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VC Vintage

1999 was a great year for venture capital.
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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
Northwest$2,005$647210
Mid-Atlantic$4,015$1,430180.8
Southeast$3,666$1,438154.9
Southern California$3,908$1,907104.9


Venture capital by industry (in millions of dollars)

Industry19991998% of increase
Internet-specific*$18,757$3,285471
Communications$8,366$3,318152.1
Computer hardware$1,309$550138.1
Semiconductor/electronics$1,740$827110.4
Computer software & services$7,500$3,83395.7
Consumer-related$1,712$108458

*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.

Edition: May 2017

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