Venture Capital Reports: 2000: Second 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
North Carolina-Based Investment Recipients
Research Methodology
A total of $258 million was invested in 31 Research Triangle-based companies in Q2 of 2000. Throughout North Carolina, a total of 41 companies obtained $689.76 million dollars. Note that the Statewide total includes a $402 million deal by Carolina Broadband in Charlotte, NC.
According to various sources, Research Triangle-area companies participated in at least 16 mergers and acquisitions worth greater than $1.56 billion in Q2. (The actual total is likely significantly higher as the majority of 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 Q2 2000 Research Triangle Venture Investment Report findings:
Research Triangle Summary
Statistics
With 33 investments made in 31 companies, the number
of Q2 deals increased by 26.9% year over year, up
from 26 in the same period in 1999.
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The average Q2 investment was $7.82 million (vs. $10.17 million in the same period in 1999).
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The median Q2 investment was $2.5 million (vs. $2.46 million in the same period in 1999).
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Q2 individual investments ranged from a total of $100 million to $130,000. (vs. $84 million to $500,000 during the same period in 1999)
With 43 investments made in 41 companies, the number of Q2 deals increased by 19.4% year over year, up from 36 in the same period in 1999.
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The average Q2 investment was $16.04 million (vs. $8.12 million in the same period in 1999).
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The median Q2 investment was $2.5 million (vs. $2.01 million in the same period in 1999).
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Q2 individual investments ranged from a total of $402 million to $130,000. (vs. $84 million to $240,000 during the same period in 1999)
Research Triangle Investments By Deal Size
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In Q2, the Research Triangle region recorded three investments at greater than $20 million for 63.93% of the total dollars raised; 9 companies raised at least $5 million for 85.51% of the total dollars raised.
Top Ten Research Triangle Recipient Companies
At least 31 Research Triangle-based companies received funding in 33 deals in Q2. The *top ten recipient companies for the period were as follows:
|
Interpath Communications |
$100.0 million |
|
**BOPS Inc. |
$40.0 million |
|
Hiddenmind |
$25.0 million |
|
Peopleclick.com |
$16.0 million |
|
Cogent Neuroscience Inc. |
$15.0 million |
|
LIPSinc |
$9.0 million |
|
Koz Inc. |
$5.7 million |
|
Vios |
$5.0 million |
|
How Stuff Works |
$5.0 million |
|
*Three companies tied for 10th with $4
million each |
|
Forty-one companies based in the state of North Carolina received funding in 43 deals in Q2. The statewide *top ten recipient companies for the period were as follows:
|
Carolina Broadband |
$402.0 million |
|
Interpath Communications |
$100.0 million |
|
BOPS Inc. |
$40.0 million |
|
Hiddenmind |
$25.0 million |
|
Peopleclick.com |
$16.0 million |
|
Cogent Neuroscience Inc. |
$15.0 million |
|
Verian Technologies |
$13.0 million |
|
LIPSinc |
$9.0 million |
|
Koz Inc. |
$5.7 million |
|
*Three companies tied for 10th with $5 million each |
|
Research Triangle Investments By Industry Category
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In the Research Triangle, the internet sector garnered 51.42% of the dollars raised, followed by the computer hardware sector with 15.74% of the total financing.
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The Research Triangle internet industry had 33.33% of the total deals in Q2, followed by the computer software sector with 24.24% of the deals.
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Statewide
, the telecommunications garnered 58.72% of the total dollars invested in Q2, followed by the internet sector with 21.85% of the total dollars. Note that Carolina Broadband $402 million dollar deal is part of the telecommunication sector total.
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Statewide
, the internet sector had the largest portion of deals with 37.21% of the deals, followed by the computer software industry with 23.26% of the deals. The telecommunications sector was 6th out of the nine industry categories in its share of the total deals with only 4.65% of the deals.
Research Triangle Investments By Company Stage
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In Q2, expansion stage companies accounted for nearly half (40.95%) of all the dollars invested. The late stage category followed with 37.82% of the total.
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In Q2, early stage companies accounted 39.39% of all the financing deals. The expansion stage category followed with 33.33% of the total.
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Statewide
, early stage companies accounted for more than half of the total dollars invested (68%), and held a 46.51% share of the total financing deals in Q2. The expansion stage category followed with 16.18% of the total dollars, and 30.23% of the total deals. Note that Carolina Broadband was an early stage company when it closed on its $402 million.
Investments By North Carolina Region
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For the state as a whole, the Research Triangle region had 33 deals in Q2. Charlotte-based companies reported 8 deals. One Piedmont and one Eastern NC company raised funds, but no Western NC companies reported venture financing for the quarter.
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For the quarter, the Charlotte region claimed 62.29% of the dollars raised, and the Research Triangle claimed 37.42% of the dollars. Both the Piedmont and Eastern NC raised .14% of the statewide total dollars raised.
Investors in Research Triangle-Based Companies
More than 40 investment firms invested in North Carolina-based companies in Q2. Among those funds investing include:
|
Alltel |
Kitty Hawk Capital |
North Carolina-Based Investment Recipients
Forty-one North Carolina-based companies received venture funding during the quarter. Among those companies reporting financing include:
|
Carolina Broadband |
Eplaced.com |
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.