Thursday, July 01, 2004
Venture capital fund gets $12 million in pledges from 3 firms
The Roanoke-New River region lacks a healthy supply of money for new-business investment, business leaders have said.
jeff.sturgeon@roanoke.com 981-3251
A new venture capital fund has been formed with $12 million to back technology businesses in the Roanoke-Blacksburg area.
The June 11 creation of the Roanoke-New River Valley Investment Fund LP, confirmed Wednesday by fund manager Third Security LLC of Radford, could foreshadow a brightening business climate in Western Virginia.
"We're looking forward to making investments that are not only beneficial to the investors, but also the economic welfare of the valleys," said Dixon Low, a senior managing director.
Meanwhile, progress is evident on a parallel alliance of six existing East Coast private investment firms, which will consider business investments in the Roanoke and New River valleys. They have conceptually agreed to earmark $43 million for such deals, according to details released in February.
Wayne Hunter, a Richmond-based managing partner with Harbert Venture Partners, said the group, called the Valleys Investment Consortium, met in Roanoke Wednesday and will continue the meeting today.
"There's some tremendous firepower when you add everybody together as far as investments," Hunter said.
Both venture initiatives were announced by Carilion Health System and the Virginia Tech Foundation.
The Roanoke-Blacksburg region is considered strong in technology development and is home to entrepreneurs trying to bring technology to market. But the region lacks a healthy supply of money for new-business investment, business leaders have said.
Mike Drzal, of the Blacksburg office of the LeClair Ryan law firm, said he is elated that the new venture capital fund was formed by Carilion and the Tech Foundation, which pledged $5 million each, and Third Security, which pledged $2 million.
The new fund not only helps the business climate, but its formation also dovetails with a two-day venture capital forum scheduled this fall in Roanoke, Drzal said.
Virginia's Technology Capital Access FORUM is scheduled for Oct. 27 and 28 at Hotel Roanoke.
Hosts Virginia Tech and the New Century Technology Council have raised the stakes for this year's conference by staging a business plan competition with a $10,000 prize.
The event offers an education in the latest venture capital trends, speakers, networking and a look at emerging companies. Entrepreneurs whose business plans impress a panel of judges will describe their plans to an audience of venture capitalists.
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