Arizona venture investing gets second-quarter boost

Arizona venture capital investing may be on the rise--or, at least, starting to return to historical levels.

The evidence for this sea change comes from a MoneyTree survey conducted by PricewaterhouseCoopers, Thomson Venture Economics, and the National Venture Capital Association. According to the survey, five Valley companies secured a total of $13.7 million in venture funding during the second quarter 2003, a near 22 percent increase from the $11.25 million received in the first quarter. The first quarter of this year was one of the worst in history for Arizona venture investment.

The increase comes on the heels of a June surge in nationwide biotechnology investment. The national upswing has suggested the possibility that the sector will outperform last year, and has fueled cautious optimism that interest in the industry is on the rise among investors and venture capitalists.

Andy Coumides, a partner with PricewaterhouseCoopers-Phoenix office, told the Arizona Republic that the increases point to a return to normal activity, and not necessarily an upswing. "Nationally, and as well here in Arizona, the venture capital funding is starting to level off from its decline, and that's encouraging."

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For more information:

"Arizona venture investing climbs," Arizona Republic, 7/29/2003

National biotech investing surges in June