Press Release
Contact: Cassandra Cranston |
Phone: (919) 549-7500 |
North Carolina Venture Investments Surged in 2007
Seed and Early Stage Investments Increase Reversing Recent Trends
Research Triangle Park, N.C., April 16, 2008 – The Council for Entrepreneurial Development (CED) today announced the results of their 2007 CED North Carolina Venture Report in conjunction with the start of CED’s 25th annual Venture conference in Durham, NC. According to the report, North Carolina companies raised more than $900 million in venture capital investments - a 72% increase over 2006. Nationally, venture capital increased by 16% over 2006.
CED’s data mirrors the trends reported in the 2007 PriceWaterhouseCoopers/National Venture Capital Association MoneyTree Survey, which ranked North Carolina 8th in the nation with $812 million, matching its previous highest national ranking in 2005. CED’s figures show higher total investment. The $909.93 million reported reflects inclusion of equity money raised by venture backed companies for acquisitions and angel investments, both of which are omitted from the MoneyTree figures.
Key findings for North Carolina include:
- North Carolina was the southeastern leader, ranking in the top 10.
- Seed and early stage investment increased from $98 million in 2006 to $127 million in 2007 and from 25 deals to 41 in 2007.
- North Carolina’s average deal size increased relative to the national average, $10.47 million, as compared to $7.71 million nationally. Investments greater than $10 million accounted for 77% of the total dollars invested statewide, compared to 75% in 2006.
- North Carolina’s technology industry outpaced the life science industry for only the second time since 2001, with investments in technology companies comprising 54% of all investments made in North Carolina. North Carolina’s technology industry moved solidly up the national rankings, with software and telecommunications as the leading market sectors.
- Triangle companies accounted for 87.5% of total dollars raised statewide, compared to 66% in 2006. The Triad raised 6.47% of the state’s dollars in 2007, compared to 0.9% in 2006. Charlotte decreased from raising 27.1% of the state’s dollars in 2006 to raising 5.7% in 2007.
“North Carolina’s gains are impressive and reflect our long term commitment to enabling entrepreneurial success,” notes Monica Doss, President of the CED. “The strong increases in seed and early stage deals bode well for a strong pipeline. As we celebrate the 25th anniversary of CED’s Venture conference, we are gratified that two thirds of the top 15 deals were recent presenters.”
A copy of the 2007 CED North Carolina Venture Report is available online, please visit www.cednc.org/resources/reports_and_surveys/vc_report/.
About the Council for Entrepreneurial Development
The Council for Entrepreneurial Development (CED) is a private,
non-profit organization founded in 1984 to identify, enable
and promote high-growth, high-impact companies and accelerate
the region’s entrepreneurial culture. Headquartered in the
Research Triangle Park, CED is the oldest and largest entrepreneurial
support organization in the nation with more than 5,000
active members representing over 1,100 companies. CED provides
know-how, networking, mentoring and capital formation resources
to new and existing high-growth entrepreneurs through more
than 150 annual conferences, forums, workshops, programs
and through publications and web-based resources. CED has
helped entrepreneurs, investors, service partners, academicians,
researchers and public policy makers in diverse emerging
industries and at all stages of development – from high-tech,
production-based organizations to service companies, from
one-person start-ups to 1000-person businesses. www.cednc.org.
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