Useful Stats I: Two sources for 2nd Quarter VC Data by State

Venture capital investment continued downward in the second quarter of 2002, according to the PricewaterhouseCoopers/Venture Economics/National Venture Capital Association MoneyTree™ Survey.

Total disbursements, which dropped to $5.7 billion and the lowest level since the third quarter of 1998, reflected an 11 percent decrease from the first quarter of 2002. A total of 819 companies received venture funding — a small change from the 826 companies the previous quarter.

While the survey shows most industries continued declines evidenced in the first quarter, some industries improved. At $958 million, the second highest amount, the biotechnology industry showed a 15 percent increase in dollars invested. The medical devices sector also demonstrated growth over the previous quarter, with investment increasing 43 percent to $556 million. Overall, the life sciences industries accounted for 27 percent of all venture capital investing, the highest allocation in the last five years, according to the survey.

Despite suffering a 16 percent decrease over the previous quarter, the software industry remains the leader with $1 billion in venture capital investment. Similarly, semiconductor investments fell 31 percent to $284 million.

The second quarter 2002 MoneyTree™ survey results are available at: http://www.pwcmoneytree.com, http://www.nvca.org, and http://www.ventureeconomics.com.

SSTI also has prepared a table <http://www.ssti.org/Digest/Tables/081602t2.htm> to present MoneyTree™  results by state, including data for the number of deals, total amount invested, and average deal size.

Growthink Survey

The Growthink Total U.S. Venture Capital Report for the Second Quarter 2002 profiles 579 companies that received more than $6.2 billion in the second quarter of this year.

The new report finds almost 76 percent of the total activity in the second quarter went to companies in the top 10 metropolitan areas. The San Francisco Bay Area led the U.S. in dollars invested, capturing $1.9 billion (30.1 percent) of the nation's total, according to the report. Boston followed with $763 million (12.2 percent) via 62 deals, while New York City had $457.5 million (7.3 percent).

The remaining top 10 metro areas were Washington D.C., San Diego, Atlanta, Seattle, Chicago, Los Angeles and Orange County, CA. Of these areas, Atlanta, Seattle, Chicago, and Orange County, CA, improved their ranks from the first quarter of 2002. Los Angeles dropped from sixth to ninth, and Denver and Dallas fell from the top 10. No city in Texas was represented in the top 10 for the first time in two years.

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.