Venture Capital Reports: 2000: First Quarter
OverviewSummary Statistics
Research Triangle Investments By Deal Size
Top Ten Research Triangle Recipient Companies
Research Triangle Investments By Industry Category
Research Triangle Investments By Company Stage
Investments By North Carolina Region
Investors in Research Triangle-Based Companies
Statewide and Research Triangle-Based Investment Recipients
Research Methodology
A total of $297.6 million was invested in 36 Research Triangle-based companies in Q1 of 2000. Throughout North Carolina, a total of 51 companies obtained $427.86 million dollars through 52 financing deals.
According to various sources, Research Triangle-area companies participated in at least 10 mergers and acquisitions worth greater than $1.06 billion in Q1. (The actual total is likely significantly higher as most of the deals did not offer public details on the transaction amounts.)
This quarterly report is based on information available as of September 7, 2000. Additional information or changes received after that date are reflected in the Year to Date report; however, once posted, quarterly reports are not revisited.
The following are summary statistics for CED's Q1 2000 Research Triangle Venture Investment Report findings:
Research Triangle Summary
Statistics
With 37 investments made in 36 companies, the number
of Q1 deals increased by 71% year over year, up from
21 deals in the same period in 1999.
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The average Q1 investment was $8.04 million (vs. $16.39 million in the same period in 1999).
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The median Q1 investment was $5 million (vs. $1.87 million in the same period in 1999).
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Q1 individual investments ranged from a total of $28 million to $10,000. (vs. $231.4 million to $20,000 during the same period in 1999)
With 52 investments made in 51 companies, the number of Q1 deals increased by 108% year over year, up from 25 deals in the same period in 1999.
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The average Q1 investment was $8.22 million (vs. $14.68 million in the same period in 1999).
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The median Q1 investment was $4.5 million (vs. $1.01 million in the same period in 1999).
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Q1 individual investments ranged from a total of $53.45 million to $10,000. (vs. $231.4 million to $20,000 during the same period in 1999)
Research Triangle Investments By Deal Size
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In Q1, the Research Triangle region recorded four investments at greater than $20 million for 33.02% of the total dollars raised; 20 companies raised at least $5 million for than 90.03% of the total dollars raised.
Top Ten Research Triangle Recipient Companies
At least 36 Research Triangle-based companies received funding in 37 deals in Q1. The top ten recipient companies for the period were as follows:
|
BioStratum |
$28.0 million |
|
HAHT Software, Inc. |
$25.0 million |
|
SourceAlliance.com |
$25.0 million |
|
Microcosm Technologies |
$20.3 million |
|
Eduprise |
$18.0 million |
|
Pozen Inc. |
$18.0 million |
|
Clarkston-Potomac Group |
$15.0 million |
|
Intelligent Therapeutic Solutions |
$15.0 million |
|
Paradigm Genetics |
$15.0 million |
|
Xanthon |
$12.0 million |
|
(For a total list, see below.) |
|
Fifty-one companies based in the state of North Carolina received funding in 52 deals in Q1. The statewide top *ten recipient companies for the period were as follows:
|
Grapevine Television |
$53.5 million |
|
You Centric |
$30.5 million |
|
BioStratum |
$28.0 million |
|
HAHT |
$25.0 million |
|
SourceAlliance.com |
$25.0 million |
|
Microcosm Technologies |
$20.3 million |
|
Eduprise |
$18.0 million |
|
Pozen Inc. |
$18.0 million |
|
*Three companies tied for 9th with $15.0 million each |
|
Research Triangle Investments By Industry Category
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In the Research Triangle, the computer software sector garnered 36.99% of the dollars raised in Q1, followed by the life science sector with 33.48% of the total financing.
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The Research Triangle computer software received the largest portion of deals in Q1, with 29.73% of the total. The life science sector followed, with 27.03% of the deals.
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Statewide
, the computer software sector garnered 36.13% of the total dollars invested and 25% of the deals. The internet sector also had 25% of the deals, but had only 14.32% of the dollars raised. The life science sector had 23.9% of the dollars raised in Q1 and 21.15% of the deals.
Research Triangle Investments By Company Stage
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In Q1, expansion stage companies accounted for over half (50.65%) of all the dollars invested, followed by the late stage category with 26.3% of the total dollars raised.
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In Q1, the expansion stage companies accounted 45.95% of all the financing deals, followed by early stage deals, which were 29.73% of the total deals.
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Statewide
, expansion stage companies accounted for over half (63.15%) of the financing dollars in Q1, and for almost half (44.23%) of all the financing deals. The late stage followed in dollars raised with 18.3% of the invested dollars. The early stage followed in deals accounting for 30.77% of the deals.
Investments By North Carolina Region
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For the state as a whole, the Research Triangle region had 37 deals in Q1. Charlotte-based companies reported 11 deals. Two Eastern NC companies raised funds, two Piedmont companies received funding, but no Western companies reported venture financing for the quarter.
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For the quarter, the Research Triangle claimed 69.56% of the dollars raised, with the Charlotte region raising 24.96% of the total dollars.
Investors in Research Triangle-Based Companies
A number of companies, angels, and private investors made investments in Research Triangle companies in Q1. In addition, over 50 investment firms invested in Research Triangle-based companies in Q1. Among those funds investing include:
|
A.M. Pappas & Associates |
Idanta Partners |
Statewide and Research Triangle-Based Investment Recipients
Fifty-one North Carolina-based companies received venture funding during the quarter. Among those companies reporting financing include:
|
Accordant |
InternetSoccer.com, Inc. |
SoDeog Technologies, |
CED's survey figures differ from other organizations that report venture investments nation-wide due to a different reporting methodology. CED collects and verifies investment information for publication from a variety of published sources such as NVCA reports, PricewaterhouseCoopers MoneyTree© reports, and other business publications; and by directly surveying regional venture capitalists and local entrepreneurs. Vigorous efforts are made to reconcile discrepancies in all information; however, where differences occur, CED relies on direct information from the company and/or its investors about the specific amounts and closing details.