Venture Capital Report: 1996
There's good news for entrepreneurs - and investors - doing business in North Carolina's Research Triangle region. Respondents to CED's annual investment survey reported $118,513,163 in venture capital investments in 1996. This represents a 65% increase over the 1995 total and is the highest amount reported to date. The number of companies reporting investments increased as well, from 21 to 45 -- a rise of 119%.
Begun in 1986, the CED Annual Research Triangle Venture Capital Investment Survey is an indicator of availability of capital and entrepreneurial activity. The CED survey focuses on equity venture investments and excludes LBO, MBO or acquisition transactions.
Research Triangle Venture Interesting
Facts:
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A total of $118,513,163 was invested in 46 Triangle companies, a 65% increase in money invested and a 119% increase in the number of companies receiving investments over 1995.
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Life Science companies, which include biotechnology, pharmaceutical and biomedical firms, received a total of $47,645,000 - 40% of the total amount invested.
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Thirty-one percent of the 1996 dollars invested and 50% of the number of deals were done by early stage companies. In 1995, 76% of the dollars and 86% of the deals were early stage.
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The average financing was $2,576,373. The median deal was $1,080,000.
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Sixty-five percent of the investment funding came from outside of North Carolina - a total of $76,977,425, while North Carolina based funds provided the remaining $41,560,738.
Size of Investment
The size of investments reported ranged from $20,000
to $18,500,000. This is in contrast with the 1995
range of $200,000 to $12,000,000. The average
investment in 1996 was $2,576,373. The median
investment in 1996 was $1,080,000.
In-State vs. Out of State Investments
Sixty-five percent of the deals were done by North
Carolina-based venture funds for a total of
$76,977,425. The percent of in-state funding
increased from 13% in 1995 to 35% in 1996.
Industry Investments by Dollars
Life Science companies let the pack with 44% of the
dollars invested - $52,468,175. Computer and Software
companies followed with $34,344,988 - 29%.
Industry Investments by Deals
Twenty-two of the deals - 47% - were with Computer
and Software companies. Life Science companies
followed with 11 deals, representing 23%.
Telecommunication companies had four deals at 9%, and
the other three industry categories each claimed 7%
with 3 deals each.
Stage of Investment
The 46 companies were split evenly by stage of
investment. Twenty-three were early/seed companies
and 23 were late/expansion companies. Late-stage
companies received 69% of the total financing, or
$81,860,000.
Among the companies receiving venture capital
in 1996 were:
|
A&J Publishing |
Lambda Technologies, Inc. |
Among the funds making investments in 1996
were:
|
Blue Ridge Investors |
Primus Venture Partners |
