By Mark Green
The Lane Report
Start-ups in Lexington and Central Kentucky received nearly $84 million in funding in 2012 and hired more than 300 people. The Lexington Venture Club and other area economic development officials recognized the recipients and in an annual “who got the money” celebration last week.
The event recognizes and encourages the “early stage” companies in the Bluegrass region. There were 87 respondents to the Lexington Venture Club’s annual survey to report their fundraising and business operation activities.
Their funding came from the following categories:
Venture capital – $18.5 million
Angel investments – $17 million
Strategic partnerships – $13.6 million
Federal funds – $11.9 million
Family and friends – $11.4 million
State funds – $11.1 million
Other – $0.1 million
Central Kentucky start-ups hired 304 people in 2012, of which 201 were full-time and 103 were part-time workers. That brought total employment in the sector to 823 people. The average salary for all full-time workers is $68,067.
The reporting start-ups produced revenue of $141.4 million in 2012.
Every year the Lexington Venture Club recognizes the entrepreneurial companies in the Bluegrass region that are contributing to the long-term growth and prosperity of the community. These entrepreneurs are viewed as the mechanism for growing new businesses and jobs the form the basis for the knowledge-based economy of the community.
Industry sectors that got funding include: energy and biomass; education & media; biotechnology & healthcare; advanced manufacturing; IT & software; business services; and food & consumer products.
After a significant dip from 2007 to 2008 when the economic crisis and recession hit, annual funding figures reported to the Lexington Venture Club have increased annually. The 2011 total was approximately $70 million. The 2010 total was about $65 million. The 2009 total was approximately $48 million, and the 2008 total was about $38 million.
The Lexington Venture Club meets every other month on the third Wednesday at 11:30 a.m. at the Hyatt Regency Lexington. Meetings the rest of 2013 will be March 20, May 15, July 17, Sept. 18 and Nov. 20. More information is available by calling or emailing Stacy Lackey at (859) 225-5005 or s[email protected], or emailing [email protected].