Venture Capital Investments Drop in New Jersey

According to a recent MoneyTree report issued by PricewaterhouseCoopers and the National Venture Capital Association, the amount venture capitalists invested in New Jersey companies last year declined by $2 million for a total of $320 million invested. Meanwhile, the increase in VC money on a national level rose to its highest point since then end of the dot-com period in 2001.

The decrease in VC investments in New Jersey has been ongoing since 2008, and represents a $400 million decline since the “Great Recession.” On a positive note, the decrease has been slowing down these past few years.

On a national level, venture capitalists invested $48.3 billion in 4,356 deals last year. This represents a 61 percent spike in dollars and a 4 percent increase in the amount of deals from 2013.

In the fourth quarter of 2014, investors put $51.9 million into 11 Garden State companies. This is more than a $100 million drop from the previous quarter. Most of that money went to the medical devices and equipment industry. For all of 2014, the medical devices and equipment sector received nearly $81.7 million in VC money.

The retail and distribution sector was second with $80 million invested last year. The biotech sector received $41.6 million.

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