Re: FW: Investment In U.S. Start-Up Companies Surging

["DiemQuynh Nguyen" <diemquynhng@hotmail.com>]

Cha`o ba'c Anh Le:
Ca'm o*n ba'c ca'i tin na`y.
But no problem! nga`y nay ca'c start-up company (or small company) co`n 
mo^.t chie^'n lu*o*.c "ca' nha'm" nu*~a! Chie^'n lu*o*.c na`y la` nhu* con 
"ca' nha'm" du`ng ddia? hu't cu?a mi`nh ba'm va`o ca'c con ca' to trong 
bie^?n kho*i dda^`y so'ng ca?, ca' nha'm tuy be' nhu*ng luo^n ddi vo*'i 
va^.n to^'c cu?a ca' ki`nh . Nha` chie^'n lu*o*.c cu?a mo^.t co^ng ty hay 
bo^. kinh te^' thu*o*ng mai. cu?a mo^.t quo^'c gia la` nhu*~ng ngu*o*`i 
sa'ng ta.o ra nhu*~ng chie^'n lu*o*.c tha^n ky` mang ma`u co*~ sa('c a'o 
ve^` cho nho'm mi`nh .
Cheers
DX


From: "Anh Le" <anh_t_le@hotmail.com>
>Reply-To: vnsa@list-server.net
>To: vnsa@list-server.net
>Subject: FW: Investment In U.S. Start-Up Companies Surging
>Date: Tue, 17 Aug 1999 14:04:53 PDT
>
>
>Investment In U.S. Start-Up Companies Surging
>By Andrea Orr
>
>PALO ALTO, Calif. (Reuters) - It is no longer accurate to say dollars are
>flowing into new high-tech ventures. The money is now gushing in.
>
>A new survey shows venture capital investments in young U.S. companies
>reached $7.67 billion in the second quarter of 1999, beating the old record
>by 78 percent, and more than doubling the $3.77 billion invested in the
>second quarter of 1998.
>
>Put another way, it means that 10 new companies received an average of $7
>million in funding every single day of the last quarter, including 
>weekends.
>
>The Money Tree survey by PriceWaterhouseCoopers shows that most of the new
>venture capital went into technology investments, including environmental
>technologies and biotechnology, but predominantly to businesses related to
>the Internet.
>
>``Investments have been getting bigger every quarter for the last couple of
>years. But we are astounded by the magnitude of the increase this 
>quarter,''
>said Kirk Walden, National Director of Venture Capital Research at
>PriceWaterhouse Coopers.
>
>In addition, he notes that the survey does not capture all the money that 
>is
>being put into new companies since it tracks only investments by venture
>capital firms, and not those made by corporations, or by individual
>``angel'' investors.
>
>A multitude of large corporations from Intel Corp. (Nasdaq:INTC - news) to
>the European consumer products company LVMH Moet Hennessy Louis Vuitton
>(Nasdaq:LVMHY - news) have aggressively built up their own venture funds 
>for
>investment purposes or to enhance their own technology operations.
>
>Walden said the PriceWaterhouse survey did not include such investments,
>unless they were made in conjunction with a venture capital firm.
>
>And, on the other end of the spectrum are more and more individual 
>investors
>opting to put their money into a high-tech start-up rather than the stock
>market.
>
>Don Bell, for example, an oil industry entrepreneur from New Mexico who
>relocated to San Francisco three weeks ago to explore Internet investment
>opportunities, said he is being bombarded by other oil executives with 
>money
>to invest.
>
>``I won't say they're throwing money at me, but they are saying, 'Won't you
>please find something for me to invest in','' said Bell.
>
>While the total number of companies receiving venture capital funds rose to
>992 in the second quarter from 763 the year before, the survey also shows
>large increases in the size of individual financing packages. It said the
>average start-up received $7.4 million in funding, up from $4.9 million a
>year ago.
>
>The record this quarter was set by Via Networks, a Reston, Virginia-based
>Internet service provider that is expanding into Europe. Via was funded to
>the tune of $128 million during the quarter.
>
>PriceWaterhouse says the surge in investments reflects not just the
>proliferation of new businesses, but the increasingly fierce competition,
>which requires start-up companies to get more money earlier on so they can
>get up and running before their rivals do.
>
>This focus by venture capital firms on high-stakes projects sometimes means
>that true start-ups fall beneath their radar screens and have to rely on
>individual investors to get $1 million or so in ``seed capital'' to flesh
>out an idea.
>
>Although it may seem like a virtual windfall for entrepreneurs, such large
>investments will not necessarily benefit venture capitalists themselves, 
>who
>are finding that the cost of a small stake in a company is higher and
>higher.
>
>``We don't believe that it is sustainable, or that it is healthy,'' Walden
>said. ``It can overheat valuations and depress the venture capitalists'
>long-term returns.''
>
>Not all technology industries are benefiting either. Biotechnology
>investment, for instance, has been virtually flat for the past three years.
>
>In terms of geographic region, however, entrepreneurs all over the country
>seem to be flush. While Silicon Valley companies received the bulk of the
>investment, almost every region of the country set new records.
>
>Silicon Valley companies attracted $2.7 billion in venture capital
>investment during the second quarter, while other regions combined 
>accounted
>for close to $4 billion. Investments in New England companies ranked second
>behind those in Silicon Valley.


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