Price Waterhouse recently announced that venture capital investments hit an all time record in the third quarter of 1997. Total investments exceeded $3.5 billion, eclipsing the previous high of $3.2 billion reported in the second quarter of 1997. Compared to the third quarter of 1996, investments increased 75%, the largest percentage increase measured by the survey. These findings were released in the Price Waterhouse Venture Capital Survey, a quarterly report of venture capital investments throughout the United States.
A total of 675 companies received financing in the third quarter compared to 443 companies in the same period last year which is a 52% increase.
Technology-based companies also set a record in the third quarter. As a group, companies in the classifications of Biotechnology, Communications, Computers & Peripherals, Electronics, Environmental, Medical Instruments, Semiconductors, and Software & Information captured $2.25 billion, or 63% of all dollars invested and 68% of all companies.
The following represents the amount of venture capital dollars invested by region in the third quarter:
Amount Percentage
of Total Silicon Valley 1,088,611,500 30.5% Southeast 333,540,000 9.3% New York Metro 319,032,000 8.9% New England 296,159,000 8.3% Midwest 252,737,000 7.1% LA/Orange Co 250,709,000 7.0% Texas 246,977,000 6.9% Northwest 190,029,500 5.3% DC/Metroplex 125,517,000 3.5% San Diego 104,348,000 2.9% Southwest 95,613,000 2.7% Colorado 91,175,000 2.6% Philadelphia 70,532,000 2.0% North Central 37,752,500 1.1% South Central 29,550,000 0.8% Upstate NY 26,475,000 0.7% AK/HI/PR 15,400,000 0.4% Total $3,574,157,500 100%
Silicon Valley: N CA, Bay area and coastline
Southeast: AL, FL, GA, MS, TN, SC and NC
NY Metro: Metropolitan NY area, N NJ, and Fairfield Cnty, CT
New England: ME, NH, VT, MA, RI, & CT (excluding Fairfield Cnty)
Midwest: IL, MO, IN, KY, OH, MI, and western PA
LA/Orange Cnty: Los Angles, Ventura, Orange, & Riverside Counties
Northwest: WA, OR, ID, MT, and WY
DC/Metro: Washington, D.C., VA, WV, and MD
Southwest: UT, AZ, NM, and NV
Philadelphia Metro: Eastern PA, Southern NJ, and DE
North Central: MN, IA, WI, ND, SD, and NE
South Central: KS, OK, AR, and LA
Upstate NY: Northern NY except Metro NY City area
More information on the survey results can be located on the web at http://www.pw.com/vc.