Venture capital investment in the Washington region outpaced the national average in the first quarter of 2006, according to data released Tuesday by PricewaterhouseCoopers and the National Venture Capital Association.
In the Washington region, venture capital investments increased by nearly 17 percent, jumping from almost $154 million in the first quarter of 2005 to less than $180 million in the same quarter of 2006.
Growth during the first quarter was steady, according to the PwC/NVCA MoneyTree Report, and there was a 12 percent increase in investments over the same period last year. The MoneyTree report is based on data from Thomson Financial, long considered the industry’s leading source of data on venture capital.
The industry has seen steady growth in the past four years, said Mark Heesen, president of the National Venture Capital Association, which points to a stabilized venture capital market.
“We are experiencing the regular ebb and flow of venture investing and we are truly at our healthiest and most sound investment point since the mid-1990s,” he said.
While specific regionaldata has not yet been released, the first quarter was bolstered by multiple deals among software companies.
Bethesda-based venture firm Novak Biddle Venture Partners invested in four such companies in the first quarter, including Herndon-based Command Information, a company specializing in next-generation Ethernet.
The report comes as the Mid-Atlantic Venture Association prepares for its annual Capital Connection event, the area’s biggest opportunity to link venture capitalists with entrepreneurs.
Companies vying for the region’s investment dollars show particular promise this year, said Julia Spicer, the association’s executive director.
“As a result of [preparing for Capital Connection], we’re seeing a number of the new and emerging companies,” she said. “We’re very pleased with this year’s crop.”
Venture Capital in the Washington Region
» In 2005, venture capitalists pumped more than $965 million into 194 local companies.
» The number of venture capital deals increased from 36 in the first quarter of 2005 to 44 this quarter.
» Nationwide, venture capitalists invested $5.6 billion during the first quarter of 2006.
