Record amounts of venture capital gushed into businesses in the first quarter of 2000.
A PricewaterhouseCoopers Money Tree Survey released today shows $17.2 billion was invested in entrepreneurial ventures in the first quarter, quadrupling the $4.3 billion recorded during the same time in 1999. Tech-based companies racked up $16 billion of these investments, accounting for 93 percent of the total.
The number of companies receiving funding also increased: 1,423 compared with 732 companies in last year's first quarter.
Venture capitalists gave businesses an average of $12.1 million, versus $5.9 million a year ago. While experts say returns on investments for formative-stage companies won't come around for another year or two, they still received more funding than established firms, grabbing $7.7 billion.
Venture Capital Investements (in millions of dollars)
Sector 1995 2000
Internet-related companies $ 12 $ 10,761
Business-services industry 9 3,306
New Media 20 1,030
Networking and equipment industry 4 11,047
Telecommunications industry 14 53,005
Retailing and distribution industry 133 901
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