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Venture Capitalists Invest $21.1M in New Mexico Companies

ALBUQUERQUE, NM; December 12, 2008 – The New Mexico Venture Capital Association (NMVCA) released the results of its quarterly survey of venture capital and private equity financing in New Mexico, announcing that 5 New Mexico companies received $21.1 million in financing during the third quarter of 2008. This represents a significant drop-off in both the number of deals closed and dollars invested from the 2nd quarter of 2008. The number of transactions was also substantially lower than the same period in 2007, but the aggregate investment amount was higher than Q3 2007.

"With the extraordinary circumstances occurring in the financial services sector and the broader economy during the third quarter, a reduction in investment activity was almost inevitable, as venture firms endeavor to understand the full impact of these changing conditions," said Stephanie Spong, NMVCA President and Principal of Epic Ventures. "In all likelihood, we will see this 'pausing' in investment activity continue through the 4th quarter, but will hopefully see a return to greater investing activity in 2009 after investors come to grips with current market and economic conditions."

The investments in Q3 of 2008 included:

  • 3 Series A (early stage) rounds for $0.65 million
  • 2 Series B or later rounds drawing $20.4 million in capital

"The investment activity in Q3 was clearly dominated by one or two larger deals. The remaining companies who did receive funding in Q3 generally raised much smaller rounds of capital," said Tom Stephenson, NMVCA Board Member and Partner of Verge Fund. "These smaller rounds probably reflect the uncertainty that investors and entrepreneurs see in the markets today, but nonetheless provide critical capital to allow these companies to achieve specific milestones before going out for follow-on rounds of investment next year."

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.


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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