Funds Go To Older Tech Firms
Heavy Investments

Technology companies receiving the most venture-capital funds in
the second quarter include:


>> Vonage, a provider of voice-over-IP phone services, $200
million


>> Entrisphere, a provider of multiservice broadband access-loop networks
for telecom carriers, $75 million


>> Caspian Networks, a maker of flow-state routers for IP traffic,
$55 million


>> Omniture, a developer of Web-site analytics software, $40
million

Data: Ernst & Young/Dow Jones Venture One
|
|

|

|
Venture-capital investments in technology companies in the second quarter dropped significantly from last year, with companies that have some history faring better than market newcomers
Three hundred deals raised nearly $2.8 billion, down 18% from nearly $3.4 billion raised in 357 deals in last year's second quarter, according to the Ernst & Young/ Dow Jones VentureOne Venture Capital Report issued last week.
Much of the recent investments went into companies that have been around for several years. The amount invested in later-stage companies in all categories of business increased 23% in the second quarter to $2.98 billion, up from $2.4 billion invested in last year's second quarter, and the number of deals rose from 193 to 210. All but two of the 10 companies receiving the largest investments were later-stage ventures.
IT companies represented many of these later-stage investments, says John Gabbert, VP of worldwide research for VentureOne. In fact, five of the top 10 were later-stage technology companies.
We welcome your comments on this topic on our social media channels, or
[contact us directly] with questions about the site.
More Insights