Press Releases
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November 18, 1997 |
Contact: Carolyn Foy |
Venture Investment in Research Triangle Companies Strong in First Half 1997
Nov. 18, 1997, Research Triangle Park, N.C. -- Triangle entrepreneurs raised $58.37 million in venture capital during the first half of 1997, according to figures released by the Council for Entrepreneurial Development (CED). With the heaviest investment activity projected for the fourth quarter, the CED anticipates topping last year's record investment total of nearly $120 million.
"This strong investment activity puts the Triangle into the forefront of high-tech entrepreneurship," said Monica Doss, executive director of the CED. "It is particularly noteworthy that many of the deals were done by venture capital firms located in North Carolina."
The venture funds were invested in 26 businesses. Of those, 11 were computer and software ventures, nine were pharmaceutical or health diagnostic companies, two were telecommunications firms and two were healthcare providers. Two businesses fell outside of these categories.
The largest dollar amounts went to the nine "Life Sciences" companies, which garnered $32.742 million dollars, more than 55 percent of the total. The 11 "Computer and Software" firms drew investments worth $19.043 million, 33 percent of the total; "Telecommunications" received $1.3 million and 2 percent; "Healthcare" drew $3.525 and 6 percent. "Other" companies got $2.03 million and 3 percent.
An overwhelming number of the businesses--23--are technology-based ventures, garnering almost 95 percent of the funds invested, or $54.842 million dollars. The largest single investment was $12.8 million and went to a pharmaceutical company.
The CED figures come from a survey of venture capital investments as reported by both investors and entrepreneurs. The CED has been reporting annual investment figures since 1986, but with the entrepreneurial explosion that has taken place in the Triangle during the past few years, CED decided to survey investments at the year's halfway mark also.
"Entrepreneurial activity has been so strong recently that we want to keep a closer eye on the trends," said Doss. "New technology companies are starting on a daily basis and they are being funded faster and taking root more quickly than ever before."
About CED
The Council for Entrepreneurial Development, located at the CED Entrepreneurship Center in Research Triangle Park, NC, was formed in 1984 to stimulate the creation and growth of high-impact companies in the greater Research Triangle region. CED provides education, mentoring and capital formation resources to new and existing high-growth entrepreneurs. CED sponsors annual conferences, seminars, workshops and monthly programs on entrepreneurial management and finance. CED also offers the FastTrac entrepreneurial training program, youth programs and other outreach programs.
CED is a private, non-profit organization and is the largest entrepreneurial support organization in the nation with more than 3,000 members representing 1000 entrepreneurial companies, financiers and professional firms.
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