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COUNCIL FOR ENTREPRENEURIAL DEVELOPMENT (CED) RELEASES VENTURE CAPITAL SURVEY RESULTS
Findings show investors' primary focus on building profitability
April 25, 2002, Research Triangle Park, NC - The Council for Entrepreneurial Development (CED) today announced the first set of results from its member company survey, which analyzed funding priorities and perceptions amongst emerging companies towards the investment community. CED conducted this study to take the pulse of emerging companies prior to next week's 19th annual Venture 2002 conference, being held April 30-May 1, 2002 in Chapel Hill, NC.
CED based its results on a poll of executives from 71 member companies, representing a diverse cross-section of industries including life science and related technologies, information technology, and telecommunications companies. Findings showed the following trends:
- 93 percent of companies surveyed agreed that venture capitalists (VCs) were putting less emphasis on achieving a quick initial public offering (IPO), and were instead focusing on building profitability.
- 58 percent of emerging companies anticipated an IPO or significant acquisition within 2-5 years and 29 percent within 5-8 years, while fewer than 10 percent were looking for an IPO or significant acquisition within 2 years.
- In regards to the Research Triangle, 75 percent of emerging company members agreed that the growing rift between VCs and limited partner investors is cutting off the flow of cash to startups and is stifling innovation in Silicon Valley.
"The results of this survey indicate that emerging companies are facing pressure from investors to build solid business fundamentals and have recognized that in the current business climate, success must be achieved by setting longer-term goals," said Monica Doss, president of CED. "Findings also show the importance of continuing innovation to the investment community."
CED will follow today's results with a survey of the capital investment community, to be released at Venture 2002. This second survey will examine where VCs are putting their dollars and what opportunities they see in the Research Triangle Park region. In addition to these results, Venture 2002 will include presentations by nearly 30 emerging companies from an array of industries seeking either initial or subsequent stages of professional equity capital. The conference will include extensive networking opportunities and exclusive investor-only events.
Doss added, "We anticipate that Venture 2002 will showcase successful market strategies from emerging companies and provide an in-depth look into the health of the RTP investment community."
About Venture 2002: CED's upcoming 19th annual Venture 2002 Conference - where great minds meet smart money - is scheduled for April 30-May 1, 2002 at The Friday Center in Chapel Hill, NC. Last year's conference, Venture 2001 drew a crowd of more than 1,100 investors, service professionals, entrepreneurs and others involved in the entrepreneurial funding process from throughout the United States. Interested parties should visit the conference Web site at www.cednc.org/venture/2002.
About CED: The Council for Entrepreneurial Development, located in Research Triangle Park, NC, is a private, non-profit organization 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 through annual conferences, seminars, workshops and monthly programs on entrepreneurial management and finance. CED is the largest entrepreneurial support organization in the nation with more than 5,000 members representing 1,200 entrepreneurial companies, financiers and professional firms. www.cednc.org