3rd-Quarter Investment Tops $3 Billion

U.S. venture investment continued at a breakneck pace in the third quarter, with investments totaling $3 billion, setting the stage for a record $12 billion for 1997, according to the Coopers & Lybrand “Money Tree” survey of 600 venture investors. The survey said venture capital-led investment in 646 U.S.-based companies had reached $3 billion in the September quarter. The study also found respondents put an additional $1.1 billion of private equity into 14 late-stage investments and buyout deals and $757 million more into overseas firms. Larry Bucksbaum, who directed the survey, said the industry was well on track to hit about $12 billion this year, topping the 1996 record of $10.1 billion and almost twice the $6.6 billion invested in 1995. California garnered the largest share of private equity dollars for the quarter, taking in 41% of venture capital investment, or about $1.2 billion, compared with 7% for Massachusetts, in second place with $215 million invested, and Texas and Washington with 6% each.