Futuredex Releases 2002 Private Capital Data.

Business Editors/High-Tech Writers/Financial Writers

SAN FRANCISCO--(BUSINESS WIRE)--Jan. 27, 2003

Futuredex, Inc. (www.futuredex.com), the private capital network that publishes Futuredex Magazine, today announced the 2002 deal flow figures for U.S. private companies.

The 2002 year end totals brought approximately $17.9 billion of venture capital spread over 1,473 deals, significantly lower than 2001's reported $37 billion and 3,200 deals.

"It's not surprising that we ended the year with private companies receiving much less than what was invested in 2001," said Damir Perge, CEO, Chairman, Editor-in-Chief and Co-Founder of Futuredex, Inc. "Unfortunately, many VCs are too busy trying to get their portfolio companies to profitability than spending the time and money to invest in new deals. What people also have to remember though is that 2001 was a unique environment, resulting in inflated numbers, and that the 2002 numbers are getting back to normal."

The top five states that took the lion's share of venture capital funding were California, Massachusetts, Texas, New Jersey, and New York, respectively. Like 2001, California led in both the number of deals and the amount of financing, accounting for over half of the activity in 2002 with a total of $8.2 billion invested in over 580 deals, averaging $14.8 million per deal. Massachusetts followed with $2.1 billion invested in 179 deals, averaging $12.1 million per deal.

Other areas with high venture activity were Texas, closing with $1.03 billion in 82 deals, averaging $13.1 million per deal. New Jersey closed the year with 48 deals totaling $723.5 million showing the highest per deal average at $15.7 million invested over 48 deals. New York was fifth with a total of $577.8 million in funding over 74 deals, averaging $8.5 million per deal.

Not surprisingly, the top five cities to receive funding during 2002 were all in California, with four in Silicon Valley. San Jose took the lead, closing $883 million, with San Francisco a close second at $737 million. Santa Clara followed with $635 million, San Diego with $582 million and Mountain View with $492 million.

By industry, the Software sector showed the largest volume of venture-backed activity with just over $5 billion invested over 516 deals. The Communications sector followed with $3.34 billion over 190 deals, giving this sector the highest per-deal average at $18.1 million, with Biotech ($2.63 billion), Hardware ($1.99 billion) and the Internet ($1.72 billion) sectors rounding out the top five industries.

The most active private capital investors for US based companies in 2002 were New Enterprise Associates with a reported 56 deals, followed by Intel Capital with 50 deals. Other investors in the top five are Menlo Ventures with 29 deals, and Polaris Venture Partners and Venrock Associates with 28 deals each.

The reported data contained in this release was compiled from various Futuredex sources and do not include foreign and undisclosed deals. All sources are deemed to be reliable and intended to be used as a general reference. The data may, or may not, allow investors to draw meaningful conclusions.

About Futuredex

Launched in October 2001, Futuredex (www.futuredex.com) is a network of private companies, investors, advisors, service providers, and analysts focused on the private capital market. Futuredex provides insight and access to private capital with industry news, networking events and funding sources. Comprised of more than 5,000 members, it represents approximately $32 billion in capital. Futuredex has facilitated over $40 million in investment to more than 30 early-stage companies. Futuredex publishes a monthly magazine distributed with Worth Magazine to 345,000 high net-worth individuals.