Week 01/24/2005 through 01/30/2005

Prepared by: Dante Fichera, CPA

Announcements: Congratulations to Verimatrix and the founders Ross Cooper, David Kay and Bob Kulakowski for closing a venture round with Mission Ventures and Siemens Ventures. My contribution to this effort was helping you guys come up with the company name.

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

CapitalHunter.com was able to verify that $235 million of venture capital was invested in 26 U.S.-based companies during this week’s reporting period. The average deal size was approximately $9.04 million. The amount of venture capital invested this period decreased by 6% from last periods $249 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,9 California companies raised $83 million in venture financings which represents 36% of the total venture capital invested this reporting period. The largest private venture financing in California this period was into Actelis Networks. Actelis Networks raised $23 million and is a Fremont based developer of network (software & hardware) solutions that enable service providers, government agencies and industrial enterprises to deliver high-quality broadband services to customers and/or locations only served by copper.

The software sector raised 36% of the venture capital this period. Eleven software companies raised $84 million in venture financing. The largest private venture financing in software sector this period was into Incipient. Incipient raised $20 million and is a Waltham, MA based company that is a provider of intelligent switch-resident storage software that provides storage services within the fabric, to support continual information storage growth and encourage centralized management and administrative policy control for enterprise-level IT environments.

Companies raising their Series A round of financing led this week’s venture capital activity. Series A financings represented 31% of the total venture capital deployed this period. The largest private venture financing in Series A stage financing this period was into Innovative Micro Technology. Innovative Micro Technology raised $17 million and is a Santa Barbara, CA based company that provides designs services that specialize in MEMS manufacturing.

The three largest venture deals this period are as follows:

The following Twenty Four and other unnamed investors funded the above mentioned top three venture capital investments for $86 Million:

A total of 73 equity financings of private and public companies occurred during this reporting period. Each of the 73 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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