Local Venture Deals Surge 35 Percent in Fourth Quarter

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Venture capital investments in Los Angeles County jumped 35 percent in the fourth quarter to $254.9 million as investment funds plowed money into Internet companies, biotech firms and software manufacturers, according to a survey released Monday.


Most of the investments were small ranging from $5 million to $15 million and were largely eclipsed by the $110 million capital infusion made to online matchmaker eHarmony.com Inc., of Pasadena, according to the quarterly MoneyTree survey by PricewaterhouseCoopers, Thomson Venture Economics and the National Venture Capital Association.


In the fourth quarter, 31 companies in Los Angeles received venture funding, up from 19 companies that received $189 million in financing a year ago.


Nationwide, venture capital investments totaled $6 billion in the fourth quarter, versus $5.6 billion in the fourth quarter of 2003. For all of 2004, U.S. venture capital investments rose 10 percent to $20.9 billion, versus $18.9 billion in 2003.


Most of the increase was attributed to a rise in late-stage investments as venture capital funds increasingly find markets open to exit strategies, either by being bought out by a private equity firm or by going public.

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