Utah Venture Capital investments down – $30 million in capital raised in 3rd quarter – Mature companies beat out new ones for VC cash

Utah companies captured $30 million in venture capital money in this year’s third quarter, less than half of the $64 million raised during the same three months in 2004, according to the MoneyTree Survey by PricewaterhouseCoopers.

Five Utah companies received funding, including Control 4 Corp., which led the quarter in a $15 million deal. The Salt Lake-based company, which specializes in home automation products, said the money will be used to develop and sell its products.

Other companies receiving funding included Orem-based CanyonBridge Inc. at $8.4 million; Draper-based Sunforce Technologies at $3.7 million; Orem-based Alianza Global Communication Services at $2.4 million and Salt Lake-based Cognetix Inc. at $679,800.

Joe Strain, manager of PricewaterhouseCoopers’ Salt Lake office, said while third quarter investments were down, deals for the first nine months of 2005 already surpass those of last year.

"If you just take third quarter it looks like things were in a downturn, but that’s not at all the case," Strain said. "The nine-month period this year is ahead of the full-year period of any of the past four years."

Utah investments reached $223 million from January through September. In contrast, investments in all of 2004 totaled $188 million.

Nationally, venture capital investments were $5.3 billion in this year’s third quarter, up from $4.6 billion last year.

By Dave Anderton
Deseret Morning News

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Mature companies beat out new ones for VC cash

By Benjamin J. Romano

Seattle Times business reporter

Venture investors put more money behind mature companies in the third quarter, carrying firms in their portfolios that might have been candidates for initial public offerings in years past.

The trend toward later-stage investments was also seen in the life-sciences sector, which captured 30 percent of the $5.3 billion in third-quarter venture funding, according to the MoneyTree survey, being released today by PricewaterhouseCoopers, Thomson Venture Economics and the National Venture Capital Association (NVCA).

The third-quarter data follow a similar report Monday from Ernst & Young and VentureOne.

In the MoneyTree survey, Northwest companies attracted $226.9 million in venture funding during the period, putting the region sixth in the nation behind Silicon Valley, New England, the Southeast, Los Angeles/Orange County and metropolitan New York.

Washington had 25 deals in the quarter, worth $164.7 million.

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