Useful Stats: 4th Quarter VC Data by State

Two independent surveys of venture capital investments made during the fourth quarter of FY 2001 suggest an end to downward trends in the flow of money and number of VC placements.



MoneyTree™ Survey

The fourth quarter 2001 results of the MoneyTree™ survey measuring venture capital activity across the country are now available online. This is the first survey conducted since the merger of the two most widely known quarterly investment surveys, the PricewaterhouseCoopers/Venture Economics MoneyTree™ Survey and the quarterly survey conducted by the National Venture Capital Association.



With total investments of $7.1 billion, the fourth quarter data provides evidence that the VC community's reluctance to invest, which started in the third quarter of 2000, was finally reversing itself. Figures for both the total number of deals and total investments were higher than the third quarter.



According to the report's highlights, the biotech and software industries showed the most strength, respectively capturing 14 percent and 22.5 percent of the fourth quarter investments.



SSTI has prepared the accompanying table to present the fourth quarter 2001 MoneyTree™ results by state. Data for the number of deals, total amount invested, and average deal size are included in the table.



As a result of the merger, the MoneyTree™ survey results are now offered on three websites: http://www.pwcmoneytree.com, http://www.nvca.org, and http://www.ventureeconomics.com.



Growthink Survey

The Growthink Private Equity Funding Reports for the Fourth Quarter 2001 found the number of companies securing investments grew compared to the third quarter, while the total value of investments declined slightly. The new report profiles 760 companies that received more than $8.1 billion during the final three months of 2001. For comparison, investments during the third quarter totaled nearly $8.4 billion in only 702 companies.



Growthink found the New York City metro region experienced the greatest decline, while still capturing $509 million through 42 deals. The top 10 metro areas for VC investments — the San Francisco Bay Area, Boston, New York, Washington D.C., San Diego, Austin, Dallas, Irvine/Santa Ana, Denver and Pittsburgh — accounted for nearly 72 percent of the total activity for the quarter. Falling out of the top 10 from the third quarter were Los Angeles and Chicago.



Growthink reports only private, U.S. based companies that receive equity investments of $300,000 or more. The company does not collect information on venture capital investments in public companies, debt financing or other areas. The fourth quarter survey, including data by geographic region, state, metro area, and industrial sector, is available in individual sections or in its entirety from Growthink at: http://www.growthink.com