Growthink Provides VC Deals on Metro Level

More than $4.7 billion of venture capital was invested in 524 private companies, according to Growthink Private Equity Funding Reports for the Fourth Quarter 2002. Companies securing investments numbered 30 less than the previous quarter.

Among major metropolitan areas, the San Francisco Bay Area continued to lead the nation with $1.43 billion in investments, or 30.5 percent of the nation's total, the Growthink data shows. Boston followed with $460.6 million (9.8 percent) and 58 deals, and Washington D.C., with 27 deals, was next at $274.3 million (5.8 percent). Dallas was the fourth leading metro area, where 15 companies raised $204.5 million.

Along with Dallas, the Minneapolis/St. Paul metro area (eighth) moved into the top 10 with $141.5 million in VC investments. Chicago and Los Angeles both dropped out of the top 10, which totaled 67.6 percent of the nation's total fourth quarter activity. San Diego, New York City, Orange County (CA), Seattle and Research Triangle (NC) were the other leading metro areas.

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 at: http://www.growthinkresearch.com

Other Angel and VC News

A new program designed to match entrepreneurs with Central New York investors is close to reality, according to The Post-Standard, a Syracuse, NY-based newspaper. The "Angel Network" will be based around a website, www.syracuseangels.com, that will not be available to the general public. Instead, investors will be able to view business plans submitted by entrepreneurs via a password system. The Greater Syracuse Chamber of Commerce will serve as a mediator between the two groups, arranging meetings when investors want to lend or invest money in the entrepreneurs' businesses. Further arrangements would be worked out between individual investors and businesses, the paper stated. The network is expected to launch in early March 2003 with up to 40 investors participating in the program.

On a much larger scale, efforts are underway in such states as New Mexico, where Governor Bill Richardson has proposed the state use up to $200 million (2 percent) of state permanent funds to invest in New Mexico businesses. In North Carolina, MCNC Ventures LLC, which was created by 1980 legislation to help attract high tech research and jobs, will invest $25 million in NC-based technology companies. South Carolina's State Legislature is considering bills that ultimately would encourage up to $100 million in VC investments using state tax credits. And, in Utah, lawmakers are considering a $100 million, private sector-created fund to bring venture capitalists to the state, the Associated Press recently reported. Tax credits expected to be part of the bill would form a safety net, providing up to $20 million a year in converted tax liability relief, should investors experience a small annual return.

On a down note, the Private Investors Network (PIN), a group of angel investors in the D.C. metro area, held its final meeting on Jan. 30, the Washington Post reported. As many as 130 members once were a part of PIN. The network was an incorporated entity of the Mid-Atlantic Venture Association (MAVA) that was organized through the Baltimore-Washington Venture Group (BWVG) within the University of Maryland's Dingman Center for Entrepreneurship. Factors such as less disposable income were cited by the Post as reasons for PIN's demise.