FOR IMMEDIATE RELEASE

Contacts:
John Taylor, NVCA 703-524-2549, ext. 17
or Channa Brooks, The Weiser Group 917-579-5955,
or George Zouvelos, The Weiser Group
917-613-3320,

New Study Documents 4.3 Million Jobs and $736 Billion in Annual Revenues Created by Venture Capital Investments

May 2, 2001 New York City, NY - A new economic impact study conducted by WEFA and released today by the National Venture Capital Association (NVCA) revealed that 4.3 million new jobs were created by US companies originally backed by venture capital. Those companies generated $736 billion in revenues in the year 2000. According to the study, venture capital-backed companies represented 3.3% of the nation's total jobs and 7.4% of Gross Domestic Product in 2000.

Regionally, the Southeast experienced the greatest job creation with 1 million jobs represented by venture-backed companies in 2000, followed by California and the Northeast. The consumer industry realized the largest number of jobs created as a result of venture-backed companies at more than 1.1 million in 2000, followed by the computer and medical/health industries. California saw the most venture capital-created revenues with $179 billion in 2000, followed by the Southeast and Southwest. The most significant revenue impact occurred in the computer industry with $204 billion in revenues generated in 2000, followed by the consumer and medical/health industries.

The study, the first of its kind, was commissioned by the NVCA and released in New York City at its annual meeting held at the Waldorf=Astoria Hotel. The companies in the WEFA research did not include those that were acquired and absorbed into other organizations, which would raise the totals by at least 30%, to 5.6 million jobs and $956.8 billion in revenue.

"If you examine our history, venture capital has quietly but continually played a paramount role in nourishing the US economy, both in good and bad times, by bringing concepts and business models to life," said Mark Heesen, President of the NVCA. "This critical mass of economic contribution is the result of more than 20 years of investment activity, not just the visible surge of the past five years, " added Heesen.

"Taking a long term view of venture capital shows amazing success stories," reports Andrew Hodge of WEFA. "There are eleven venture-backed companies founded in the 1970's and 1980's that represent today over $10 billion in sales each, such as Intel, Compaq, and Home Depot. Not only have these organizations contributed to the economy financially but they have often provided technological and business innovations that have improved productivity and the quality of life in the US," added Hodge.

YEAR 2000 JOBS REPRESENTED BY VENTURE BACKED US COMPANIES By Region
Region	Jobs Created
Southeast (AL, FL, GA, KT, MI, NC, SC, TN)	1,041,495
California	978,877
Northeast (CT, MA, ME, NH, NJ, NY, RI, VT)	680,601
Midwest (IA, IL, KS, MN, MI, MO, ND, NE, OH, SD, WI)	571,379
Southwest (AK, AZ, LA, NM, NV, OK, TX)	510,187
Mid-Atlantic (Washington DC, DE, MD, PA, VA, WV)	231,128
Northwest (AK, HI, OR, WA)	174,884
Rocky Mountains (CO, ID, MT, UT, WY)	94,581
TOTAL	4,283,132
**NY State (Included in Northeast)	220,543

YEAR 2000 JOBS REPRESENTED BY VENTURE BACKED US COMPANIES By Industry
Industry	Jobs Created
Consumer	1,126,462
Computer Related	850,187
Medical/Health	646,429
Communications	293,722
Industrial/Energy	265,238
Electronics	237,308
Biotechnology	61,090
Other	802,696
TOTAL	4,283,132

YEAR 2000 REVENUES GENERATED BY VENTURE BACKED US COMPANIES By Region
Region	2000 Revenues (Billions $)
California	178.99
Southeast (AL, FL, GA, KT, MI, NC, SC, TN)	146.26
Southwest (AK, AZ, LA, NM, NV, OK, TX)	128.46
Northeast (CT, MA, ME, NH, NJ, NY, RI, VT)	106.85
Midwest (IA, IL, KS, MN, MI, MO, ND, NE, OH, SD, WI)	85.82
Northwest (AK, HI, OR, WA)	32.38
Mid-Atlantic (Washington DC, DE, MD, PA, VA, WV)	32.29
Rocky Mountains (CO, ID, MT, UT, WY)	24.88
TOTAL	735.93
**NY State (Included in Northeast)	43.42

YEAR 2000 REVENUES GENERATED BY VENTURE BACKED US COMPANIES By Industry
Industry	2000 Revenues (Billions $)
Computer Related	204.24
Consumer	131.89
Medical/Health	80.29
Communications	60.94
Industrial/Energy	55.00
Electronics	54.42
Biotechnology	14.55
Other	134.60
TOTAL	735.93

"Venture capital is a financial system that sets the United States apart from other developed economies. In no other country in the world is there such a clear cut structure in which third-party funds can be raised and distributed to grow good ideas into productive businesses, sparking innovation, creating jobs and improving productivity," Heesen concluded.

The WEFA study on the Economic Impact of Venture Capital was commissioned by the NVCA and was conducted in the first quarter of 2001. A database of originally ventured companies in the United States going back to 1970 was mapped to the current companies in the Dun and Bradstreet Database to determine jobs and revenues represented in the Year 2000. The data was then cut by geography and industry. Additional phases of research, which will measure venture capital contribution to technological progress and quality of life, are set to be conducted later this year.

The National Venture Capital Association (NVCA) represents more than 400 venture capital and private equity firms. NVCA's mission is to foster the understanding of the importance of venture capital to the vitality of the U.S. and global economies, to stimulate the flow of equity capital to emerging growth companies by representing the public policy interests of the venture capital and private equity communities at all levels of government, to maintain high professional standards, facilitate networking opportunities and to provide research data and professional development for its members. For more information about NVCA, please visit www.nvca.org.

WEFA is one of the world's leading economic information and consulting firms. Staffed with more than 200 economists, WEFA collects and analyzes data from around the globe, monitors developments in over 152 countries, provides objective, highly regarded, detailed analyses of economic, financial and industry activity and provides clients with custom solutions for their information needs. Founded as Wharton Econometric Forecasting Associates in 1963 by Lawrence R. Klein, the 1980 Nobel Laureate, WEFA merged with Chase Econometrics in 1987. Among their more than 1200 clients WEFA enjoys a worldwide reputation for the highest standards, analytical power and industry insights.

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