Kansas Inc.'s new president.

Dr. Doros Platika is the new chief executive officer of the Pittsburgh Life Sciences Greenhouse.

Minnesota Technology Inc. has hired Wayne Pletcher as its new president.

Larry Walther has replaced Jim Pickens as director of the Arkansas Department of Economic Development. Pickens retired earlier this month.

For the fifth consecutive quarter, venture capital (VC) investments in the U.S. hovered around the $4 billion range, showing a sign of stability, according to two independent reports. The reports affirm the industry's shift in focus away from information technology and toward the life sciences.

While domestic VC investing appears to be on the mend, a European Commission report shows the European Union (EU) continues to lag the U.S. in investing activity. Venture capital investment in the EU has experienced a nearly 50 percent decline between 2000 (E19.6 billion) and 2002 (E10.1 billion), the report states. For comparison, U.S. venture capital investing in 2002 was E20 billion. The EU report is available at: http://europa.eu.int/comm/internal_market/en/finances/mobil/risk-capital_en.htm

Biotechnology is projected by many to be the "next big thing" for economic growth — and money is following the hype. Congress has over the last several years accomplished the goal of doubling the budget for the National Institutes of Health, already the nation's largest funder of life science research. Several issues of the SSTI Weekly Digest over the past few years have included stories of states and communities across the country investing heavily to capture some portion of the projected growth of this nascent industry. Now, private money has embraced the pursuit as last quarter marked the first time the biotech sector captured the largest share of reported venture capital investments (see story above).

In 2002, angels invested $15.7 billion in entrepreneurial businesses in the U.S., according to the Center for Venture Research. Yet – until now – there was no organization to establish best practices or collect data on how to maximize the performance of groups of angel investors.

The new Angel Capital Alliance, sponsored by the Ewing Marion Kauffman Foundation, already has been endorsed by 46 angel capital organizations throughout the U.S. and Canada, with many other angel groups interested in membership. Approximately 170 angel capital groups have been identified across the continent.