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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (2393)	7/27/2002 10:53:55 AM
From: H James Morris	Read Replies (3) \| Respond to of 89467

Scott, are you still thinking like a venture capitalist? Saturday, July 27, 2002 By JOHN COOK SEATTLE POST-INTELLIGENCER REPORTER Venture capital investments continued their negative spiral in the second quarter as 538 companies raised $5.1 billion. That's a 7 percent drop in investments compared with the prior quarter, according to a report from VentureOne and Ernst & Young. But in a sign that the venture capital bust may have finally hit bottom here, investments in Washington state companies actually increased during the quarter. Twenty-five companies raised $241.5 million in the state, a 59 percent increase over the prior quarter when 16 companies raised $99.5 million. It is also a 26 percent increase over the same period last year. Washington was the third-most active state for venture capital activity, tied with New York. Yet, the $241 million figure is well off the second quarters of 1999 and 2000 when $505 million and $624 million was invested. Health care -- a sector that was largely ignored during the dot-com era -- has become the industry of choice among venture capitalists. The report said health care investments on a national basis increased 42 percent to $1.7 billion. More than one third of venture capital investments now are made in health care companies, a jump of more than 20 percent in the past two years. The Seattle area -- typically known for software and Internet technologies -- has experienced this trend as well. Some of the largest deals last quarter occurred in the health care field, including medical device companies Calypso Medical, which raised $28 million, and Spiration Inc., which raised $22 million. In fact, medical device companies were the biggest benefactors of venture capital in the state as six companies raised $111 million. So far this year, only 55 companies have completed IPOs. In Washington state, only two companies have gone public this year: Zymogenetics Inc. and Quinton Cardiology Systems. Inc. That compares with nine for the same period in 2000. Polaris Venture Partners and Oak Investment Partners were the two most active firms in the state participating in three deals each. seattlepi.nwsource.com