Businesses see drop in venture capital

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DENVER (AP) - Businesses in Colorado collected almost 40 percent less venture capital in the first quarter of 2001 as in the same period last year, a national survey shows.

The survey, released Wednesday, says Colorado businesses got about $395 million in venture capital. That is down 60 percent from the fourth quarter in 2000.

The plunge was in line with national trends. Venture capital investments nationally fell to $11.7 billion during the first three months of the year, down more than 50 percent from the first quarter of 2000.

The survey was released by the National Capital Association, an industry trade group, and its economic arm, Venture Economics.

"You have to look at the economy as a whole," said Venture Economics spokesman Joshua Radler. "The public markets have taken a beating and the venture capitalists are starting to take care of the companies already in their portfolios."

Not a single venture-backed Colorado company went public during the first quarter, according to Venture Economics. In comparison, four local venture-backed firms went public during the same quarter a year ago.

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