Jul. 29–Venture capital investment rose nationally during the second quarter this year, ending nearly two years of quarterly declines and giving some industry observers hope that funding levels havestabilized.<\/p>\n
Investment in Connecticut companies rose to $114 million — its highest level since the fourth quarter of 2001.<\/p>\n
Two separate venture reports issued Monday showed that venture financing rose nationally, to $4 billion or more, during the second quarter. That sum was reported as up 7 percent by one report and up 14 percent by the other.<\/p>\n
Industry experts said it was too early to tell whether the second-quarter results signaled a move away from further declines. However, they said the figures indicate that venture investment has returned to historically normal, pre-tech bubble levels of financing.<\/p>\n
“I think the thing to note is that the last four quarters have been around $4 billion, and that’s where a lot of folks in the industry think it should be,” said John Taylor, vice president of research for the National Venture Capital Association.<\/p>\n
At $114 million, venture financing in Connecticut mirrored the national results, according to the MoneyTree Survey issued by PricewaterhouseCoopers, Thomson Venture Economics, and the National Venture Capital Association.<\/p>\n
That’s up more than 300 percent from the $27.3 million that Connecticut companies received during the first quarter of 2003.<\/p>\n
The largest single chunk of money in the state — $51 million — went to New Haven-based Rib-X Pharmaceuticals. Other recipients included Oakleaf Waste Management in East Hartford, $31.6 million; Mangrove Systems Inc., in Wallingford, $10.4 million; and ISOPur Fluid Technologies Inc. of Rocky Hill, $8.5 million.<\/p>\n
“I would say that venture capitalists have become cautiously more interested in putting their uninvested funds to work,” said Owen Davis, who runs the technology practice for PricewaterhouseCoopers in Connecticut and Westchester County.<\/p>\n
“I think it’s premature to call it an uptick.”<\/p>\n
Diane Daych, a principal at Conning Capital Partners in Hartford, said other indicators need to be strong before a turnaround can occur. Corporate technology and capital spending need to recover, and windows for initial public offerings need to reopen for a couple of consecutive quarters, she said.<\/p>\n
“I think $4 billion, that’s a good sustainable pace . . . but we kind of need those others factors to look at where the market is,” she said.<\/p>\n
The biotechnology and medical device industries drove much of the overall increase during the quarter, according to the U.S.<\/p>\n
Venture Capital Survey issued by Ernst & Young and VentureOne.<\/p>\n
Early stage investments also increased, according to the report.<\/p>\n
—–<\/p>\n
To see more of The Hartford Courant, or to subscribe to the newspaper, go to http:\/\/www.ctnow.com<\/p>\n
(c) 2003, The Hartford Courant, Conn. Distributed by Knight Ridder\/Tribune Business News.<\/p>\n","protected":false},"excerpt":{"rendered":"
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