Louisiana companies raised a record $145 million in private investments last year, according to a new report from Cara Stone, a New Orleans-based law firm specializing in private equity, venture and angel capital, mergers and acquisitions.
The funds, if properly accounted, were raised in 34 deals and would put the state among the top locations for venture financing in the U.S., Cara Stone says in its 2017 Louisiana Venture and Angel Capital Report.
The size of private investment has been on an upward trend since 2011, with some fluctuation due to a few large deals in 2014 that skewed the average upwards in that year, the firm notes. On a median basis, both closing and offering deal sizes have remained relatively constant—hovering near $1 million for offering size, and $500,000 to $900,000 for initial closing size.
“Louisiana companies raised a record amount of capital in 2016, showing signs that the trend in larger financings continues for Louisiana,” Cara Stone founder and managing partner Mark Graffagnini says in a statement.
The report, released Wednesday, also examines the state’s Angel Investor Tax Credit Program, which businesses can obtain if designated as a Louisiana Entrepreneurial Business by LED.
The number of angel investment deals under the AITC program has declined for the last two years. Geographically, Orleans and East Baton Rouge parishes have seen the most activity under the program, though the number of companies in both locales have generally increased and decreased in parallel.
In terms of deal activity under the program from 2011 to 2016, the top five parishes are Orleans (87 deals), East Baton Rouge (57), Caddo (21), Rapides (12) and St. Tammany (8). Lafayette and Jefferson parishes had a total of 6 deals during that period.
