Friday, April 20, 2012

Venture Capital Investing in Austin Hits 4-year High

Apartments Plus CardVenture Capitalists are investing in Austin companies again, and at record levels, the Statesman.com reports.  In a sign that the markets are rebounding, there was a combined investment of $274.4 million spread out over nineteen companies, all during the first three months of 2012.

The majority of the investment was in established technology companies who already have a reliable product and revenue stream, but are looking to expand their operations.  The big winner was Drilling Info, a software and services retailer for the oil and gas industry, who received nearly $117 million.  Their top investor was a New York company called Insight Venture Partners, who also gave $40 million to another Austin company, Kinnser Software.  They sell web-based software that allows home healthcare nurses and doctors to access their patients' records remotely. 

Insight's managing director says that Austin is a great place to invest because of its "really good entrepreneurs who are building real companies" for the long-term, not to just resell to a larger company.  Most of these investments will go towards hiring new employees, who will then buy houses or rent Austin apartments, buy new cars, shop at Austin-area establishments, etc, creating a huge boost for the town as a whole.