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VENTURE CAPITAL INVESTMENTS

 

Estimated Amount Invested
($ Billions)

Estimated  #  of Investments

2007

29.4

3,813

2006

26.5

3,608

2005

23.0

3,131

2004

22.4

3,073

2003

19.7

2,920

2002

21.9

3,092

2001

40.6

4,475

2000

105.1

7,909

1999

54.5

5,605

1998

21.3

3,695

1997

14.8

3,185

1996

11.5

2,612

1995

7.6

1,874

1994

5.0

992

1993

4.5

969

1992

4.0

968

1991

3.3

821

1990

2.3

1,177

1989

3.4

1,464

1988

3.8

1,530

1987

4.0

1,740

1986

3.2

1,512

1985

2.7

1,388

 

Source: Various sources including, VentureSource, Venture Capital Journal, Venture Economics, Coopers & Lybrand (PricewaterhouseCoopers) - survey of venture capital firms and the PricewaterhouseCoopers / Venture One - joint venture capital survey.

THE ANGEL INVESTOR MARKET IN 2004:

Market Size
The angel investor market has shown signs of a sustainable recovery in 2004, with total investments of $22.5 billion (total 2003 investments $18.1 billion), according to the Center forVenture Research at the University of New Hampshire. A total of 48,000 entrepreneurial ventures received angel funding in 2004, a 24 percent increase from 2003. The number of active investors in 2004 was 225,000 individuals, an increase of 2.5 percent from 2003, with an average of 4 to 5 investors joining forces to fund an entrepreneurial start-up. This continued modest rise in total investments is encouraging.

Sector Analysis
Software garnered the largest angel investments, with 22 percent of total angel investments in 2004, followed by healthcare services/medical devices and equipment, with a 16 percent share of angel investments. The remaining investments were approximately equally weighted across high tech sectors, with each having about 10 percent of the total deals. This market level sector diversification indicates a robust investment pattern and provides a foundation for reasonable growth in the market. Since the angel market is essentially the spawning grounds for the next wave of high growth investments, this sector diversification provides an indication of investment opportunities that will be available for later stage institutional investors.

Sector / Deals:  Software-22%;  Health-16%;  Biotech-10%;  IT-8%;  Services-8%; Financial Services-8%; Retail-7%;  Telecom-6%.      

 

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