VC Continues Upward Trend in Second Quarter with $5.6B Invested

The steady upward trend in venture capital (VC) investments continued in the second quarter of 2004, with $5.6 billion going to 761 companies, according to the latest PricewaterhouseCoopers/Thomson Venture Economics/National Venture Capital Association MoneyTree™ Survey. The Q2 2004 figure compares to $5 billion invested in the year's first quarter and $5.4 billion in the fourth quarter of 2003..

The Life Sciences sector outpaced other industries for the eighth consecutive quarter, among MoneyTree™ Survey highlights. Investments in the sector totaled $1.41 billion, or 25 percent of all venture capital. Biotechnology and Medical Devices, the sector's two components, accounted for $922.8 million and $485.3 million, respectively. A total of 85 biotech and 70 medical device companies were funded during the quarter.

Software, with 212 companies securing $1.2 billion in Q2 2004, remained the single-largest industry category for the second consecutive quarter. The Telecommunications Industry showed a decline from the prior quarter, with $518 million going to 59 companies.

Detailed information for the second quarter of 2004, as well as some historical data dating back to 1995, is available at www.pwcmoneytree.com. For comparison, 16 statistical tables available for each of the first two quarters of 2004 break down VC data by just about any measure: congressional district, major metropolitan area, state, region, nation of funding source and others. The tables may be more readily accessed by visiting: http://www.ventureeconomics.com/vec/statshome.htm