The value of venture capital deals in Kansas increased in the first quarter for the third consecutive time, according to the National Venture Capital Association and PricewaterhouseCoopers MoneyTree report compiled by Thomson Reuters.
The report shows $6.61 million was invested in seven companies. Kansas City, Kan.-based Zave Networks raised the most among the six companies, for a total of $3 million, according to the report.
The quarterly investment total is up from the amount of money invested in the two previous periods: three deals totaling $300,000 in the first quarter of 2009 and six deals totaling $2.83 million in 2010.
" (2009 and 2010) just weren't good years for Kansas," said Trish Brasted, CEO of Wichita Technology Corp. and a partner in Midwest Venture Alliance, an area group of angel investors.
Brasted said she expected an increase in first quarter venture capital because MVA investors have begun looking at new deals and companies funded by MVA investors are having more success raising venture capital.
"Investors are feeling a little more confident in the economy.... The same holds true for venture capital firms," she said. "Hopefully, 2011 will be a good year compared to 2009 and 2010."
Nationally, the number of deals was down, but the total amount of money invested was up.
In the first quarter 2011, there were 736 deals totaling $5.9 billion. In first quarter 2010, there were 787 deals totaling $5.1 billion.