To: kemble s. matter who wrote (156787 ) 5/6/2000 7:25:00 PM From: calgal Read Replies (1) | Respond to of 176387
Texas a capital for ventures Local firms say state on pace to pass leaders in dollars investeddallasnews.com Kemble: OT, but still interesting since Mikey is in Austin. :)Leigh 05/05/2000 By Leah Beth Ward / The Dallas Morning News Texas raked in more than $1.5 billion in venture capital during the first quarter, a 258 percent increase compared with the same period last year, according to a survey by a venture fund trade group. Venture funds flowed into Texas at a faster percentage rate than in Massachusetts - a longtime leader in attracting the high-risk financing - but slower than in California, New York, Georgia and Illinois, according to the 370-member National Venture Capital Association of Arlington, Va. The survey was released Thursday. In total dollars invested, Texas still trails California, Massachusetts and New York, the survey shows. Some local venture firms think it's only a matter of time before Texas edges out New York and Massachusetts. Terry Rock of Centerpoint Ventures in Dallas goes even further to say that Dallas will soon be No. 2 to Silicon Valley, besting in-state rival Austin. The telecommunications cluster, plus what Mr. Rock calls "genetic talent" from such corporate giants as Texas Instruments Inc. makes Dallas more fertile, he said. "They are lacking in the executive talent - the people who really know how to run companies," Mr. Rock said of Austin. The latest survey did not compare Dallas and Austin. But a similar survey by PricewaterhouseCoopers put Austin decidedly ahead of Dallas for total venture capital funds attracted in 1999: $844 million vs. $440 million. In the United States during the first quarter, the National Venture Capital Association survey found a record $22.7 billion was invested in companies by venture capitalists, up from $6.2 billion in the first quarter last year. Venture capitalists are focusing investments on companies in earlier stages of their development, according to the survey. At $17 billion, Internet-related companies received more money than any other sector. In Texas, information technology by far received the bulk of the venture funding, with a total of $1.4 billion. By region, the Venture Capital Association ranked the Southwest fifth for the quarter, with $1.6 billion, behind Northern California, the Northeast, the Southeast and Southern California. Some venture capitalists consider the PricewaterhouseCoopers survey more precise because it defines venture capital as the exchange of money for equity. The Venture Capital Association takes a broader measure of venture capital by including buyouts, discounts on equipment and warrants.