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Venture Capital Investments at Record Level for Second Straight Quarter
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.