Week 01/31/2005 through 02/06/2005

Prepared by: Dante Fichera, CPA

Announcements: Congratulations to the management of Favrille and Stan Fleming and his fellow partners at Forward Ventures for a successful IPO. This reporting period companies based in California operating in the Software industry and that have raised their Series B round of financing led the pack in the amount of venture financing raised. Also, there were seven IPO’s this reporting period.

CapitalHunter.com was able to verify that $192 million of venture capital was invested in 22 U.S.-based companies during this week’s reporting period. The average deal size was approximately $8.73 million. The amount of venture capital invested this period decreased by 18% from last periods $235 million.

Geographically,8 California companies raised $75 million in venture financings which represents 38% of the total venture capital invested this reporting period. The largest private venture financing in California this period was into Dust Networks. Dust Networks raised $22 million and is a Berkeley based provider of wireless mesh networking systems to solution providers, integrators and OEMs in order for enterprise-class monitoring and control applications.

The software sector raised 51% of the venture capital this period. Twelve software companies raised $98 million in venture financing. The largest private venture financing in software sector this period was into Vieo. Vieo raised $15 million and is a Austin, TX based company that is a provider of innovative solutions for end-to-end visibility and control of Microsoft web application service levels and end-to-end real-time management of Citrix applications and infrastructure. These solutions allow IT organizations to satisfy business demands while dramatically reducing cost and complexity.

Companies raising their Series B round of financing led this week’s venture capital activity. Series B financings represented 47% of the total venture capital deployed this period. The largest private venture financing in Series B stage financing this period was into Dust Networks.

The three largest venture deals this period are as follows:

The following Twelve and other unnamed investors funded the above mentioned top three venture capital investments for $72 Million:

A total of 70 equity financings of private and public companies occurred during this reporting period. Each of the 70 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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