VC investment slows - South Florida Business Journal:

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million in Florida companies duringthis year's thir d quarter, the lowest dollar volumde in the state since 1999's first according to a survey by PricewaterhouseCoopers. survey, compilex by the accounting and consulting firm and venture capital consultanVenture One, showed 13 Florida companiees received venture capital during the recent That averaged out to $6.9 million per The recent quarter's statewide dollar total was considerablgy smaller than in this year's seconrd quarter, which had 12 VC deals totalinf $260.7 million. The Money Tree survey for 2000's thirf quarter showed 23 Florida investmentstotalin $542.8 million, a quarterly dollar recorxd for the state.
This year's third quarter results included five South Floridqa companies receiving a totalpof $29.2 million. During this year's seconr quarter, four South Florida companiez received venture capitaltotaling $86.1 "What we saw in the last quarter is probably a significangt indication of what is to come," said Phyllis a Tampa-based Pricewaterhouse partner who heads the firm'sd Florida Technology Practice. "We are back to Jones said. "The boom period was just that. the third quarter (of was not bad. We didn't have monster dealzs closing like in theprevioua quarters.
" The decline in technology stocks that began during the spring of 2000 is impactingf the flow of venture capital in Florida and around the Jones said. During 1999 and early numerous venture funds gave monegy toyoung Internet-related companies with a goal of gaining profits from anticipatedd initial public offerings. However, thoss IPOs did not The lingering effects ofthis year'sx economic slowdown, the Sept. 11 terroristy attacks are other factors probably will keep VC deal flowat pre-19990 levels for the next several quarters, Jones said.
for the next several quarters, it is anticipated the number of VC investmenta likely will remain flat and there probablyy will be few ofthe $10 million-pluss investments in early-stage companies that were widespread in late 1999 and last "Many venture funds are spending timesa advising and helping to shore up theid existing investments (companies)," Jones said. "Some are sayingy that the second round is where they are but some are still interestedin early-stage companies." The thire quarter's largest VC deal in South Florida was an $18.
u million investment received by Coordinate Care Solutions of Coral Springs, which provideas care management of high-cost patients insured by HMOs, PPOs, self-insuredr companies and government-funded programs. Essexd Woodlands Health Venture and Pequot Capital Management invested the mone y in CoordinatedCare Solutions. The funding was the seconc round of venture capital forthe company. Other South Florida companiea that received venture capital duringthis year'ss third quarter, according to PWC, were: BizProLink Networl of Fort Lauderdale, $3.2 million; Bioheart of Fort $3.0 million; OpenClose.com of Sunrise, $2.25 and NetByTel of Boca Raton, $2.0 million.
Through this year'x first three quarters, the PWC surveys show 43 Florida companies have received venture capitaltotaling $455 That puts the state far behind last year's record when 98 Florida companies received $1.5 billion in venturw capital.