Venture Capital Reports: 2000: Third Quarter
OverviewSummary Statistics
Research Triangle Investments By Deal Size
Top Ten Research Triangle Recipient Companies
Research Triangle Investments By Industry Category
Research Triangle Investments By Company Stage
Investments By North Carolina Region
Investors in Research Triangle-Based Companies
North Carolina-Based Investment Recipients
Research Methodology
A total of $335.28 million was invested in 38 Research Triangle-based companies in Q3 of 2000. Throughout North Carolina, a total of 49 companies obtained $456.29 million dollars.
According to various sources, Research Triangle-area companies participated in at least 15 mergers and acquisitions worth greater than $609.2 million in Q3. (The actual total is likely significantly higher as the majority of deals did not offer public details on the transaction amounts.)
This quarterly report is based on information available as of October 31, 2000. Additional information or changes received after that date are reflected in the Year to Date report; however, once posted, quarterly reports are not revisited.
The following are summary statistics for CED's Q3 2000 Research Triangle Venture Investment Report findings:
Research Triangle Summary
Statistics
With 38 investments made in Triangle companies, the
number of deals in Q3 increased by 72.72% from the 22
deals made in Q3 of 1999.
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The average Q3 investment was $8.82 million (vs. $5.12 million in the same period in 1999).
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The median Q3 investment was $3.75 million (vs. $2.35 million in the same period in 1999).
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Q3 individual investments ranged from a total of $75 million to $250,000. (vs. $18.6 million to $300,000 during the same period in 1999)
With 49 investments made in North Carolina companies, the number of deals in Q3 increased by 63.33% from the 30 deals made in Q3 1999.
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The average Q3 investment was $9.31 million (vs. $6.39 million in the same period in 1999).
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The median Q3 investment was $3.5 million (vs. $2.35 million in the same period in 1999).
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Q3 individual investments ranged from a total of $75 million to $250,000. (vs. $49.23 million to $110,000 during the same period in 1999)
Research Triangle Investments By Deal Size
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In Q3, the Research Triangle region recorded four investments at greater than $20 million for 49.21% of the total dollars raised; 18 companies raised at least $5 million for 89.6% of the total dollars raised.
Top Ten Research Triangle Recipient Companies
At least 38 Research Triangle-based companies received funding in Q3. The *top ten recipient companies for the period were as follows:
|
Fiderus |
$75.0 |
|
HomeDirector |
$45.0 million |
|
a4 health systems |
$25.0 million |
|
Micell Technologies, Inc. |
$20.0 million |
|
Koz Inc. |
$16.2 million |
|
Blue 292 |
$15.3 million |
|
InterAdNet |
$15.0 million |
|
Hatteras Networks |
$14.0 million |
|
Pozen |
$11.1 million |
|
AlphaVax |
$11.0 million |
|
*(For a total list, see below.) |
|
Forty-nine companies based in the state of North Carolina received funding in Q3. The statewide *top ten recipient companies for the period were as follows:
|
Fiderus |
RTP |
$75.0 million |
|
HomeDirector |
Morrisville |
$45.0 million |
|
Endeavor |
Wilmington |
$36.06 million |
|
Digital Optics |
Charlotte |
$35.0 million |
|
Targacept |
Winston-Salem |
$30.4 million |
|
a4 health systems |
Cary |
$25.0 million |
|
Micell Technologies, Inc. |
Durham |
$20.0 million |
|
Koz Inc. |
Durham |
$16.2 million |
|
Blue 292 |
Durham |
$15.3 million |
|
InterAdNet |
Cary |
$15.0 million |
|
*(For a total list, see below.) |
||
Research Triangle Investments By Industry Category
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In the Research Triangle, the computer software sector garnered 27.32% of the dollars raised, followed by the internet sector with 22.76% of the total financing.
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The Research Triangle internet industry had 34.21% of the total deals in Q3, followed by the computer software sector with 23.68% of the deals.
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Statewide
, the software sector garnered 22.1% of the total dollars invested in Q3, followed by the life science sector with 21.09% and the internet sector with 18.39% of the total dollars raised.
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Statewide
, the internet sector had the largest portion of deals with 32.65% of the deals, followed by the computer software industry with 24.49% and the life science sector with 18.37% of the deals in the third quarter.
Research Triangle Investments By Company Stage
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In Q3, early stage companies accounted for over half (57.77%) of all the dollars invested. The expansion stage category followed with 23.5% of the total.
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In Q3, early stage companies accounted for 52.63% of all the financing deals. The expansion and seed stage categories followed with each sector garnering 18.42% of the total.
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Statewide
, early stage companies accounted for almost half of the total dollars invested (45.09%), and held a 48.98% share of the total financing deals in Q3. The expansion stage category had 26.04% of the total dollars raised and accounted for 18.37% of the deals. Late stage companies were 20.46% of the dollars invested and 10.2% of the deals, while seed stage companies accounted for 8.42% of the dollars and 22.45% of the deals.
Investments By North Carolina Region
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For the state as a whole, the Research Triangle region had 38 deals in Q3. Charlotte-based companies reported 8 deals. Two Piedmont and one Eastern NC companies raised funds, but no Western NC companies reported venture financing for the quarter.
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For the quarter, the Research Triangle claimed 73.48% of the dollars raised, and the Charlotte region claimed 11.74% of the dollars. Eastern North Carolina raised 7.9% of the total dollars, and the Piedmont region claimed 6.88% of the statewide total dollars raised.
Investors in Research Triangle-Based Companies
More than 75 investment firms, strategic investors, and individual investors invested in North Carolina-based companies in Q3. Among those investing include:
|
ADVA AG |
ING Furman Selz Investments |
North Carolina-Based Investment Recipients
Forty-nine North Carolina-based companies received venture funding during the quarter. Some of the companies reporting financing include:
|
a4 health systems |
KeyNetica |
CED's survey figures differ from other organizations that report venture investments nation-wide due to a different reporting methodology. CED collects and verifies investment information for publication from a variety of published sources such as NVCA reports, PricewaterhouseCoopers MoneyTree© reports, and other business publications; and by directly surveying regional venture capitalists and local entrepreneurs. Vigorous efforts are made to reconcile discrepancies in all information; however, where differences occur, CED relies on direct information from the company and/or its investors about the specific amounts and closing details.