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FOR IMMEDIATE RELEASE
Alan Fogg,
Director of Communications
afogg@fceda.org, 703-790-0600
Record number of Fairfax County firms receive venture capital investment
More than half a billion dollars invested in Fairfax County firms in 1999
Fairfax County, Virginia February 15, 2000 — Eighteen Fairfax County companies received $222.3 million in venture capital funding in the fourth quarter of 1999, setting a record for capital attraction in Fairfax County.
The number of companies receiving funding is the most in any quarter since the Fairfax County Economic Development Authority began its Capital Attraction Program in 1996. Including the fourth-quarter figures, venture capitalists invested $614.5 million in 55 Fairfax County companies during 1999. As a comparison, 40 companies received $187 million in funding in 1998. Venture capital funding in Fairfax County rose 229 percent in 1999, compared to 145 percent nationally. All of the Fairfax County companies receiving venture capital this round are in the Internet, software and communications sectors.
"In 1999 Fairfax County became one of the country’s most important locations for venture capital, even attracting more money than some states, and the fourth quarter numbers again prove that Fairfax is the technology hub of the state and the region," said Gerald L. Gordon, president of the Fairfax County Economic Development Authority.
Pricewaterhouse Coopers LLP, the accounting and consulting firm, publishes the quarterly MoneyTree Report, widely held as the authority in tracking venture capital dollars. In addition to PricewaterhouseCoopers, VentureOne, a marketing research firm, also tracks venture capital investments. For the fourth quarter of 1999, PricewaterhouseCoopers listed 15 Fairfax County firms receiving funding; the VentureOne report included an additional three firms.
- Certilearn, $0.2 million
- MEI Software Systems, $0.75 million
- Para Protect Services Inc. $1 million
- Roku Technologies, $2.5 million
- Admine.com, $2 million
- Eyecast.com Inc., $2 million
- Invertix, $2.9 million
- Digital Focus, $3 million
- Brainbench Inc., $3 million
- Equalfooting.com Inc., $8 million
- SingleShop.com, $13 million
- Riverbed Technologies, $11.7 million
- Workscape Inc., $14 million
- webMethods Inc., $17 million
- Hotwire Services, $60 million
VentureOne reported three additional Fairfax County firms received venture capital in the fourth quarter of 1999.
The Fairfax County firms snagged 40 percent of all the fourth quarter venture investment in Virginia, according to PricewaterhouseCoopers numbers. The 15 Fairfax County deals noted in the MoneyTree Report outnumber the 13 deals it reported for the rest of Virginia.
Venture capital is funding provided to start-up companies in exchange for a percentage of ownership in the firms. Twenty venture capital firms are located in Fairfax County, as are several law firms and banks that specialize in serving the venture community.
The Fairfax County Economic Development Authority (FCEDA) operates an aggressive capital attraction program that has two goals: One, assist entrepreneurs by bringing them together with venture capitalists and "angel" organizations; and two, increase the amount of venture activity in the county. For more information, visit the FCEDA’s Web site at: www.FairfaxCountyEDA.org or contact Dave Harvey, capital attraction manager at 703-790-0600.
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