Venture 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.
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
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.