Software Wrap: Sector Still Going Strong

Largely able to avoid the VC market malaise, computer software companies have managed to snare over $5 billion in private funding thus far in 2001, according to our VentureXpert database.

The biggest winner so far has been Santa Clara, Calif.-based WebGain Inc., which accelerates the creation, integration and continuous improvement of enterprise-class e-business applications, managed to nab over $100 million.

PacketVideo Corp., another computer software company, picked up $100 million in March, despite the flagging economy. The San Diego-based company provides wireless multimedia software and services for mobile applications.

BlueArc Inc. landed $72 million, while OneSecure Inc. and Rearden Steel Technologies Inc. each got $67 million, making the them the third, fourth and fifth software companies to receive the most funding, respectively.

Where You’re From

In terms of geography, Northern California has led the domestic software pack as it’s been home to 132 firms that have received VC injections this year. The New England area saw 67 companies snag cash and coming in third was the New York/Tri-State area with 50 companies receiving money.

Within the sector, communication and networking software companies were able to bring in the most cash, with 57 companies in that niche industry getting funded. E-mail software, on the other hand, was low on the list with only two companies closing deals.

Contact Danielle Fugazy at: Danielle.Fugazy@tfn.com