IVCA Releases Q4 2008 Private Equity Monitor reviewing Venture & Private Equity Investments

Chicago, February 4, 2009 – “Green” venture capital investments in Illinois companies enjoyed the strongest quarter in the last five years, although venture capital investment in the state overall slipped slightly in the fourth quarter of 2008 amid turmoil in the U.S. and global economies.

In the fourth quarter last year, 22 Illinois companies received a total of $97.2 million in venture capital investment according to the Illinois Venture Capital Association, based on data provided by Thomson Reuters' VentureXpert. That amount was down from 30 companies attracting $195.4 million in the third quarter. While the final quarter's tally for companies was above the five-year quarterly average of 20, total venture capital in the quarter was below the five-year average of $124.2 million. For the entire year of 2008, Illinois venture capital investment slipped to $511.0 million from $600.1 in 2007. Still, the 2008 venture capital investment total was the second highest in the last five years.

Venture capital investment in Illinois “green” companies in the last quarter of 2008 was the highest in the last five years, totaling $46.3 million, while the yearly total of investment in Illinois green companies was also the highest in five years, at $80.6 million. Illinois firms investing in “green” U.S. companies, although down for the quarter at $12.7 million, was the highest yearly total, at $96.3 million.

Buyout capital investment in Illinois companies plummeted during the turbulent final quarter of 2008, dropping to $10.5 million from the torrid $438.8 million pace of the prior quarter. For the year, buyout capital investment in Illinois still was above 2007, totaling $787.1 million compared to $735.5 the year before. The 2008 pace was the third highest of the last five years.

Illinois ranked 25^th in buyout-related investments in the fourth quarter while New York was first at $1.2 billion. For the entire year, Illinois ranked 15^th in the country while New York was also first for the year at $7.1 billion.

Illinois ranked 15^th in the nation in venture capital investments in the fourth quarter, while Washington was first with 49 companies raising a total of $3.3 billion. For the entire year, Illinois ranked 16^th nationally. California venture capital investment topped the list, totaling $16.2 billion for the year.

Venture capital investment by sector was down across the board in the last quarter of 2008, with information technology investment at $27.2 million versus $87.5 million the prior quarter, healthcare at $17.5 million versus $46.0 million in the third quarter, and other industry investment at $52.5 million versus $61.8 million in the prior quarter.

For pdf of full report, please click here.