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
Health care 15%
Medical technology 7%
Source: "Venture Capital Survey," Coopers & Lybrand, New York City, February 1995.* * *