1999 VC funding tops total from last 11 years

The information technology industry raises enough venture capital in 1999 to eclipse the total raised in the 11 years from 1988 to 1998, according to a report.

Stefanie Olsen Staff writer, CNET News
Stefanie Olsen covers technology and science.
Stefanie Olsen
2 min read
The information technology industry raised enough venture capital in 1999 to eclipse the total raised in the 11 years from 1988 to 1998, according to a report.

Total investments in the tech industry reached $34.3 billion in 1999, vs. $11.2 billion in 1998, according to an annual report from VentureFinance, published by New York-based Technologic Partners, which has been tracking high-tech venture capital since 1986.

Some of the report's other findings include:

 The top industries pulling in funds in 1999 included Internet services, with $14.6 billion; voice and data communication services, with $6.2 billion; communications products, with $4.2 billion; enterprise software, with $2.8 billion; and Internet and networking software, with $2.7 billion.

 The top ten VC firms in 1999 based on their number of investments were New Enterprise Associates, with 108; Accel Partners, 94; Intel Capital, 88; Chase Capital, 83; Draper Fisher Jurvetson, 80; Bessemer Venture Partners, 79; Oak Investment Partners, 79; Atlas Venture, 63; TL Ventures, 63; and Norwest Venture Partners, 61.

 California-based companies raised a total of $17.7 billion in venture funds--the highest figure accumulated in the United States--followed by Massachusetts, at $3.1 billion, and New York, at $2.6 billion. Washington, Colorado, Texas, Pennsylvania and Florida came in the top 10.

 Communications company NextWave Telecom lead the tech industry in investments, pulling in $2.3 billion over the year to purchase communication spectrum licenses from the government. Digital Access, a software and systems engineering company, raised $450 million, and fiber-optic networks provider 360networks raised $345 million. Several e-commerce companies also fell in the top 10. In a third round of funding, CarsDirect.com raised $280 million in 1999; Webvan Group raked in $275 million, and financial firm Datek Online raised $195 million.

Corvis, which provides equipment that expands the capacity of fiber-optic networks, received $215 million in 1999. Network equipment provider Colo.com raised $200 million.