Inside Long Island Business

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LI sees $2 million in venture capital funding in first quarter

Long Island received $2 million in venture capital investments in the first quarter of 2013, roughly equal to the amount invested in the region in the same period in 2012, according to the MoneyTree Report compiled by the National Venture Capital Association and PricewaterhouseCoopers.

The $2 million in funding went to the Albertson-based software company, ServiceChannel, Inc.

There has been a dearth of funding for early stage companies based on the Island in recent years. In last half of 2012, the MoneyTree Report had stated there were zero investments made in the area. It was later announced that Bay Shore-based surveillance systems company A+ Technology & Security Solutions received $12 million in funding before the end of 2012.

The New York metropolitan area saw $576 million in funding to 98 companies -- a majority in New York City -- for the first quarter, which represented a drop of 28 percent in investment dollars compared to the last quarter.

David Silverman, a managing partner at PwC New York, said the continuous lack of investments on Long Island should be a call to action for local officials and business people.

“The region has so many positive attributes," he said in a news release. "It should be attracting a much larger share of entrepreneurial companies, along with the money that funds them."

Tags: Long Island , venture capital , startups , software

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