The software industry is the major beneficiary of the ever- growing amount of venture capital splashing liquidly around the US, according to a Coopers & Lybrand survey published late last month. Technology companies over all secured 62% of the $12.2bn VCs invested last year, but software companies received $2.6bn over all, followed closely by networking and communications companies ($2.4bn), and healthcare ($1.1bn). That $12.2bn is up 20% in 1997 over 1996, and 83% up from 1995, with 24% more companies being financed, at 2,690 deals. Indeed, despite Asian economic rumbles in the period, the fourth quarter of 1997 was the biggest ever, with 765 firms getting $3.6bn worth of backing. For all those who thought the internet gold rush was over: Coopers says there were 490 new such firms getting funding last year, scooping up a total of $2.1bn. And they wonder why the US technology sector is the world’s strongest.
