Louisiana's Venture Capital Deal Climate Is Growing

NEW ORLEANS, April 3, 2014 /PRNewswire/ -- Louisiana entrepreneurial businesses are raising larger amounts of private investment and more companies are receiving private investment, according to a report released today by Graffagnini + Associates. The new report adds to the data in other reports such as the recently released Brookings Institution report showing that New Orleans entrepreneurial startup activity is 56% higher than other metro areas. Louisiana companies are showing an average of a 281% increase in valuation from seed financing to Series A, indicating that companies are healthy and valued highly.  The Louisiana Venture and Angel Capital Report shows a significant amount of money flowing into entrepreneurial projects in the state, providing necessary capital for the entrepreneurs to build and sustain their businesses. The report comes as the sixth annual New Orleans Entrepreneur Week just finished last week in New Orleans, showcasing the incredible entrepreneurial energy in New Orleans.

"Louisiana companies raised a record amount of capital in 2013, showing signs that the trend in larger financings continues for Louisiana," said Mark Graffagnini of Graffagnini + Associates. "The second release of the Louisiana Venture and Angel Capital Report continues to provide the only data-driven, publicly sourced information that has been plugged into a comprehensive report on Louisiana angel and venture capital." Mark Graffagnini added, "This year's report details even more trends that serve as a basis to gauge the private investment environment in Louisiana."

This new information expands on the first report issued by Graffagnini + Associates last Spring. The Louisiana Venture and Angel Capital Report draws on Angel Investor Tax Credit information to determine the number of early stage businesses obtaining angel and venture capital financing. Statistics from Louisiana Economic Development (LED) show 22 companies received tax credits in 2013, jumping from 13 in 2011 and 20 in 2012. Of those, companies in Orleans Parish continued to receive the most angel investor tax credits awarded and saw the highest total volume of investments. 

"Our report found that companies are closing on a significant amount of capital investment, with over $61 million in deal activity in 2013," said Mark Graffagnini.  Sam Peake, who contributed to the research of the report added, "The data indicates an evolving investment ecosystem in Louisiana. Incubators, accelerators, and universities are driving new growth through their business support and research and development, while larger companies are finding Louisiana attractive through incentive programs. If these trends continue, we will see increased entrepreneurship and economic development in Louisiana."

The entire Louisiana Venture and Angel Capital Report can be downloaded at http://graffagninilaw.com. Graffagnini + Associates represented either the investors or company in a large proportion of the deals for which public information is available.

"We're excited about the continued entrepreneurial spirit we see in Louisiana, and we think the numbers indicate an expanding and maturing capital market," said Mark Graffagnini.

Graffagnini + Associates will continue to publish the Louisiana Venture and Angel Capital Report yearly.

Future reports and other entrepreneurial and investment news may be obtained by emailing [email protected].

Graffagnini + Associates, LLC is a law firm focusing on private equity investments, venture and angel capital, mergers and acquisitions, securities law and intellectual property law. Our mission is to keep companies and investors one step ahead of the growth curve. For companies and investors, we often act as outside general counsel, which means we address each of their legal concerns, from formation to employment to sale or acquisition. Our structure allows us to deliver legal services free from the confines of the traditional law firm model. We pride ourselves on efficiency and experience. Contact us for your particular need. http://graffagninilaw.com

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SOURCE Graffagnini + Associates, LLC