Venture-backed companies in US Account for 17% of GDP and 10 million Jobs: Study
U.S. companies that received
venture capital from 1970-2005 accounted for 10 million jobs and $2.1
trillion in revenues in 2005, according to a study conducted by Global
Insight for the National Venture Capital Association (NVCA). This
represents 9% of the total private sector work force and 16.6% of total
U.S. GDP. Venture investment itself represents just 0.2% of U.S.
GDP.
Private-equity
funds continued to increase their dominant position on both ends of the
domestic markets; they accounted for roughly one-fourth of M&A
activity and sponsored more than 40% of all IPOs, with the time between
purchase and sale often shrinking to mere months, reports Dealmaker
magazine.
The
median pre-money valuation of U.S. venture-backed companies reached $18.5
million in 2006, compared to $15 million in 2005, according to VentureOne
data. This is the highest median valuation since the peak of $25.1 million
in 2000.
Silver Lake Partners plans to raise
$10 billion for the
biggest technology buyout fund, setting the stage for $20 billion plus
leveraged buyouts in tech sector, 
Carlyle,
the private equity powerhouse with 48 funds and owning 200 companies
around the world, is the topic of cover story in the latest BusinessWeek
magazine. The article highlights how the once-secretive PE firm is
remaking its image and changing the buyout game. Here are some key numbers
and facts on Carlyle:
The median size of U.S. venture funds raised in 2006 exceeded $200 million
for the second year in a row, according to industry tracker Dow Jones
VentureOne, reports AP. The 2006 median was $200.6
million, following a record $205.5 in 2005. It hit a low of $75M in 2002.
Private equity performance
was extremely steady with both buyout and venture capital asset classes continued to outperform both the S&P 500 and NASDAQ
markets in the long term, 
2006
was a record year for private equity in both fundraising and investments.
684 PE funds raised a record $432 billion worldwide in 2006, lead by Buyout
and Real Estate funds with $213 billion and $63 billion
respectively.
Venture
capital investments in U.S. surged 12% to $25.5 billion in 3,416 deals in 2006,
at a 10% increase in deal volume, and the highest level of investment since
2001, according to the MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital
Association, based on data from Thomson Financial.
