Economy watchers scouting for signs of recovery can look to the resurgence of investing activity in the second quarter. According to The MoneyTree Survey by PricewaterhouseCoopers, Thomson VentureEconomics and the National Venture Capital Association, venture capitalists loosened their purse strings.
The number of companies in the state receiving funding nearly doubled, jumping to 25 from 13 in the previous quarter. The total amount invested in New Jersey companies increased some 21% to $141.6 million from the first quarter. New Jersey ranked sixth among states in total amount invested.
Investments across the country increased in the second quarter to $4.3 billion up from $4 billion in the first quarter. Nationwide, 669 firms found money as compared with 647 in the first quarter. Among the state’s business sectors, software recorded $33 million in total investments, 23.3% of the quarter’s infusion. Biotechnology was a close second with $32 million, 22.6% of the total invested. The medical device industry gathered $13.7 million.
HEALTHY IMPROVEMENT
The local company receiving the largest investment, $20 million, was ESP Pharma, a specialty pharmaceutical company in Edison. ESP Pharma plans to use the funding to support its acquisition and product development strategies. In June the company bought the worldwide rights for Busulfex, a drug used for patients who have recieved bone marrow transplants, from Orphan Medical in Minnetonka, Minnesota.
“Since initiating operations about 11 months ago, we have successfully raised nearly $50 million despite a difficult capital market environment,” said John T. Spitznagel, ESP’s CEO.
That market environment is showing signs of improvement, renewing the prospects that other young companies will find the funding they need in the latter half of the year. The bloom is returning to the investment scene.
email jpruth@njbiz.com
Copyright Snowden Publications, Inc. Aug 4, 2003
