Week 01/17/2005 through 01/23/2005

Prepared by: Dante Fichera, CPA

This reporting period companies based in California operating in the Software industry and that have raised their Later round of financing led the pack in the amount of venture financing raised.

CapitalHunter.com was able to verify that $249 million of venture capital was invested in 26 U.S.-based companies during this week’s reporting period. The average deal size was approximately $9.58 million. The amount of venture capital invested this period decreased by 59% from last periods $383 million. During 2004, our preliminary national venture capital estimates revealed that approximately 1,450 venture financings occurred for a total of $17.5 billion. National venture activity during Q4 2004 was approximately $4.7 billion which was 2.1% over Q3 2004 and 13.91% over Q4 2003. For more information feel free to contact our offices or subscribe to our services.

Geographically,6 California companies raised $68.9 million in venture financings. The largest private venture financing in California this period was into Chelsio Communications. Chelsio Communications raised $25 million and is a Sunnyvale based company that is a provider of 10-Gigabit Ethernet server adapters and protocol acceleration technology.

The software sector raised 33% of the venture capital this period. Ten software companies raised $83.05 million in venture financing. The largest private venture financing in software sector this period was into iRise. iRise raised $15.8 million and is a El Segundo, CA based company that is a provider of customized Java based applications for business.

Companies raising their Later round of financing led this week’s venture capital activity. Later financings represented 36% of the total venture capital deployed this period. The largest private venture financing in later stage financing this period was into CHF Solutions. CHF Solutions raised $22.9 million and is a Brooklyn Park, MN based company that is a manufacturer of mechanical pump filtration systems that removes excess fluid to manage fluid overload in cardiac congestive heart failure patients.

The three largest venture deals this period are as follows:

The following fifteen and other unnamed investors funded the above mentioned top three venture capital investments for $63.7 Million:

A total of 43 equity financings of private and public companies occurred during this reporting period. Each of the 43 equity financings are profiled in a weekly report which include venture financings, private placements, secondary offerings, PIPE’s, and IPO’s.

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