Venture Capital Investment Continues Strong Growth in Region
4/23/07 – For the third straight quarter, the Southern California region was second only to Silicon Valley in terms of venture capital, with investment growing 23 percent over last year, according to the Dow Jones VentureOne and Ernst & Young Quarterly Venture Capital Report. The report says the region saw 66 deals during the first three months of the year, resulting in $1.1 billion dollars invested—the first time Southern California has topped the $1 billion mark in a quarter since 2000.
According to the Los Angeles Times, information technology firms based in the Los Angeles area are a particularly strong driving factor, along with healthcare and biotechnology in the San Diego area.
Comparatively, New England, which was the perennial second-place finisher until last year, was just behind Southern California with $927.9 million in investment. However, New England was the second most active region in terms of deal flow, with 73 during the quarter. Not surprisingly, the San Francisco Bay Area saw the most investment, with $2.2 billion invested in 189 deals.
Dow Jones VentureOne and Ernst & Young LLP Quarterly Venture Capital Report
Los Angeles Times article on the report – Venture capital upswing is seen
