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Venture Capital Still Strong In Hot Markets

Venture and alternative operating capital sourceIn its report that tracks venture capital trends, the Dow Jones VentureSource showed the 2008 first quarter overall number of deals and funds invested was lower than 2007, though up in certain hot markets. VentureSource is Dow Jones’ arm that provides financial data to the venture capital industry. Similar to the real estate market, only certain sectors of investment were down – usually the areas with bad news.

Venture capital poured into the California and the New York regions. The San Francisco area saw a 10% increase in venture capital funding. New York saw the amount of investments more than double from its 2007 level with 52 deals bringing in $602 million. Across the New York state line, New England weathered a lower investment rate, but still ranked as the fourth most active region in the US.

The newer technology area springing up around Washington DC also realized an increase of almost 100% with $241 million invested in 17 venture financing deals.

The Research Triangle area of North Carolina felt the pull-back from investment in life sciences companies with only four investment deals going forward for $19 million. Both the biotech and biopharmaceutical industries showed less investment, some of which can be attributed to the cyclical nature or that industry.

Deals that required late stage financing were also ahead of 2007, possibly signaling a more conservative approach to investment while the economy goes through its recovery from setbacks in the housing markets.

Small businesses looking for venture capital for “clean” industries in the energy, agriculture and specialty chemicals are in a good position to benefit from the strong interest in these areas from the private investment community.

US Business Finance Corp uses its experience in business planning and its connections in the venture capital arena to help small businesses, especially businesses that have an IPO as part of their exit strategy, obtain venture capital financing. Small businesses have depended on US Business Finance Corp for their programs that get them the operating capital they need when they need it and in the way that is best for their companies.

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