Report cites growth in VC-backed N.H. firms



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New Hampshire had the fourth-fastest growth rate in the nation for venture-backed company revenue between 2003 and 2005, according to a study by the National Venture Capital Association. The report, conducted by Waltham, Mass.-based Global Insight, indicates revenue for venture-backed companies in the Granite State increased by a compounded annual growth rate of 14.2 percent between 2003 and 2005, from $11.4 billion to $14.9 billion. The states yielding the highest amount of venture capital generated revenues included California and Massachusetts. California’s growth increased by 12.9 percent and Massachusetts’ by 10.6 percent. Employment at New Hampshire’s venture-backed companies increased at a compounded annual growth rate of almost 9 percent, from 55,000 in 2003 to 66,000 in 2005, according to the report. According to statistics collected by the PricewaterhouseCoopers-sponsored MoneyTree survey and used by the new report, a total investment of $403.4 million in venture capital monies was invested in 83 deals at 60 New Hampshire companies between 2003 and 2005. Nationally, venture-backed companies outperformed their non-venture counterparts between 2003 and 2005 with a 4.1 percent annual growth rate in jobs and an 11.3 growth rate in sales, compared to 1.3 percent and 8.5 percent growth rates respectively in private companies, the report found. According to Mark Heesen, president of the National Venture Capital Association, venture investment represents 0.2 percent of the U.S. gross domestic product while venture-backed companies account for 17 percent of GDP. - TRACIE STONE Edit ModuleShow Tags