Apr. 29–TAMPA, Fla.–Investors pumped less money into upstart technology companies at the start of 2003 than they did at the end of 2002, but Florida saw a small boost in venture funding over thesame period, according to two recent venture capital reports.
Ernst & Young and VentureOne reported a 21 percent drop in national venture funding from the fourth quarter of 2002 to the first quarter of 2003. The companies’ Venture Capital Survey says U.S. people and companies invested $3.4 billion in technology-related firms in the first quarter, compared to $4.3 billion in the previous quarter, and $5.7 billion for the same quarter in the previous year.
Ernst & Young’s Don Williams said the first-quarter figures don’t necessarily mean that the pace of venture capital investment is slowing down.
The first quarter is generally a slow period because many investors are busy tying up loose ends and taking care of administrative needs from the previous year, he said. Also, the war in Iraq and other world events had an immeasurable impact on investment in the first quarter, he said.
In Florida, venture capitalists invested $24.9 million in the first quarter, up from $20.8 million in the previous quarter, according to PricewaterhouseCooper’s MoneyTree report.
Just one company in the greater Tampa Bay area received venture funding: Lakeland-based Solicore got $100,000.
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