VC Declines in Third Quarter with $4.3B Invested

Venture capital (VC) investing dipped in the third quarter of 2004, with $4.3 billion going to 601 companies, according to the latest MoneyTree™ Survey by PricewaterhouseCoopers, Thomson Venture Economics and National Venture Capital Association. The Q3 2004 figure was below the prior quarter of $5.9 billion, but equal to the $4.3 billion posted in Q3 2003.

The Life Sciences sector continued to dominate as it has for the past nine consecutive quarters, among MoneyTree™ Survey highlights. Investments in the sector totaled $1.26 billion, or 29 percent of all venture capital. Biotechnology and Medical Devices, the sector's two components, accounted for $771.4 million and $486.3 million, respectively. Seventy-five biotech and 52 medical device companies were funded during the quarter.

With $942 million going to 160 companies, the Software Industry remained in the top slot as the largest single industry category. Software companies accounted for 22 percent of all venture dollars, keeping consistent with the industry's performance historically. Telecommunications continued its two-year decline, attracting $450 million via 58 deals or 10 percent of all VC.

Detailed information for the third quarter of 2004, as well as some historical data dating back to 1995, is available at www.pwcmoneytree.com. Statistical tables showing VC data by congressional district, major metropolitan area, state, region, nation of funding source and other measures are available for each quarter of 2004 thus far. The tables may be accessed by visiting: http://www.ventureeconomics.com/vec/statshome.htm