Good news. Although last year's rising interest rates made bank financing unappealing, venture capitalists provided an attractive alternative. Venture capitalists invested more than $1.3 billion in U.S. companies during the fourth quarter of 1994 alone. Most of those dollars -- 55% -- went into late-stage, mezzanine, and leveraged-buyout financings.

How the venture capitalists spent their dollars:

Percentage of total VC dollars by industry

Other 20%

Software 18%

Health care 15%

Communications 14%

Biotechnology 10%

Electronics 10%

Medical technology 7%

Retail 6%

Source: "Venture Capital Survey," Coopers & Lybrand, New York City, February 1995.

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