Press Release
Contact: Robert Albright |
Phone: 919-549-7500 ext.123 |
CED Survey: VCs Optimistic About Economy, Investment Scene
Results Indicate Favorable Conditions for CED's Venture 2004 Presenters
April 13, 2004, Research Triangle Park, NC - The Council for Entrepreneurial Development (CED) today announced results from its recent survey of venture investors, which asked about investment priorities, portfolio performance, as well as metrics used to gauge the vibrancy of various innovation-based regions.
CED presents the survey's findings in anticipation of its Venture conference, scheduled for April 27-28 at The Friday Center in Chapel Hill.
“We hope the survey results bode well for Venture 2004 presenters and for all North Carolina innovation companies,” said CED President Monica Doss. “Given the challenging funding environment lately, particularly for early-stage companies, we're very pleased to learn that investors are optimistic about the prospects for new companies on the horizon.”
Among the survey's most significant findings:
- 86 percent of survey respondents said economic conditions had been more favorable in 1Q 2004, compared to 1Q 2003. 82 percent of VCs surveyed said their portfolio companies were stronger now compared to this time last year.
- 55 percent of VCs said they would invest more money in 2004 compared to 2003, and 50 percent of responding VCs said they would close a greater number deals in 2004 compared to 2003.
- Almost half - 45 percent of survey respondents - said they planned to make significant investments in new companies this year (27 percent said they planned to invest in 2 new companies for every one follow-on round investment, while 18 percent said they planned to invest in 3 new companies for every one follow-on round investment).
- A critical mass of serial entrepreneurs was the leading factor venture capitalists consider important when determining a region's investment potential. In terms of the vibrancy of an innovation region, VCs cited successful exits and favorable business climate/cooperative local government as their two most widely used metrics.
- Survey respondents outside of North Carolina said the top three regions in which they pursue deals were Boston, Silicon Valley and San Diego (in ranked order). Other regions placing high on VCs radar screens were Austin, Seattle, Research Triangle Park and Atlanta. When including N.C.-based respondents in the total data, Research Triangle Park ranked as the most desirable innovation-based region.
Note about survey methodology. CED sent the survey to leading investors from across the country, and 74 venture capitalists responded. Approximately 25 percent of survey respondents came from North Carolina, and approximately 20 percent came from investor-rich regions Boston and San Francisco. Respondents also included investors from such other cities as New York, Washington D.C., Atlanta and Birmingham.
About Venture 2004: CED's 21st annual Venture 2004 - Where great minds meet smart money - is scheduled for April 27-28 at The Friday Center in Chapel Hill, NC. The conference is presented with support from UNC Kenan-Flagler Business School and The National Venture Capital Association. Last year's conference, Venture 2003, drew a crowd of more than 800 investors, service professionals, entrepreneurs and others involved in the entrepreneurial funding process from throughout the United States. For more information on presenting companies, sponsorship or general registration, visit www.cednc.org/venture.
About CED: The Council for Entrepreneurial Development, located in Research Triangle Park, NC, is a private, non-profit organization formed in 1984 to stimulate the creation and growth of high-impact companies in the greater Research Triangle region. CED provides education, mentoring and capital formation resources to new and existing high-growth entrepreneurs through annual conferences, seminars, workshops and monthly programs on entrepreneurial management and finance. CED, which celebrates its 20th anniversary in 2004, is the largest entrepreneurial support organization in the nation with more than 3,500 members representing 1,000 entrepreneurial companies, financiers and professional firms. www.cednc.org
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