IVCA Releases Q1 Private Equity Monitor reviewing Venture & Private Equity Investments
Chicago, May 20, 2008 – Venture capital investment in “green” companies in Illinois continued to expand at the start of 2008, reaching $60.3 million in the first quarter of 2008 compared to $10 million in the last quarter of 2007 and $600,000 in the first quarter of last year, according to the Illinois Venture Capital Association's First Quarter 2008 Private Equity Monitor. Green companies are involved in such industries and alternative energy sources, energy conservation, pollution and recycling and biotech processes for pollution and toxic waste.
Overall, venture capital firms invested $131 million in Illinois in the first quarter of the year, the second lowest amount in the last five quarters and down 31 percent from the last quarter of 2007. There were 20 deals in the first quarter of the year, compared to 30 in the last quarter of 2007 and 26 valued at $170.9 million in the first quarter of 2007. The pace of the first quarter was also slightly below the five-year quarterly average of $143.6 million.
California led the country with $4.2 billion in venture capital investment in 533 companies in the quarter. The state of California also provided more funds to Illinois companies than any other state, accounting for $32.8 million dollars invested, about a quarter of the total for the first period of the year. Illinois investment firms ranked seventh, investing $6.9 million dollars and accounting for 23 percent of the companies receiving funds in the state.
Investment in Illinois Information Technology (IT) companies was up slightly from the last quarter of 2007, totaling $25.1 million compared to $18.5 million in Q4, 2007. IT investment fell from the first quarter total of $87.2 million in 2007, however.
Venture capital investment in Healthcare companies in Illinois was off from both the first and fourth quarter of last year totaling $59.8 million. Investment in other industries, such as consumer, financial, transportation and agricultural companies, was also off from the final quarter last year, but at $46.1 million was above the $11.8 million pace of the first quarter a year ago.
Early stage venture capital investment in Illinois Companies continued its upward trend of the past year, totaling $69.7 million dollars, the highest level of the last 5 quarters and well above the five-year quarterly average of $23.5 million. Later stage and Buyout investments, however, slipped in the first period this year, totaling $49 million and $121.4 million, respectively, below the five-year averages of $67.3 million for later stage venture capital and $273.6 million for buyout capital.
Buyout capital investments in Illinois companies in the first quarter of the year were lower than the last quarter of 2007, but were up from the first quarter at year ago. Buyout investments totaled $183.3 million in Q1, 2008 compared to $309.6 million in Q4, 2007 and $141.7 million in Q1, 2007. The 41 percent decline from the prior quarter was smaller than the 64 percent decline in buyout investments nationwide in the first quarter of the year from the last quarter of 2007.
Nationwide, Illinois ranked tenth in the amount of buyout capital for state companies, with 27 deals. Massachusetts was first in the quarter with 39 deals valued at $1.213 billion. Illinois ranked first as the source of funding in terms of the number of Illinois companies that received buyout capital in the first quarter, and eighth in terms of the amount of buyout capital invested in Illinois companies.
