Investments in NJ continue five-year slide
JANUARY 17, 2015 LAST UPDATED: SATURDAY, JANUARY 17, 2015, 1:21 AM
BY MELANIE ANZIDEI
STAFF WRITER |
THE RECORD
* New Jersey’s fourth-quarter figures buck the national trends
Venture capitalists invested $320 million in New Jersey companies last year, a decline of $2 million from the previous year and an extension of a downturn in investments in the state that began in 2008. The falloff is in marked contrast to a surge in VC investing nationally that rose to its highest level in 2014 since the end of the dot-com period.
Investments in the Garden State have dropped by about $400 million since the recession, with the drop slowing in recent years, according to a report released Friday.
During the fourth quarter, about $51.9 million was put into 11 deals in New Jersey, a more than $100 million drop from the quarter prior. Only one of last quarter’s deals included a North Jersey company. Teleservices Solutions Holdings LLC, a telecommunications company in Montvale, received $540,000 early-stage investment.
Investors poured the most money into New Jersey’s medical devices and equipment industry. Venture capitalists invested $22.4 million in the state’s medical device industry during the fourth quarter. For the full year, that sector had nearly $81.7 million in investments, making it the most-invested industry in New Jersey last year.
The retail and distribution sector was second with $80 million invested last year. Biotechnology, which has held such promise for job growth in the state, was third with $41.6 million in investments by year’s end.