Press Room

FOR IMMEDIATE RELEASE

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

Fairfax County Companies Lured $1.25b in Venture Capital in '00

Q4 numbers are two-thirds of Virginia, top Maryland

Fairfax County, Virginia, February 19, 2001 — Twenty-three Fairfax County-based technology companies received more than $277 million in venture capital funding in the last quarter of 2000, accounting for two-thirds of the total for Virginia and topping the Maryland state total, according to the Fairfax County Economic Development Authority (FCEDA).

The fourth quarter numbers bring the yearly total to more than $1.25 billion invested in 107 companies, according to FCEDA calculations drawn from the PricewaterhouseCoopers MoneyTree Report in cooperation with Venture One. The yearly totals more than double the record $614.5 million in venture capital invested in Fairfax County companies during 1999 and almost double the number of county-based companies (55) that received funding in 1999.

The MoneyTree Report listed 21 Fairfax County companies that received $275.15 million during the fourth quarter. Venture One listed an additional company that received $2 million. Another company received undisclosed bridge funding.

The Fairfax County investments reported by PricewaterhouseCoopers represent 68.4 percent of the $402.3 million in venture capital invested in Virginia companies during the quarter. Maryland firms received $124.8 million in venture capital during the period, and Washington, D.C., firms received $15.2 million, according to the MoneyTree Report.

"Venture capital investment in a community's businesses is a strong indicator of its present and future growth. Fairfax County is bullish on its future economic development and the entrepreneurial companies and spirit that are making it happen," said Gerald L. Gordon, PhD., president of the FCEDA.

The fourth-quarter total fell from the three previous quarters, each of which topped $300 million, but the drop was in line with the nationwide slide in venture capital funding during the last quarter. Thirty venture capital firms and organizations are active in Fairfax County, up from 20 at the end of 1999.

The additional company reported by Venture One was Globecom Interactive in Chantilly, which received $2 million in funding, and SingleShop in Herndon, which received undisclosed bridge funding.

Capital invested in Fairfax County companies in the previous three quarters of 2000:

• Second quarter: $338.83 million, 24 companies.
• First quarter: $327.3 million, 30 companies. 

• Third quarter: $310.97 million, 30 companies.

Fairfax County companies receiving venture capital investments in the fourth quarter of 2000, according to the MoneyTree Report, are:    

The Fairfax County Economic Development Authority assists businesses by identifying possible sites and facilities, and is a source for up-to-date demographic and economic statistics.  The FCEDA maintains a capital attraction program to link entrepreneurs and start-up companies with funding sources. Another program assists small, minority and women-owned businesses. The FCEDA maintains marketing offices in London, Frankfurt and Tokyo.

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