Jones Lang LaSalle


New York venture capital funding up 12%: report
by Amanda Fung

Venture capital investments in New York metro area companies increased 12% to $348 million in the first quarter from a year earlier, according to a national survey released on Tuesday.
Fifty-eight New York companies received venture money last quarter, according to the MoneyTree report by PricewaterhouseCoopers and the National Venture Capital Association.
A little over a quarter of the New York funding, $90 million, went to nine companies in the life sciences industry, while two software companies received $22 million. The same amount went to five media and entertainment companies.

It was the first time since the third quarter 2005 that venture capitalists invested in this industry. Four media and entertainment companies received $19 million during that period.
"While it is still too early to tell, if the first quarter is a positive indication, as deal flow is up," said David Silverman, managing partner of PwC's venture capital practice, in a statement. "We are seeing renewed interest in industries which have been considerably quiet during the past few quarters."

The regional results mirror national venture capital activity. Nationwide, venture capitalists invested $5.6 billion in 761 deals last quarter also up 12% from last year, the report said.
Nationally, funding in the media and entertainment industry reached a four-year high, up 80% over the prior quarter, with $396 million going toward 57 deals. Companies focused on delivering content via the Internet accounted for approximately half of the total invested and number of deals.

©2006 Crain Communications Inc.