Prepared by: Dante Fichera

Venture capital activity hits high water mark of Q2 2004 with over $582 million in investments. Venture capital investments continue to climb this week with another surge of 41%. $582 million was raised primarily by California based software companies. In addition, six companies began trading on Wall Street with over $384 million raised through IPOs.

The six IPO’s this reporting period are as follows: Infosonics, Metabasis Therapeutics, Radiation Therapy Services, Blackboard, Leadis Technology, Inc., and ADESA, Inc.

CapitalHunter.com identified that $582 million of venture capital was invested in 33 U.S.-based companies during this week’s reporting period. The average deal size was approximately $17.64 million, which is the highest average deal of 2004. The amount of venture capital invested this period increased by 41% over last week’s $414 million.

What’s Hot: California, Software, and later stage financings.

Geographically,16 California companies raised $264.23 million in venture financings. The largest venture financing in California this period went into Mahi Networks for $70.1 million. Mahi Networks is a Petaluma based company that develops an optical transport switch router and solutions to simplify metropolitan communications infrastructure.

The software sector raised 45% of the venture capital this period. Thirteen software companies raised over $256.88 million in venture financing. The largest venture financing was by RiskMetrics, provides financial analytics and wealth management solutions.

Companies raising their later rounds led this week’s venture capital activity. Later stage companies represented 57% of the total venture capital deployed this period. The largest later stage financing was a recapitalization of RiskMetrics.

The following eight investors funded the above mentioned top three venture capital investments for over $236.1 million:

A total of 78 worldwide equity financings of private and public companies occurred during this reporting period. Each of the 78 equity financings are profiled in a weekly report which include venture financings, private placements, secondary offerings, PIPE’s, and IPO’s. Also available is access to over 30,000 other historic equity financings through the CapitalHunter.com searchable database.

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