Press Room

FOR IMMEDIATE RELEASE

Alan Fogg, Director of Communications
afogg@fceda.org, 703-790-0600

Fairfax County Technology Firms Smash Venture Capital Records Again

More than $327 Million Invested in 30 County Companies in First Quarter of the Year

Fairfax County, Virginia, May 16, 2000 — Venture capital firms poured $327.3 million into 30 Fairfax County-based technology firms in the first three months of 2000, according to the MoneyTree Report published by PricewaterhouseCoopers. The dollar value of the investments and the number of firms that received venture capital smashed Fairfax County records set in the fourth quarter of 1999.

The MoneyTree Report published by PricewaterhouseCoopers listed 28 Fairfax County firms that received $321.3 million in venture capital in the first quarter of the year. In addition, two Fairfax County-based companies received $6.0 million between them in a "Who Wants to be a Millionaire"-style game at the Venture Market South fair sponsored by Red Herring magazine in February.

The numbers eclipsed fourth-quarter 1999 records when 18 Fairfax County firms received $222 million in private equity investment. Venture capital investment has climbed since the first quarter of 1999, when Fairfax County firms received $44 million. In addition to charting more firms receiving record amounts of funding, the latest tally includes a number of firms that received second- or third-stage funding.

The $321.3 million total from the MoneyTree Report is 73.9 percent of the Virginia total and 38.1 percent of the total for Virginia, Maryland and Washington, D.C., combined. The Fairfax County total reported by PricewaterhouseCoopers outstrips totals for Maryland ($221 million), the District of Columbia ($186 million), North Carolina ($301 million) and New Jersey ($295 million).

Dr. Gerald L. Gordon, president of the Fairfax County Economic Development Authority (FCEDA), noted that the increase in investments follows the decision of more venture capital firms to locate in Fairfax County. "Venture capitalists are being drawn to Fairfax County like bees to honey," Gordon said. "There are good businesses to back here, and venture capitalists are finding them."

These Fairfax County firms received venture capital in the first quarter of 2000, according to the MoneyTree Report:

• 2wrongs.com, Falls Church, $4.0 million.
• Acorn Networks, Great Falls, $8.0 million.
• Amazing Media, Fairfax, $12.0 million.
• Audio Point, Reston, $0.5 million.
• BioNetrix, Vienna, $15.0 million.
• Broadband Office, Falls Church, $50.0 million.
• Cendex, Falls Church, $2.0 million.
• Collaborex Inc., Fairfax, $4.6 million.
• Digital Commerce, Reston, $50.5 million.
• eMotion, Vienna, $0.5 million.
• HiFusion.com, McLean, $6.0 million.
• iDefense, Alexandria,  $0.3 million.
• ISR Solutions, Chantilly, $1.3 million.
• MainControl, McLean, $17.8 million.
• MultiCity, Vienna, $15.0 million.
• Ocular Networks Inc., Fairfax, $10.1 million.
• Para Protect Services, Alexandria, $1.0 million.
• Pathnet Inc., Reston, $5.0 million.
• Reliacast, Herndon, $8.2 million.
• Roku Technologies, Chantilly, $6.1 million.
• SI International, McLean, $14.0 million.
• Simplexity, Reston, $27.1 million.
• Sunrise International, McLean, $9.0 million.
• Vipro, Herndon, $1.0 million.
• WomenConnect, McLean, $0.8 million.
• WorldStor.com, Reston, $5.0 million.
• XML Solutions, McLean, $16.5 million.
• Zona Financiera, Falls Church, $30.0 million.

The two Fairfax County companies that received venture capital from the Venture Market South fair:

• iKimbo, Reston, $1.0 million.
• SingleShop, Reston, $5.0 million.

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 an increasing number of law firms, accountancies and banks that specialize in serving the venture community.

The Fairfax County Economic Development Authority (FCEDA) operates an aggressive capital attraction program managed by David Harvey. The program has two goals: Assist entrepreneurs by bringing them together with venture capitalists and "angel" organizations, and increase the amount of venture activity in the county. For more information, visit the FCEDA's web site at: www.FairfaxCountyEDA.org.

Reporters, editors, producers: Dr. Gerald Gordon, who has headed the FCEDA since 1984, is available for interviews.

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