Prepared by: Dante Fichera

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With increasing inflation figures, the Federal Open Market Committee (FOMC) is expected to raise the discount rate sooner and at a sharper pace than originally anticipated. While this has caused Wall Street investors to be cautious, venture capitalists have charged the hill with a 44% increase in investment activity over the previous week.

Capital Hunter identified that $468 million of venture capital was invested in 44 U.S.-based companies during this week’s reporting period. The average deal size was approximately $10.64 million. The amount of venture capital invested this period increased by 44% over last week’s $326 million.

What’s Hot: California, Software, and Series C financings.

Geographically,12 California companies raised $141.2 million in venture financings. The largest venture financing in California this period was into Good Technology, Inc. for $45 million. Good Technology, Inc. is a Sunnyvale based company that provides a wireless enterprise e-mail and data system that includes software, services, and handhelds for mobile workers.

The software sector raised 35% of the venture capital this period. 20 software companies raised over $172 million in venture financing. The largest venture financings was by Greenway Medical Technologies, Inc. for $20 million. Greenway Medical Technologies, Inc. is headquartered in Carrollton, GA and is a provider of a Web Browser-based integrated ambulatory software solution for physicians' practices - including integrated practice management, electronic medical records (EMR) and managed care functionality.

Companies raising their Series C round led this week’s venture capital activity. Series C companies represented 32% of the total venture capital deployed this period. The largest Series C financing was into Last Mile Connections, Inc. for $28 million. Last Mile Connections, Inc. which is a developer of business-to-business exchange and online auction operation that aims to make connections easier for providers of last-mile with metro access in 40 cities nationwide.

Airpax Corp. was probably the largest financing this week with $78.5 million raised from William Blair Capital Partners, Norwest Equity Partners, and the round was supported by a line of credit. As we were unable to confirm if the entire amount raised by Airpax Corp. was equity or if part of the round was debt, we excluded this financing from our calculation. We will update you next week on the details. The following thirteen investors funded the above mentioned top three venture capital investments in excess of $99 million:

A total of 71 equity financings of private and public companies occurred during this reporting period. Each of the 71 equity financings are profiled in a weekly report as well as over 30,000 other historic equity financings that you can obtain as a subscriber.

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www.capitalhunter.com is a financial information service company that collects and disseminates data on investors and their corresponding equity financings. You can obtain access to the details of the companies and investors included in this newsletter and over 30,000 historic financings at www.capitalhunter.com

Free Q1 2004 Venture Capital Reports