Private Equity: … while across the pond

PricewaterhouseCoopers’ Money Tree survey of US venture capital investment across all industries during the first quarter of 2000 found that the figure invested exceeded $17 billion (EURO18.7 billion). This far exceeds the previous quarterly record set in the fourth quarter of 1999 at $14.69 billion. While the strong flow of investment at the end of 1999 has obviously continued into 2000, a stark contrast is noted when comparing the first quarter figures in 1999, which saw venture capital investment stand at just $4.31 billion.

Of the first quarter 2000 investment figure a staggering $16 billion out of the $17 billion total was invested in technology-based companies, including Internet companies, which absorbed $10.8 billion of total technology disbursements. The majority of Internet investments were made in the B2B rather than the B2C space.

The number of companies that received funding in the first quarter of 2000 increased by 94 per cent to 1,423 compared with 732 companies in the first quarter 1998. Average funding per company increased 105 per cent to $12.1 million, compared with $5.89 million in the first quarter of 1998.