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VENTURE CAPITAL INVESTMENT PLUMMETS IN Q1 2009 TO 12 YEAR LOW, ACCORDING TO THE MONEYTREE REPORT

 

All Major Industry Sectors and Stages of Development See Significant Declines

WASHINGTON, April 18, 2009 ? Venture capitalists invested just $3.0 billion in 549

deals in the first quarter of 2009, according to the MoneyTree? Report from

PricewaterhouseCoopers (PwC) and the National Venture Capital Association (NVCA),

based on data provided by Thomson Reuters. Quarterly investment activity was down 47

percent in dollars and 37 percent in deals from the fourth quarter of 2008 when $5.7

billion was invested in 866 deals. The quarter, which saw double digit declines in every

major industry sector, marks the lowest venture investment level since 1997.

 

"It's no surprise that venture capital investing dropped in the first quarter," said Tracy

Lefteroff, global managing partner of the venture capital practice at

PricewaterhouseCoopers LLP. "Given the economic turmoil that began in the third

quarter of 2008 and continued on into 2009, it's not unexpected that the VCs would pause

to assess the impact on their portfolio companies before again looking forward to their

next investment."

 

Mark Heesen, president of the NVCA remarked, "These numbers clearly demonstrate

that the venture capital industry is not immune from the current economic

downturn. Venture capitalists have slowed their investment pace in order to work with

existing companies that are not able to exit the venture portfolio due to the shuttered IPO

window and the weakening acquisitions market. That said, those venture firms that have

the ability to invest at this time are doing so as there remain entrepreneurs with game

changing technologies waiting to be funded. While this drop in investment is significant,

we are not forecasting levels to continue to fall further. We would expect a mild and

steady increase in investment throughout the rest of the year, particularly if the exit

pipeline is allowed to clear."

 

https://www.pwcmoneytree.com

 

 

 

Third Quarter 2008 Venture Capital Report for South Carolina

 

Four companies received over $8,030,000 in venture capital.  The companies were Color Resources $4,250,000,  Dovetail Insurance $2,000,000, Sabal Medical $1,580,000, and SenorTech $200,000.

 

The South Carolina Venture Capital Network (SCIN's), you must put a little SCIN in the game to make a difference to our innovation companies......

 

The SCIN founders began identifying potential members and investors around our state.  Our desire was to ensure that as our innovation/next economy companies needed capital that there not only be capital but business mentors to work with these entrepreneurs.  

 

Our membership has grown year after year and today there are hundreds of individuals that have stepped forward to support, The South Carolina Investor Network, as well as outstanding business leaders from all sectors of business working with our start-up companies.

 

Our membership is open to anyone who has the desire to see our innovation companies grow in South Carolina.  The cost of membership is you agreement to attend the quarterly SCIN meetings, as well as your agreement to support and to work with one or several of our entrepreneurial companies.

 

Our member list and email list are shared with our members only and will not be given out to anyone other than a potential new company seeking capital or network support from our business members.   

 

Your application for membership will be reviewed by the SCIN board of directors, once your application is approved you will be given a security code and password that will give you access to the other members of SCIN's.

 

SCIN regularly brings together professionals from around the state to network and consider current issues in financing and structuring business investments, in managing the start-up, growth and liquidity of business ventures, and in expanding the state's entrepreneurial resources.

 

"SCIN is not a member organization, it is a networking organization. "There is no formal membership, but we typically have between 60 and 100 people at each event."

SCIN began in 1999 with investors, dealmakers, professional advisors and service providers discussing business investment issues and opportunities. Participants of SCIN share a common goal: To facilitate the creation and growth of high-impact companies in South Carolina. They are experienced venture capital and private equity investors, angel investors, business lawyers, accountants, investment bankers and business brokers and other business advisers and service providers.

SCIN began in 1999 with investors, dealmakers, professional advisors and service providers discussing business investment issues and opportunities. Participants of SCIN share a common goal: To facilitate the creation and growth of high-impact companies in South Carolina. They are experienced venture capital and private equity investors, angel investors, business lawyers, accountants, investment bankers and business brokers and other business advisers and service providers.

Since each SCIN participant is in business to identify, consult, fund or service entrepreneurial companies, the network serves as a resource for members to assist each other. SCIN's members also assist entrepreneurs in tapping into the state's resources to facilitate realistic business plans for solid company growth, significant investor returns and favorable impacts on South Carolina.

SCIN's quarterly meetings are held statewide, rotating between SCIN members who volunteer to host the half-day forum. Guests are welcomed to the meetings, space permitting. Members are assessed their share of any cost for the meeting, and SCIN maintains no office or administrative staff, so no dues are assessed.

Meetings are informal, collegial and conversational. Members share information about their business interests and resources, and are encouraged to regularly update other participants, either directly or through SCIN's web site.

 

Venture Capital Companies and Investor Partnerships

 
SC Venture Capital Designated Investor Group
 

Selected by the Authority To Invest Our State's Capital

 

 

The SC Venture Capital Investment Authority has chosen four private equity firms to receive $50 million to invest in young South Carolina companies with the potential to make a big economic impact. The four firms are Azalea Capital of Greenville, which will receive $10 million; Nora-Moseley Partners of Atlanta, which will receive $10 million; Frontier Capital of Charlotte, which will receive $10 million; and Nexus Medical Partners of Boston, which will receive $20 million.

 

 

Azalea Capital, headquartered in Greenville, SC, is a merchant banking firm providing strategic equity capital to privately owned, middle-market firms in the Southeast to facilitate management buyouts, business recapitalizations, and growth plans.

Partnering with management teams in scalable, operating companies with established revenues and cash flows, we provide both financial and human capital to significantly enhance the long-term equity value of the underlying business. Typical investment candidates will have annual revenues ranging from $10 million to $50 million in the focus industries of manufacturing, distribution, business services, consumer products, and healthcare.

Collectively, our Principals have over 100 years combined experience in business and finance, with extensive experience in corporate finance and M&A, human resources, business operations, strategic planning, sales and marketing, and logistics. Our Principals, our Advisory Board, and our investor base, which predominantly consists of CEOs and former CEOs, bring a wealth of knowledge and experience in building businesses and shareholder value across a diverse spectrum of industries.

 

Patrick A. Duncan

#55 Beattie Place
Suite 1500
Greenville, SC 29601
Phone: (864) 235-0201
Fax: (864) 235-1155

http://www.azaleacapital.com

 

Frontier Capital is a private equity firm that provides expansion capital to established, high-growth business service companies.  These companies range from traditional to tech-enabled and deliver a differentiated service to their customers.  They have a proven solution in the marketplace and need capital to accelerate growth, make acquisitions, or generate shareholder liquidity.  The firm is based in Charlotte, NC and invests throughout the Southeast and Mid-Atlantic regions

Frontier makes $5 - $10 million equity investments for growth and partial liquidity.  Investment prospects typically have $5 -$30 million in revenue, strong growth, high gross margins and exceptional management.

 

Richard Maclean

Tompkins Toolworx Building
1900 South Boulevard
Suite 300

Charlotte, NC 28203

Phone: 704.414.2880
Fax: 704.414.2881
http://www.frontierfunds.com

 

 

Nexus Medical Partners is a private equity firm, headquartered in Boston, MA, specializing in making private equity investments in and providing strategic assistance to medical technology and selected life science companies.

Each of the Nexus Principals averages twenty years in the business. In addition to being experienced equity investors, the backgrounds of the Principals include successful careers in medical device and pharmaceutical line management of both established and emerging companies, medical industry business development, Wall Street analysis and legal practice.

Nexus Medical Partners closed its second private equity fund in 2006.

 

John F. Rousseau, Jr.

Managing General Partner

Nexus Medical Partners

One Boston Place, Suite 3630

Boston, MA 02108

Phone:      617-624-8410

Facsimile:  617-624-8416

www.nexusmp.com

 

Noro-Moseley Partners

Founded in 1983, Atlanta based Noro-Moseley Partners (NMP) is one of the largest and most experienced venture capital firms in the southeastern United States. Since its inception, NMP has created five limited partnership funds totaling approximately $580 million in capital and has invested in approximately 160 companies.  

 

In 2000, NMP announced the closing of NMP V, a 320 million venture capital fund, the largest ever in the Southeast. Our mission over the last twenty-three years remains the same: to partner with strong management teams to build companies of significant value.

 

NMP invests in primarily in Southeastern-based, early and established growth stage companies.  This includes companies in various stages of maturity from first round financings to established companies looking for growth capital for acquisitions, recaps or shareholder liquidity. Our industries of interest include technology, healthcare and business services. 

 

We are actively searching for great entrepreneurs with growth plans to create significant value.  NMP will partner with you to realize your long term vision and provide the appropriate financial resources, experience and foresight to help take your company to the next level.

 

Kathy Harris

Partner

Atlanta Office
9 North Parkway Square
4200 Northside Parkway, NW
Atlanta, Georgia
30327-3054
404-233-1966
fax 404-239-9280

www.noromoseley.com

 
other outstanding venture capital companies work with South Carolina Technology Companies.