Venture capitalist investments in companies developing Internet-related software, hardware and services doubled in 1997 to $US1.88 billion, according to a recent Price Waterhouse LLP survey.
Both the total dollars and number of companies receiving investments increased, proving that the Internet market is not saturated, and instead is a key driver of overall investment growth, Susan Gore, Internet partner in the San Jose, California, office of Price Waterhouse, said in a statement.
Internet-related companies had the highest growth rate of any industry segment in 1997 with dollar investments increasing 103% vs. 27% for all other industries including other high-tech investments, Gore said. From 1995's $134 million, investment in Internet-related companies increased 1,300 percent to reach the 1997 figure.
The number of Internet companies receiving venture capital funding increased 61% compared to 26% for all other industries, according to Price Waterhouse.
An average of 500 venture capital firms are surveyed each year for the Price Waterhouse National Venture Capital Survey. More information can be obtained at Price Waterhouse's web site at http://www.pw.com/vc/.