Following a bumper crop of venture deals in August, tech companies in the Carolinas and Georgia have closed on more than $725 million in financing so far this year.
Despite few recent deals, Georgia tech companies still have amassed more than $400 million in 42 venture financings so far this year to lead the region.
'The fact that a VC - who is also an ex-RBOC division president in this space - has committed to the company indicates that interest in the Hatteras solution is real and comes from service providers who would actually pay for it,' analyst adds.
Biggest VC deal of the year for North Carolina includes a new investor. Company has raised $73 million in past two years.
Week in Review: A Steady Stream of New Business Contracts Give a Boost to the Southeast's Tech Trade
Flurry of venture deals, Trimeris move to raise capital, and a myriad of other deals fill a busy week. Has the bottom been reached?
Recent upsurge continues, including three deals worth $14 million or more last week. More than 80 deals done in Carolinas and Georgia raise $675.5 million in 2002.
Four deals last week for $31 million includes Wave7 getting $15.5 million and Promixa Therapeutics adding $14 million. Average deal is right at $10 million.
Telecom slowdown spilled over into wireless, too. Companies such as Avesair, Silicon Wireless, Summus, EMS hope for the best. 'Certainly we are concerned but we think equipment sales will pick up again next year,' says Silicon Wireless founder.
Industry can't seem to agree how customers should be billed. 'There's nothing on the user side to help people decide they need it,' consultant Bill Weiss says. 'On the operators side they're saying we promised 3G and now we have to deliver.'
In a series of deals and announced plans, high-tech and life science firms get boosts on a variety of fronts. Biotech initiative and expansion of Triad park add to positive picture.
With a number of deals closed recently, 80 tech companies in the Carolinas and Georgia have raised $623 million in venture capital so far this year.
Despite few recent deals, Georgia tech companies still have amassed more than $370 million in 38 venture deals so far this year to lead the Southeast by a large margin.
<b>Guest commentary:</b> The 1996 Telecommunications Act didn't deregulate the industry, and maybe that's why so many telecom companies are teetering on the financial brink, says one analyst.