No venture funding for LI firms in 4Q
For the second quarter in a row, venture capital skipped Long Island.
No Long Island companies received investments from venture capital firms in the last three months of 2012 -- continuing a trend from the July to September quarter, according to a MoneyTree report published by PricewaterhouseCoopers and the National Venture Capital Association.
In the first half of the year, four Long Island companies received about $20 million in venture investments. The report comes after Long Island had a fruitful 2011, when six companies received over $45 million in venture capital funding, and no venture funding for LI companies in the final three months of 2010.
Despite recent attempts to ramp up innovation and creation of start-ups on Long Island, the effort "takes time," said Michael Faltischek, chairman of the Long Island Angel Network, an organization that invests in businesses before they begin generating revenues. "We've been working at it three years now, and angel funding has been, I think, successful."
Early-stage companies typically depend on seed funding first, followed by angel investments and then venture capital funding as they grow.
In the New York metro region as a whole, some 107 companies, mostly in Manhattan, received $784 million in venture investments in 2012's fourth quarter -- a 10 percent increase over the same period in 2011.
The LI companies that received funding this year include Coferon Inc., a Stony Brook biotech that got $12 million; innRoad, a Southampton software company that got $5.9 million; and Certpoint Systems Inc. a software developer in Roslyn Heights that got $1.6 million. An investment was also made in AccuVein Inc., a Huntington medical devices firm, but the amount was not disclosed.