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A Historical Perspective of Venture Capital Investments in
the SCAG Region
Quarterly Maps of Venture Capital Investment, 2nd Quarter 1997
through 2nd Quarter 2001
October 2001
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Venture Capital Defined
• Equity investments made in emerging private companies
• Barometer of regional and national economic health
• Identifies promising industry segments
• Predictor of future output, employment, and wealth growth
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Factors Influencing Where Capital is Invested
• Proximity to major research institutions and universities
• Proximity to major international airports
• Educated workforce
• Proactive government
• Venture capital firms located in the area
• Cultural amenities
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Investment Scattered across the Region.
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Investment more than Doubles from Previous Quarter.
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$38 Million Invested in Corona in the Inland Empire.
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1998 Starts Stronger than 1997 Ended.
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Santa Monica and West Side as well as Irvine Area Show their Dominance in Receiving Investments.
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Investments Stable at Year Long Trend of Approximately $200 Million.
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Year Ends with $250 Million in Investments in the 4th Quarter.
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Santa Monica, Irvine, and Westlake Village Main Investment Centers.
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A Firm Located in the City of Brea Received the Largest Investment of the Quarter, $131 Million.
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Santa Monica, El Segundo, Santa Ana, and Costa Mesa-based companies received large amounts of funding.
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The Santa Monica area and Irvine Area Remain Investment Hot Spots.
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Investments in the SCAG Region Reach Their Peak Quarterly Amount, $960 Million.
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1999 Totals Show the Hot Spots: Coastal LA County, Orange County, Conejo Corridor, and Pasadena.
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Investment in the Inland Empire Appears in Ontario.
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Almost $1 Billion in Investment, with Key Areas being the South Bay and Orange County. Note Investment in Riverside.
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South El Monte Receives $75 Million, Conejo Corridor and Orange County remain Strong.
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Regional Investments Remain Strong while Bay Area Suffers Technology Slump.
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A Banner Year for Investments in the Region.
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Technology Slump Arrives in SCAG Region, Investments at the Lowest Level in Two Years.
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Currently, Venture Capital Investments remain Steady with 1st Quarter 2001 and Well Below the Previous Year’s Level.
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Future Outlook for Venture Capital Investment
• The SCAG economy is diversified and has not been as adversely affected by the decrease in venture capital investments as the Bay Area
• In the aftermath of the terrorist attacks on the U.S., high paying New Economy jobs may be replaced with high paying engineering jobs
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Future Outlook for Venture Capital Investment
• The defense industry may resurface as a driving high-paying, wealth-generating industry in Southern California and could replace New Economy jobs in the region.