The amount of venture capital funding raised in the second quarter was the lowest in two years, according to new investment numbers scheduled for release Friday. The data were compiled by
"Stating the obvious, it wasn't a good quarter," said
Eight Triangle companies raised venture capital in the second quarter, which is OK by recent standards. But the total capital raised was depressed by the fact that there were no big deals in the quarter -- that is, no company raised more than
The Triangle's venture capital market is small enough that a huge deal or two, or the lack of such deals, can cause big fluctuations in the numbers.
The richest deal in the second quarter was the
"It's always been pretty tough to raise venture funding, especially a seed round, in
Still, he added, "I'm a great believer that great companies will always find capital." Last month,
Venture capital investments are worth watching because startup and early-stage companies, especially information technology and biotechnology companies with major growth potential, rely on venture capital dollars to expand sales and marketing efforts or develop new products. The venture capital firms receive an ownership stake in the business in exchange for the infusion of cash they provide.
However, the venture capital data don't provide a complete picture of how much money is being plowed into early-stage companies.
"I'm actually optimistic that we're starting to plant some more seeds and that we are going to see some more engagement from perhaps a wider group of investors," Rose said.
Data compiled by CED found that 150 early-stage Triangle companies attracted
"There is good stuff going on" in the Triangle, Robinette agreed. "You just don't see it in the numbers."
Jones, the venture capitalist, said many of the region's technology startups have a "bootstrap mentality" and choose not to raise money early on. Some of that mindset, he added, could be a product of the difficult climate for raising venture capital.
"It breeds a discipline of needing to bootstrap," he said. "So many folks just put their heads down and do it the old-fashioned way."
Nationwide, venture capital investments rose 34 percent to
That's the largest deal reported since
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