Venture capitalists invested more than $1 billion in Washington-area companies in 2006, according to a report released Tuesday.
The region scored its biggest year since 2002, when the investment world took a hit following the bursting of the Internet bubble.
Last year, venture capitalists invested $1.12 billion in 177 local companies, according to figures from The MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association. Software, biotechnology and telecommunications jockeyed for the top three spots throughout the year.
“We have a strong legacy sector in telecommunications and technology in this region, and that will continue to be opportunistically a great investment space,” Julia Spicer, executive director of the Mid-Atlantic Venture Association, said in a recent interview with The Examiner. “In the biotechnology space, [there have been good investments], but it’s younger.”
The report also released fourth quarter-specific numbers for 2006, showing software at the top with 14 deals and $29 million in investments. A total of $137.8 million was invested in 48 companies during the fourth quarter.
Fairfax County continued to dominate the venture capital market in the region during the fourth quarter, capturing 13 of those 48 deals and $28.3 million. Montgomery County came in second with six deals and $13.8 million.
Nationally, venture capitalists invested $25.5 billion in 3,416 deals, a 10 percent increase in deals and a 12 percent increase in dollar value over 2005.
Biotech saw significant growth on a national scale, while software investments remained relatively flat.
