2001 meltdown strengthened VC survivors, Larta says. (Technology).WITH few exceptions, headlines regarding venture capital activity in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, have been dire for some time. But one study finds that the local VC community, while battered, has become more resolute as a result of last year's buffeting. That's the conclusion of Larta, the local technology business think tank on the campus of USC An abbreviation for U.S. Code. . The group's recently released Sand Dollar Report declares that the region's executive talent has matured, investors are more in tune with the area's resources, and networks created during the dot-coin craze have endured and are strengthening. The work of the VC community has created a healthy environment for nurturing entrepreneurism and investment in it, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the study. "Look at where it was before the spike happened and then look at where we are now," said Victor Hwang, chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of Larta. "If you consider what's happened between 1994 and 2001, there's a lot more going on now than there was before." According to the report, which is based on The MoneyTree Survey conducted by PricewaterhouseCoopers, Venture Economics and the National Venture Capital Association, the number of venture investments in Southern California fell 54 percent in 2001 from the year-earlier period. The value of those deals declined 73 percent in the same period. The long view, however, shows a 119 percent gain in the number of deals in 2001 compared to 1995, with a 284 percent increase in valuation. Venture investment in Southern California (from Santa Barbara Santa Barbara (săn'tə bär`brə, –bərə), city (1990 pop. 85,571), seat of Santa Barbara co., S Calif., on the Pacific Ocean; inc. 1850. to San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. counties) increased from $127 million in 1994 to $5.6 billion in 2000. Investing plummeted last year to $1.5 billion. Klaus Koch, principal at West L.A. venture capital firm Kline Hawkes & Co., said the VC community is a tougher bunch having survived 2001. Weaker companies have been weeded out because they spent their money on overpriced o·ver·price tr.v. o·ver·priced, o·ver·pric·ing, o·ver·pric·es To put too high a price or value on. overpriced Adjective costing more than it is thought to be worth Adj. investments with low, if any, returns. "I certainly believe (investment) levels going forward will be above '94, '95 levels," Koch said. "It would not surprise me, however, if levels went down from where they are today. Over the next five years, you'll still see firms have trouble raising money," Koch said. "But there's plenty of opportunity here." |
|
||||||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion