Venture Capital Report: 1997

1997 proved to be another successful year for entrepreneurs and investors in the Research Triangle region. Respondents to CED's annual investment survey reported $167,430,000 in venture capital investments. This represents a 41% increase over the 1996 tot al and is the highest amount reported to date. Forty-six individual companies reported receipt of investments -- the same number as in 1996.

Begun in 1990, the CED annual survey is an indicator of availability of capital and of entrepreneurial activity. It focuses on investments and excludes LBO, MBO and acquisition transactions. The survey measures the amount of venture capital invested in Triangle area companies as reported by Triangle investors and entrepreneurs. The survey is performed in conjunction with a statewide venture investment survey conducted by Coopers & Lybrand, LLP.

Among the companies receiving venture capital investment in 1997 were:

3D Ultrasound
Accipter, Inc.
Aerial Images
Analytika, Inc.
Cedalion Education
DentalCare Partners, Inc.
Engineous Software
EPIGenisis Pharmaceuticals, inc.
Ganymede Software
HAHT Software, Inc.
Inspire Pharmaceuticals
IntraSoft, Inc.
Knowledge Base Marketing
Lambda Technologies, Inc.
Maize Genetic Resources
Medacoustics, Inc.

MicroMass Communications, Inc.
Newtonian Software
Novum CRC
Oxidyn
Promedex, Inc.
ReadyCom, Inc.
Relativity Technologies
SciQuest, Inc.
Secant Network Technologies, Inc.
Sedona Healthcare Group
Southern Assisted Living, Inc.
Spectrasite
Trimeris, Inc.
United Emergency Services
Xanthon, Inc.

Research Triangle Venture Investing Facts:

  • A total of $167,430,000 was invested in 46 Triangle companies, a 41% increase over the 1996 total of $118,513,163

  • Software & Information companies were the leaders in dollar amount and number of deals in 1997, receiving 23 deals and 42% ($70,120,000) of the total invested in the Triangle.

  • Of the 54 different investors, 63% were located outside North Carolina

  • The average financing deal was $3,640,000. The median deal was $2,600,000.

  • Although it had only one deal, the Telecommunications industry still had the fifth largest investment total overall, and the fourth largest individual deal.

  • The top 5 deals comprised 34% of the total invested in the Triangle

The top 5 deals by company and/or industry are:

1. HAHT Software: Software & Information

$14,400,000

2. Inspire Pharmaceuticals: Life Sciences

$13,000,000

3. Medacoustics, Inc.: Life Sciences

$10,570,000

4. Spectrasite: Telecommunications

$10,000,000

5. A Life Science Company

$9,700,000