Copyright State Science & Technology Institute 2002. Information in this issue of the SSTI Weekly Digest was prepared under a cooperative agreement with the U.S. Department of Commerce, Economic Development Administration. Redistribution to all others interested in tech-based economic development is strongly encouraged — please cite the State Science & Technology Institute whenever portions are reproduced or redirected. Any opinions expressed in the Digest do not necessarily reflect the official position of the U.S. Department of Commerce.
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1998 VENTURE CAPITAL INVESTMENTS CONTINUE 1997'S RECORD PACE
Price Waterhouse recently announced that venture capital investments in the first quarter of 1998 hit $3.6 billion, just slightly below the all-time high of $3.7 billion set in the fourth quarter of 1997. Compared to the first quarter of 1997, investments increased 54%. These findings were released in the Price Waterhouse Venture Capital Survey, a quarterly report of venture capital investments throughout the United States.
The following listing shows the amount of venture capital dollars invested by region in the first quarter of 1998 by Region, Investment Amount, and % of Total:
Region Investment
Amount% of
TotalSilicon Valley 821,396,000 22.8% New England 544,042,000 15.1% New York Metro 293,911,489 8.2% Midwest 280,236,000 7.8% Southeast 240,908,000 6.7% LA/Orange County 238,510,000 6.6% Philadelphia Metro 202,356,000 5.6% DC/Metroplex 181,327,000 5.0% Texas 172,465,000 4.8% San Diego 163,739,000 4.5% Colorado 143,549,000 4.0% Northwest 82,890,000 2.3% North Central 74,765,000 2.1% South Central 57,040,000 1.6% Southwest 52,008,000 1.4% Upstate New York 27,369,000 0.8% Sacramento/N. California 24,000,000 0.7% Alaska/Hawaii/Puerto Rico 0 0.0% Total $3,600,511,489 100.0% Silicon Valley:N CA, Bay area and Coastline
New England: ME, NH, VT, MA, RI, and CT (excluding Fairfield County)
NY Metro: Metropolitan NY area, N-NJ, and Fairfield County, CT
Midwest: IL, MO, IN, KY, OH, MI, and western PA
Southeast:AL, FL, GA, MS, TN, SC, and NC
LA/Orange County: Los Angeles, Ventura, Orange & Riverside Counties
Philadelphia Metro: Eastern PA, Southern NJ, and DE
DC/Metro: Washington DC, VA, WV, and Maryland
Northwest: WA, OR, ID, MT, and WY
North Central: MN, IA, WI, ND, SD, and NE
South Central: AKS, OK, AR, and LA
Southwest: UT, AZ, NM, and NV
Upstate NY: Northern NY except Metro NY City area
Sacramento/N CA: Northeastern CAA total of 703 companies received financing in the first quarter compared to 572 companies a year ago, a 23 percent increase.
Technology-based companies also set a record in the first quarter. As a group, companies in the classifications of Biotechnology, Communications, Computers & Peripherals, Electronics, Environmental, Medical Instruments, Semiconductors, and Software & Information accounted for 65% of all investments in terms of dollars and 68% in terms of number of companies -- $2.34 billion and 479 companies.
More information on the survey results can be located on the web at http://www.pw.com/vc. A breakout of state investments by industry can be obtained from SSTI by calling 614/421-SSTI (7784).
DOE SELECTS STTR PHASE I AWARDS
The Department of Energy (DOE) has selected 14 applications for funding under the FY98 Phase 1 portion of the Small Business Technology Transfer (STTR) Program. The projects selected cover a broad spectrum of research and development in the areas of basic energy science, fusion energy, biological and environmental research, fossil energy, and non-proliferation and national security. The Phase 1 grants, averaging $100,000 over nine months, are expected to begin this month.
The STTR program requires small businesses to conduct cooperative research and development by partnering with a research institution. The following list shows the number of companies and research institutions in each state that were involved in selected proposals. (Because the company and the research institute are not required to be from the same state, state totals for the two categories may be different).
State Company Res. Institute California 5 5 Colorado 1 2 Georgia 1 0 Hawaii 0 1 Illinois 1 1 Massachusetts 2 0 New Mexico 0 1 Ohio 2 0 Pennsylvania 0 1 Tennessee 1 0 Texas 0 2 Virgina 1 0 West Virgina 0 1 Total 14 14 A list of the applications chosen for STTR Phase 1 awards is available on the web at http://sttr.er.doe.gov/sttr98/awrd98p1.sph.
SMALL BUSINESS PERSON OF THE YEAR NAMED
Ross Youngs, president of Univenture, Inc. of Columbus, Ohio, has been named the National Small Business Person of the Year. Youngs was selected from a field of 53 Small Business Administration (SBA) small business winners representing the fifty states, the District of Columbia, Puerto Rico, and Guam.
The national entrepreneur award is a highlight of SBA's national Small Business Week celebration. Small Business Week, now in its 35th year, honors the contributions of the nation's small business owners. Winners are selected on their record of stability, growth in employment and sales, sound financial reports, innovation, and the company's response to adversity, and community service.
Youngs founded Univenture ten years ago after developing a lighter, cheaper and more environmentally friendly product for displaying and storing compact discs. Today, Univenture is a $15 million dollar business that employs 119 people.
The award for first runner-up went to Fleischer Manufacturing of Columbus, Nebraska. Fleischer Manufacturing developed and produces tillage equipment that allows farmers to save soil and water during cultivation. The company employs roughly 175 people, and has experienced a 60 percent growth in sales since 1994 with sales in 1997 of about $14 million.
The award for second runner-up went to Litronic Industries, Inc. of Irvine, California. Litronic Industries designs and manufactures information security software and devices, and customized electronic interconnects. The company employs 148 people and has annual sales of more than $22 million.
Much of today's economic prosperity can be attributed to this nation's 23.6 million small businesses. Small businesses represent 99.7 percent of all employers, account for 47 percent of all sales in the country, employ 53 percent of the private work force, and are responsible for more than half of the private gross domestic product. New business formation reached another record level in 1997, with 884,609 new employer firms, the highest ever, and a five percent increase over the last record set in 1996.
For additional information about these award winners, as well as a list of additional awards, visit the SBA homepage at www.sba.gov/news/current/98-38.html.
COLWELL CONFIRMED AS NEW NSF DIRECTOR
Rita Colwell was confirmed by the Senate on May 22 as the new National Science Foundation (NSF) Director. She is expected to be sworn in within a few weeks. Dr. Colwell was the President of the University of Maryland Biotechnology Institute and former President of the American Association for the Advancement of Science. She has a Ph.D. in marine microbiology from the University of Washington.
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