Venture capital investment increased in 2010 over the previous year both nationally and in the state of Texas, according to a report released this week by PricewaterhouseCoopers, the National Venture Capital Association and Thomson Reuters.
The MoneyTree Report found VC investment nationwide rose by 19 percent last year, reaching a total of $21.8 billion and suggesting the economy continued to improve as investors found more confidence in new ventures and small businesses.
Meanwhile, the Lone Star State saw a 30 percent growth in VC investment to reach $890 million, providing a boost in confidence to entrepreneurs looking to incorporate in Texas. However, the gain was not experienced statewide.
"The game right now is to find the Groupons that were started in a dorm room for nothing," John Jaggers, a general partner at Dallas-based venture firm Sevin Rosen Funds, told the Dallas Morning News. "It's trying to find successful companies and giving them growth capital. In Dallas, there's not the critical mass of those internet companies."
In fact, the Dallas area noted a drop in VC speculation, while the North Texas region as a whole saw VC investment fall 47 percent to $204.8 million.
As the state begins to tackle a growing budget crisis while adhering to its principles of limited taxation, it is doing everything in its power to boost investment in Texas' growing or emerging enterprises.
Tags : formation, incorporation news, small business management, tx
Posted: Jan 21st, 2011