Bio firms help Arizona to VC high, beating national trend

July 27, 2005

By hammersmith

Two reports show that Arizona had its strongest venture capital investment quarter since 2002 and, only halfway through the year, has already beaten last year’s investment total. The reports also say that Arizona is performing better than the nation, which is experiencing a downturn in venture investment from its 10-quarter high last year.

The seven second-quarter deals reported by Ernst & Young/VentureOne totaled $67.9 million, the highest quarterly sum since the $73 million influx of first quarter 2002. In addition, Arizona’s half-year total of $91 million already exceeds the combined $80 million venture investment dollars for the entire year of 2004.

According to the MoneyTree Survey released by PricewaterhouseCoopers, Thomson Venture Economics, and the National Venture Capital Association, based on six companies, venture capitalists injected $46.8 million into up-and-coming Arizona companies during second quarter 2005. By comparison, national venture funding totaled $5.39 billion, a decrease of 6 percent from this time last year.

Three of the six companies identified by MoneyTree are bioscience firms: Tucson-based AmpliMed Corp., which received a third round of $6.5 million; Chandler’s Sensys Medical Inc., recipient of a 13th round of $3 million; and High Throughput Genomics Inc., another Tucson company, which received a third round of $2.5 million.

For more information:

Venture funding flowing into state,” Arizona Republic, 07/27/2005

Arizona venture capital deals highest since 2002,” Business Journal, 07/25/2005