US Q2 VC investments figs released

US venture capital investment figures for Q2 2004 have been released as part of the MoneyTree survey by PricewaterhouseCoopers, Thomson Venture Economics and the National Venture Capital Association in the US. The steady upward trend in US venture capital continued in the second quarter of the year with investments of $5.6bn going into 761 companies. This figure compares to $5.0bn invested in the first quarter of 2004 and $5.4bn in the fourth quarter of 2003.

A total of 229 early stage companies were funded in Q2 2004, the highest number since Q2 2002 capturing $1.17bn or 21% of all venture capital for the period. Expansion stage funding reached $2.8bn in Q2 2004 or 50% of all investing, compared to $2.6bn and 51% in Q1 2004.

Later stage funding was flat. Investments in Q2 2004 were $1.6bn or 28% of all investing versus $1.6bn and 31% of all investing last quarter.

Jesse Reyes, vice president at Thomson Venture Economics, said: “The increase in early stage fundings is a promising sign that older companies already in portfolios are now healthier and may be self-sustaining. And, new investment can be focused on emerging companies and technologies. Increased valuations across the board are probably linked to better equity markets in the first half of the year, and robust companies in the investment pipeline.”