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Venture Capitalists Invest $58.8M in New Mexico Companies

ALBUQUERQUE, NM; September 19, 2008 – The New Mexico Venture Capital Association (NMVCA) last night released the results of its quarterly survey of venture capital and private equity financing in New Mexico at the Coronado Ventures Forum Program on the "State of the VC Industry," announcing that 10 New Mexico companies received $58.8 million in financing during the second quarter of 2008. This represents the 2nd highest level of investment in a quarter since NMVCA began tracking investments in 2006, and ties the highest number of investment transactions in a quarter.

"$52M in investment capital in one quarter, including 6 new Series A deals that averaged over $5 million each, is a strong statement about the state of the market here in New Mexico," said Sally Corning, NMVCA Board Member and Partner of Sun Mountain Capital. "The larger Series A rounds are part of an interesting trend of companies recognizing the need to take on more capital now as the time it takes to exit has been stretching out nationwide."

The investments in Q2 of 2008 included:

  • 6 Series A (early stage) rounds for $31.1 million
  • 2 Series B rounds drawing $17.2 million in capital
  • 2 Series C or later rounds totaling $10.5 million

"The smaller B and C rounds relative to what we have seen in the past is an interesting trend," said Moritz Schlenzig, NMVCA Board Member and Partner of Mesa Capital Partners. "With today's economic conditions, however, and the decreasing prospects for quick exit opportunities, these companies are clearly thinking ahead and taking on additional cash now."

The survey is conducted by the NMVCA among its members and other investing entities within New Mexico. Survey results are collected and aggregated by the law firm of Brownstein Hyatt Farber Schreck, LLP on behalf of the NMVCA and individual survey results remain strictly confidential.

About NMVCA

The New Mexico Venture Capital Association (NMVCA) was formed in 2004 to bring investment professionals together for the betterment of the state's private equity and venture capital community. The NMVCA facilitates intra-industry communication, provides a unified public voice, sponsors and promotes public policy initiatives, gathers statistics on New Mexico venture capital investments and educates potential institutional limited partners. Membership is open to professionally-managed private equity or venture capital firms with cumulative assets under management of at least $2.5 million and which have a demonstrated interest in investments in New Mexico. Current NMVCA members include: Altira Group, Epic Ventures, Flywheel Ventures, Fort Washington Capital Partners, International Venture Fund, Mesa Capital Partners, New Mexico Community Capital, Pharos Capital, Sun Mountain Capital, Tullis-Dickerson & Company, Verge Fund, Vestor Partners, Village Ventures, and vSpring Capital.

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