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They’re in
the Money
N.E. firms attract record venture-capital investment; software leads pack
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Business New Haven
11/30/1998
By: BNH
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No investment jitters here.
During the third quarter, venture-capital funds pumped a record $550 million into 114 young New England companies, continuing their bets on software, communications and medical technology as tomorrow's money-makers. That money represented one-seventh of the $3.77 billion that went to 708 companies nationwide during the July-September period - also a record.
Local firms receiving financing during the period include the Eicon Group of New Haven, Serviscope Corp. of Wallingford, the Milford-based Cardiopulmonary Corp., Genaissance Pharmaceuticals Inc. in New Haven and CDC Technologies Inc. of Oxford.
The two top sectors, software and communications (including Internet-related companies), captured 65 percent of New England investment dollars - double what those sectors attracted nationwide. Medical instruments and devices occupied the third slot, followed by biotechnology and pharmaceutical companies.
Among area firms, Genaissance led the pack, attracting $10 million in second-level financing from International Biomedicine Management Partners, Sosei Co. Ltd. and Connecticut Innovations Inc. (CII), among others. Genaissance is a drug-development company.
Cardiopulmonary Corp. of Milford garnered $5 million, also in second-tier financing, from Axiom Venture Partners LP, the Connecticut Future Fund, CII, Elliot Associates, Oxford Bioscience Partners and others. Cardiopulmonary Corp. develops ventilator and monitoring systems for intensive-care settings.
In Oxford, CDC Technologies Inc. has developed a blood-analysis device for veterinarians and human applications. The firm attracted $2.5 million in a second round of financing from companies including Capital Southwest Corp.
The Boston Globe/Pricewaterhouse-Coopers survey, which tracked the venture-capital activity, again ranked California's Silicon Valley as the nation's dominant region for new companies getting venture funding.
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