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InvestmentNews: NYC Venture Capital Up 18%, Report Says

NYC venture capital up 18%, report says

By Pamela Appea

January 24, 2007 2:34 pm ET

Venture capitalists invested $2 billion in 249 companies in the New York area last year, up 18% from the prior year and marking the highest level of VC funding since 2001, according to a new quarterly industry survey, according to sister publication Crain’s New York Business.

New York maintained its third-place ranking among U.S. deals since 2002, behind Silicon Valley with $9.2 billion in 1,108 deals and New England with $3 billion in 413 deals, according to the MoneyTree Survey by PricewaterhouseCoopers, Thomson Venture Economics and the National Venture Capital Association.

“New York Metro continues to demonstrate confidence in the software and biotechnology industries-the leading industries in 2006,” said David Silverman, managing partner for venture capital at PricewaterhouseCoopers, in a statement.

In the New York metro area, Edison, N.J.’s Home Décor Products Inc. got the single largest investment of $65 million. Manhattan-based telecom firm Cellfish Media received the second-largest infusion of $50 million.

Software companies received the most money, with $440 million going to 57 companies. Media and entertainment came in close second with $162 million funding 37 deals. Area biotech companies received $306 million in 32 deals.

Expansion-stage companies in the area received $803 million in 102 deals, marking the largest number of deals since 2003. Later-stage firms got $678 million in 63 deals.

Nationwide, venture capitalists invested a record $25.5 billion in 3,416 deals in 2006, up 12% from the $21.7 billion in 2005.