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Venture-backed firms thrive in spite of the economy
While venture capitalists retrenched, many of the companies they helped create expanded during the past three years of economic turmoil, according to a study released yesterday.
Venture-backed firms created 600,000 jobs nationwide from January 2001 through December 2003, a net gain of 6.5 percent, said Global Insights, a research firm that conducted the study for the National Venture Capital Association, an industry trade group.
By Associated Press
http://www.boston.com/business/articles/2004/07/20/venture_backed_firms_thrive/
Revenue among the venture-backed companies climbed $212 billion, or 11.6 percent, during those three years, the study found.
The venture-backed growth contrasted with a 2.3 percent payroll decline that wiped out 2.6 million jobs during the same period.
Meanwhile, total sales at all US companies surged by $1.1 trillion, or 6.5 percent.
At the end of 2003, venture-backed companies employed 10.1 million workers and generated combined revenue of $1.8 trillion — just under 10 percent of the national total in the private sector.
The study drew upon a database of nearly 26,500 companies financed by venture capitalists since 1970.
© Copyright 2004 Globe Newspaper Company.
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