Monday, January 29, 2007

More on It's Raining Money

In my January 11th posting, It's Raining Money, I told you about the record $215 billion raised by private equity sources to invest in companies across the spectrum. I've got a bit more detail for you on the $25+ billion which was included in that amount for investing in start-ups and early stage companies.

In its weekly newsletter, OCTANe said that "driven by big interest in sectors such as medical technology and alternative energy, venture capital investment across the USA surged to a five-year high of $25.7 billion in 2006. Overall, seed- and first- round deals made up 36% of the deal flow in 2006, and the median round size for 2006 was $7 million, up from $6.5 million in 2005. "

"Southern California as a whole surpassed the Northeast as the second leading investment region in the nation, behind the Bay Area. Clearly, more "minds and money" are flowing to SoCal, with media, biotech, medical devices and communication strengths. What's more, the region is hot with $2 billion+ university R&D - something OCTANe will highlight at the Doing Business with UC program next month. "

OCTANe's source for its information was the The MoneyTree™ Report by PricewaterhouseCoopers and the National Venture Capital Association based on data from Thomson Financial.

Not every company can attract private equity. In some of those situations, finding the right lender might be the right solution. Read "Matchmaking for Business Loans" and give me a call!

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