Apr. 29–Young Florida companies raised $24.9 million from venture capital firms during the first quarter, with 80 percent of the money in two later-stage deals for companies in Pompano Beach andMelbourne.
The first quarter total was nearly 20 percent higher than the 2002 fourth quarter, but the number of deals was the same in both periods — 10, according to the Money Tree survey prepared by PricewaterhouseCoopers/Venture Economics/National Venture Capital Association. The first quarter of 2002 saw $117.6 million raised in 17 deals.
ScriptLogic Corp. in Pompano Beach, which makes desktop administration software for Windows-based networks, booked $8 million in equity funding led by Insight Venture Partners.
Authentec in Melbourne, which makes biometric security devices and applications, raised $12 million from Sierra Ventures, Knickerbocker Private Investment Management, Advantage Capital Partners and Stonehenge Capital.
The good news in the first quarter numbers is that young technology companies got most of the money, unlike prior quarters where it seemed venture investors have sworn off tech firms.
But the bad news is that Florida’s $24.9 million in deals ranked 21st in the nation. According to PwC, that’s the lowest ranking for the state since it began its Money Tree survey in 1995.
Marty Donsky, PwC’s MoneyTree manager for Florida, said the level of funding seen in the first quarter is pretty much where the state was before the explosion of venture capital and start-ups in the late 1990s.
Also, many of the surviving venture capital firms are pumping money into companies already in their portfolios, rather than seeking new investments.
Three Florida-based VC firms — Stonehenge and Advantage Capital in Tampa and CrossBow Ventures in West Palm Beach — were among those investing in local companies.
Venture capital funds invested in the first quarter fell to $3.8 billion from $6.5 billion in the first quarter of 2002.
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