Apr. 29–Venture capital invested in Florida companies hovered near an eight-year low during the first quarter as fund managers remained cautious about the economy in general and technology start-upsin particular.<\/p>\n
The closely watched MoneyTree Survey, to be released today, found that venture funds invested just $25 million in Florida companies during the first three months of the year.<\/p>\n
That’s the third-lowest total since the survey was launched in 1995. The money was invested in 10 companies, on par with the fourth quarter of 2002, when $20.8 million was invested. Only once has the number of Florida deals in a quarter fallen below 10 in the history of the survey, which is cosponsored by PricewaterhouseCoopers, ThomsonVenture Economics and the National Venture Capital Association.<\/p>\n
“The market is comatose,” said Marty Donsky, PricewaterhouseCoopers’ marketing manager for Florida. “The lack of activity suggests that Florida isn’t producing the kind of killer deals that attract money.”<\/p>\n
Florida ranked 21st among all states for venture-capital deals during the quarter — it’s lowest ranking on record and the first time the state hasn’t made the top 15.<\/p>\n
Three Central Florida companies received investment money:<\/p>\n
–AuthenTec, a Melbourne manufacturer of high-tech security devices, captured $12 million — nearly half the money invested in the state.<\/p>\n
–Image Guided Neurologics, a Melbourne neurological-device maker, took in $2.86 million.<\/p>\n
–TriCo Wireless PSC, a Winter Park wireless-phone company, collected $847,000.<\/p>\n
Donsky said the low level of investment, coming on the heels of the second-worst quarter on record, could be partly blamed on the small number of venture funds located in Florida.<\/p>\n
“Some suggest that Florida is too far away from the money centers, while others say venture capitalists just aren’t interested in digging for deals in the state,” Donsky said. “Another explanation out there is that, because the state doesn’t have many academic research centers, it is suffering.”<\/p>\n
Whatever the reason, companies in the state are falling behind those in other locales in the competition for venture money. When the quarterly MoneyTree survey was launched in 1995, 3.1 percent of the nation’s venture investments were made in Florida. During the first quarter of 2003, the state’s share of all money invested nationwide amounted to 0.7 percent.<\/p>\n
Ravi Ugale, a partner in Crossbow Ventures in West Palm Beach, said he expects the long decline to reverse itself soon.<\/p>\n
“I see a lot more enthusiasm for investing in Florida businesses,” Ugale said. “I think the remaining quarters of the year will be much better than what we’ve seen lately.”<\/p>\n
Ugale, whose firm invested in two Florida companies during the first quarter, said continued sluggishness in the economy, particularly in the technology sector, prompted many investments firms to pull back.<\/p>\n
“There is so much money sitting on the sidelines now that needs to be invested,” Ugale said. “Hopefully, we’ve hit bottom.”<\/p>\n
Ray Gilley, president of the Metro Orlando Economic Development Commission, said the low level of venture investments has been partly offset with non-profit and academic support for fledgling Central Florida businesses. He said the University of Florida Technology Incubator and the Central Florida Innovation Corp. have both helped new businesses grow.<\/p>\n
“It is through such sources of funding that we feel our region is still poised to grow,” Gilley said.<\/p>\n
—–<\/p>\n
To see more of The Orlando Sentinel — including its homes, jobs, cars and other classified listings — or to subscribe to the newspaper, go to http:\/\/www.OrlandoSentinel.com<\/p>\n
(c) 2003. Distributed by Knight Ridder\/Tribune Business News.<\/p>\n","protected":false},"excerpt":{"rendered":"
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