New Mexico is Awash in Venture Capital

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There's no doubt about it -- venture capital is sweeping across the nation, even the world, like it hasn't done for nearly five years. It's popping up in unexpected places, like New Mexico.

Call it a "victory for the spirit of risk-taking" - or, if you prefer, "the perfect mating of risk-taking New Mexicans and government agencies whose role is to support business people who live with risk on a daily basis."

Whatever you call it, what will have transpired by this year's end in New Mexico is a win-win for the state's venture capitalists and state government. Close to $140 million in venture-capital funds will have been invested in New Mexico technology companies - a big leap over 2002, 2003 and 2004, when less than $30 million per year was invested. The money includes matching public funds from the State Investment Council.

Here's even better better news: The investment matches a national trend. The trend is significant. When it comes to venture capitalists and the money they need, there is no tomorrow.
While the $140 million this year from the State Investment Council is a big number by New Mexico standards, keep in mind that the first three-quarters of the year saw just over $16 billion in venture capital investments nationally. New Mexico's investments are in companies with a state presence, which then invest in New Mexico start-ups and other technology companies.

In the last three years, a number of incredibly talented, motivated and experienced capitalist high-fliers have moved to New Mexico. The state's connections to Silicon Valley, Austin and many other places friendly to risky ventures has solidified markedly.

This is no small accomplishment. New Mexico is in the game.