Venture Capital: Startup financing rebounds in Washington State

If you were an entrepreneur seeking a first round of venture capital financing last year, Washington state was the place to be.

Thirty startup companies raised money for the first time last year in the state, a 66 percent increase over 2003 and a growth rate that surpassed every other major technology hub in the country, according to a report released this week by VentureOne and Ernst & Young.

Furthermore, only four venture-backed companies in the state closed their doors last year. That means for every venture- backed company that folded, about seven new companies received startup capital.

"That bodes well," said VentureOne’s Matt Garlick, who worked on the annual venture capital Insight Study.

Although he could not pinpoint a specific reason for the state’s strong showing, Garlick said other regions did not fare as well.

By JOHN COOK
SEATTLE POST-INTELLIGENCER REPORTER

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