Firms Closer to a Payoff Get Venture Capital
"Venture capitalists, often the financiers for nascent businesses, in 2005 favored more mature "late-stage" companies in Colorado's biotechnology, technology and software sectors, according to a venture-capital survey to be released today.
The MoneyTree Survey, which largely mirrors another venture- capital survey released Monday by accounting firm Ernst & Young, identified 75 Colorado deals totaling $612 million in 2005, up from $413 million in 2004.
Tuesday's report, released by accounting giant PricewaterhouseCoopers, showed 16 deals for $115 million during the fourth quarter, up from $93 million during 2004's fourth quarter.
Despite the surge, 2005's figures are still below those in 2003, when Colorado companies raised $633 million, the largest amount since 2001's $1.3 billion.
The biggest beneficiaries in 2005 were late-stage companies.
Venture capitalists preferred businesses they believed were poised to deliver returns sooner rather than later, said Matt Kosmicki, technology partner at PricewaterhouseCoopers in Denver.
He noted that Colorado has emerged as a biotech hub, as current or former workers at the University of Colorado Health Sciences Center on the Fitzsimons campus in Aurora have gone on to start companies.
It's the same thing for the technology sector, where workers have branched from established firms to launch their own. "
The MoneyTree Survey, which largely mirrors another venture- capital survey released Monday by accounting firm Ernst & Young, identified 75 Colorado deals totaling $612 million in 2005, up from $413 million in 2004.
Tuesday's report, released by accounting giant PricewaterhouseCoopers, showed 16 deals for $115 million during the fourth quarter, up from $93 million during 2004's fourth quarter.
Despite the surge, 2005's figures are still below those in 2003, when Colorado companies raised $633 million, the largest amount since 2001's $1.3 billion.
The biggest beneficiaries in 2005 were late-stage companies.
Venture capitalists preferred businesses they believed were poised to deliver returns sooner rather than later, said Matt Kosmicki, technology partner at PricewaterhouseCoopers in Denver.
He noted that Colorado has emerged as a biotech hub, as current or former workers at the University of Colorado Health Sciences Center on the Fitzsimons campus in Aurora have gone on to start companies.
It's the same thing for the technology sector, where workers have branched from established firms to launch their own. "
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