The amount of venture capital investment in Texas is close to the highest it has ever been, according to one report. Experts believe that these numbers and the diversity of investment are a good indicator of the state's financial health.
In the second quarter of 2014, venture capital firms invested in $136.62 million in 12 Dallas-Fort Worth businesses. This represents the second-highest level of investment in the second quarter since 2006, when firms invested $164.9 million. Software, health care and retail were the three industries that saw the most investment. Retail came out on top, with $83.79 million from just one investment deal that involved two firms investing in an education material marketplace startup. Compared to the rest of the state, the Dallas Fort-Worth area was second only to Austin in the volume of investment seen during the quarter.
One expert believes that the variety of investments means that the area is not dependent on any single type of business. This diversifies the area's economy and might allow it to weather any difficulties faced by a particular industry. Reports indicate that the state could be on track to best last year's investment total of $1.34 billion. According to a spokesperson from PricewaterhouseCoopers says, the data shows that the current investment opportunities are with startups, which are much stronger than those from previous years.
Raising venture capital for Texas businesses can be a complicated process because of the various regulations that businesses face. An attorney who has experience in these regulations may be able to help by assessing the value of the company and the venture capital prospects. The attorney may then be able to help execute the necessary documentation to move forward with the deal.
Source: Dallas Business Journal, "North Texas Q2 venture capital investment hits second highest level", Danielle Abril, July 18, 2014