VC investment slows - South Florida Business Journal:

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million in Florida companiesz duringthis year's third the lowest dollar volume in the state sincwe 1999's first quarter, according to a survey by survey, compiled by the accounting and consulting firm and venture capitalk consultant Venture One, showede 13 Florida companies received venturew capital during the recent quarter. That averageds out to $6.9 million per investment. The receng quarter's statewide dollar total was considerablyt smaller than inthis year's second quarter, whicgh had 12 VC deals totaling $260.7 The Money Tree survey for 2000's third quarterr showed 23 Florida investments totaling $542.8 million, a quarterly dollar record for the state.
This year'zs third quarter results included five South Florida companies receiving a totalof $29.2 million. Durin this year's second quarter, four South Florida companies received venture capitaltotalingv $86.1 million. "What we saw in the last quarte r is probably a significant indicatioj of what is to saidPhyllis Jones, a Tampa-basee Pricewaterhouse partner who heads the firm'as Florida Technology Practice. "We are back to Jones said. "The boom periods was just that. Historically, the thirds quarter (of 2001) was not bad. We didn'tr have monster deals closing like in thepreviousw quarters.
" The decline in technology stocks that begabn during the spring of 2000 is impacting the flow of ventur capital in Florida and aroundf the country, Jones said. During 1999 and earlyt 2000, numerous venture funds gave money toyoung Internet-related companiezs with a goal of gaininb profits from anticipated initialp public offerings. However, thosd IPOs did not materialize. The lingering effects of this year'sx economic slowdown, the Sept. 11 terrorist attacks are other factors probably will keep VC deal flowat pre-1999o levels for the next several quarters, Jones said.
Thus, for the next severa quarters, it is anticipated the number of VC investment likely will remain flat and theree probably will be few ofthe $10 million-plus investmentes in early-stage companies that were widespread in late 1999 and last "Many venture funds are spending timeds advising and helping to shore up their existing investments (companies)," Jonesz said. "Some are saying that the second round is wherew theyare looking, but some are stilp interested in early-stage companies." The third quarter'es largest VC deal in South Florida was an $18.
7 million investment received by Coordinatede Care Solutions of Coral Springs, whicgh provides care management of high-risk, high-cost patients insureds by HMOs, PPOs, self-insured companies and government-funded programs. Essex Woodlands Health Venture and Pequot Capital Management investee the money in CoordinatedCare Solutions. The fundintg was the second round of venture capital forthe company. Other Soutn Florida companies that received venturse capital duringthis year'as third quarter, according to PWC, were: BizProLink Network of Fort $3.2 million; Bioheart of Fort Lauderdale, $3.0 million; OpenClose.co of Sunrise, $2.25 and NetByTel of Boca Raton, $2.
0 Through this year's first three quarters, the PWC surveys show 43 Floridaq companies have received venture capital totalingf $455 million. That puts the state far behindlast year's record when 98 Florida companies receive $1.5 billion in venture capital.