The bottom line on venture capital investments in Ottawa during 2004 was a mixed one—more deals, but little change in the overall amount invested in local start-ups.

According to data released by OCRI, Ottawa-based companies attracted over $248 million in venture capital in 2004. In the first three quarters of the year, local companies attracted $170 million. In Q4, an additional $78 million flowed into Ottawa businesses.

OCRI said the deal count was up by more than 44 per cent over 2003 and reached its highest level since 2002.

"Companies have to work harder and be stronger in order to attract financing today," OCRI president and CEO Jeffrey Dale said in a statement. "The fact that Ottawa is seeing such a large increase in deals is a leading indicator of the quality of start-ups and executives that make up our technology community."

OCRI said the 33 financing deals were equally distributed throughout most of Ottawa's tech clusters. Software and wireless were the dominant investment focus.

"As Ottawa's technology sector continues to grow and gain momentum, it is critical for our next generation of companies to have reliable access to sources of investment capital," Dale continued.

One of last year's winners was Nakina Systems, which landed a US$2.5 million investment from MMV Financial.

"They liked our ability to generate revenues, our cost management, and our unwavering focus on customer needs," said Nakina president and CEO Dave Vicary. "I know Nakina is not alone in this regard, and my feeling is that local companies throughout the city will show solid signs of recovery in 2005 as everyone's renewed focus on these critical success factors begin to pay dividends."