VC Vintage

1999 was a great year for venture capital.
This story first appeared in the June 2000 issue of Entrepreneur. To receive the magazine, click here to subscribe.

Although everyone from Wall Street to the ivy-covered halls of academia knows it, now the numbers confirm it-1999 was a banner year for venture capital. According to two reports in February 2000, venture capital amounts and the number of recipients both significantly increased.

According to Price-waterhouse-Coopers annual Money Tree Survey, 4,006 companies (a 41 percent jump over 1998 figures) together snagged $35.6 billion in VC financing. The other study, conducted by Venture Economics, a division of Newark, New Jersey-based research company Thomson Financial Securities Data, and the National Venture Capital Association, reported that 3,649 firms (up 25.6 percent) together obtained $48.3 billion in investments. Although the results differ, the reports agreed on the percentage that industry activities increased over 1998-about 150 percent.

Venture Capital Chart

Venture capital by region (in millions of dollars)

Region19991998% of increase
Northern California$16,902$5,363215.2
Southern California$3,908$1,907104.9

Venture capital by industry (in millions of dollars)

Industry19991998% of increase
Computer hardware$1,309$550138.1
Computer software & services$7,500$3,83395.7

*Includes companies that would'nt exist without the Internet and don't fit into any other industry sector.

Source: venture Economics and the National Venture Capital Assocaition.

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