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Keeping Track: Venture-capital flow

Tech-based startups see a surge

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.

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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

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Networking and equipment industry 4 11,047

Telecommunications industry 14 53,005

Retailing and distribution industry 133 901

(c) Copyright 2000. The Christian Science Publishing Society