Bailes says in the last two years, he estimates at least a half dozen venture firms have either started here or opened new offices in the region. As in the past, the Puget Sound remains the dominant area for receiving venture capital. Software also remained strong, with nine companies receiving venture funds. Five communications companies and three biotech firms also garnered cash. Surprisingly, the state's hottest company was Issaquah-based Pet's Choice, which currently runs 17 veterinary clinics in Washington state and one in Tulsa, Okla. and is hungry to acquire more.
Interest is pretty high.
The Redmond-based firm is in its fourth round of venture funding and has been a state favorite among venture capital groups. Another surprise among the big winners was Briazz, the sandwich cafe and commissary concept chain started in 1995 by Seattle's Victor Alhadeff. The money will be used to expand the number of cafes in the company's current markets of Seattle, San Francisco and Chicago, while opening locations in Los Angeles, according to Alhadeff. Bailes says he expects Northwest companies to gain an increasing share of the venture capital in 1998. Obviously, that depends on the market.