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Contact: Alan Fogg, Communications Director, afogg@fceda.org,
703-790-0600 (o) or 571-213-5065 (m)

16 Fairfax County companies receive $131 million in venture capital funding in third quarter

Fairfax total tops Maryland investment amount

Fairfax County, Virginia USA, December 14, 2006 – Sixteen Fairfax County-based companies received almost $131.5 million in venture capital investments in the third quarter of 2006, according to figures compiled by the Fairfax County Economic Development Authority (FCEDA) based on the recently released PricewaterhouseCoopers/Venture Economics/National Venture Capital Association MoneyTree™ Survey. All 16 companies work in the technology industry.

The Fairfax County total topped the $109 million received by companies in Maryland , and represents 39.6 percent of the $332 million invested in 54 deals involving companies from the Washington region (District of Columbia, Virginia, Maryland, West Virginia), according to the MoneyTree™ Survey. Th e total for Fairfax County companies represents 82.1 percent of the $160 million invested in Virginia companies during the quarter.

The third quarter dollar total for Fairfax County companies was more than the first two quarters combined. In the first six months of the year, 19 companies received $112 million in venture capital. The year-to-date total is 35 companies and $243 million in venture capital.

Companies that garnered the most venture capital money include Internet communications firm SunRocket ($33 million), IT firm MindSHIFT Technologies ($18.4 million) and Internet company Command Information ($16 million)

“Venture capital is an important indicator of entrepreneurial strength, especially in technology fields,” said Gerald L. Gordon, Ph.D., president and CEO of the FCEDA. "These results are indicative of the strength of the current economy and the outlook for continued growth and creativity."

Fairfax County companies have received almost $4 billion in private equity funding since the FCEDA began its Capital Attraction Program in 1997 to link entrepreneurs with possible funding sources. More than 30 venture capital firms and organizations have offices in Fairfax County, the highest concentration in the Washington area.

Business growth helps Fairfax County fund public services, such as the nation’s top-rated school system, that contribute to the quality of life of its residents. Fairfax County offers businesses a state-of-the-art telecommunications infrastructure, access to domestic and international markets through Washington Dulles International Airport, and a well-educated workforce.

The Fairfax County Economic Development Authority ( www.FairfaxCountyEDA.org) promotes Fairfax County as a business and technology center. The FCEDA’s Capital Attraction Program links technology entrepreneurs with potential investors. Another program supports the growth of minority and woman-owned businesses. The FCEDA maintains worldwide marketing offices in Silicon Valley, Bangalore, Frankfurt, London, Seoul and Tel Aviv.

Below is a list of companies receiving venture capital investment in July, August and September 2006.

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