ServiceChannel gets $2M in venture capital
Long Island received $2 million in venture capital 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 Albertson-based software company ServiceChannel Inc. The company, which describes itself as a provider of facility service management software, did not return a request for comment.
Venture capital is financial backing provided to early-stage companies with growth potential; they are often seen as high-risk, high-return investments.
For the same first quarter period in 2012, two local businesses received a combined $2.1 million in venture funding.
David Silverman, a managing partner at PWC New York, said the low rate 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."
In 2011, six companies received a total of $45 million in venture funding, according to the MoneyTree Report. In 2012, four Long Island companies received a total of $32 million in venture capital investments, according to MoneyTree and a news release from A+ Technology & Security Solutions. A+ Technology, a Bay Shore-based surveillance systems company, received $12 million in venture funding before the end of 2012. The company disclosed the investment early in 2013.
In the metropolitan area, some 98 companies received $576 million in funding in the first three months of 2013, a decline of 28 percent compared to the last quarter of 2012. A majority of the companies getting funding were based in New York City.