Hawaii demand for venture capital expected to rise | The Honolulu Advertiser

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Hawaii demand for venture capital expected to rise | The Honolulu Advertiser | Hawaii's Newspaper

Updated at 12:41 p.m., Wednesday, January 23, 2008

Hawaii demand for venture capital expected to rise

Advertiser Staff

Demand for venture capital among Hawai'i companies is expected to rise to $146.9 million over the next three years, according to a report released today by the Hawaii Institute for Public Affairs.

Among other key findings in the report:

Venture capital activity is likely to increase in the next few years in Hawai'i driven by maturing companies in need of larger rounds of capital.

Venture capital fund managers have begun the process of raising additional capital. The study found 10 fund managers with track records of investing in Hawai'i with plans to raise a combined $128 million in the next two years.

"We undertook this study to inform government and private sector about capital formation in Hawai'i," said HIPA president and Chief Executive William Kaneko. "Questions about the size of demand for venture capital in Hawai'i and determine how much growth could be reasonably projected had been commonly asked, but not evaluated by an independent organization."

Venture capital in the report is defined in the report as private equity investments by a professional.

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