The amount of venture capital raised by businesses in Texas is down slightly from what was reported in 2013. Companies reportedly raised $348.7 million in venture capital during the first quarter of 2014. The amount raised during the first quarter of 2013 was $546.4 million. The amount of venture capital raised during the fourth quarter of 2013 was $344.63 million.
The amount of venture capital invested nationwide, however, was up about 12 percent during the first quarter of 2014 as compared to the first quarter of last year. Still, there was a drop from the fourth quarter of 2013 to the first quarter of this year. Investments in software involved $4 billion in investments across the country and this was the largest sector nationally.
Venture capital is the money that is provided for relatively high-risk investments. This clearly can apply to business startups. It’s not often clear whether a startup business will make a go of it and that’s why locating venture capital can be so important. Financing can be particularly challenging for a startup business in any case.
It’s because such ventures contain a number of risks that the advice and counsel of experienced business formation attorneys is required. These attorneys can make certain that the startup plan is one that can realistically survive in a competitive market. Attorneys may also need to take a part in making certain that financing of the company is appropriate. It must also be remembered that financing is only one of many important components in starting a business.
Though there were 951 investment deals rendered in the latest report across the country, 41 of those deals were in Texas. We hope to see even more deals completed during the remainder of 2014.
Source: Texas TechPulse, “Texas Companies Raise $348.7M In Venture Capital In Quarter,” April 21, 2014