Prepared by: Dante Fichera

Q2 2004 Life Sciences Venture Capital Study is now available for free at: CapitalHunter.com.

Venture capital activity continues its downward spiral by 39% as venture capitalists come off a short week. A mere $152 million in venture capital was invested during the period.

Total national venture capital activity is flat for Q2 2004 compared to Q1 2004 and up 15% over Q2 2003.

CapitalHunter.com identified that $152 million of venture capital was invested in 16 U.S.-based companies during this week’s reporting period. The average deal size was approximately $9.5 million. The amount of venture capital invested this period decreased by 39% over last week’s $250 million.

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

Geographically,8 California companies raised $72.1 million in venture financings. The largest venture financing in California this period went into PolyFuel for $18.4 million. PolyFuel is a Mountain View based company that develops micro Direct Methanol Fuel Cells with instant recharge and longer run time for mobile applications; next generation power systems for portable consumer electronic devices laptop computers, wireless phones, and PDAs.

The software sector raised a little over 41% of the venture capital this period. Seven software companies raised over $62 million in venture financing. This reporting period two software venture financings tied for the largest financings with $15 million invested into Convio, Inc and Kasenna. Convio helps nonprofit organizations use the Internet to more effectively attract, motivate and retain constituents to donate and provide other types of support. Provides a comprehensive suite of Internet software and services for fundraising, marketing, special events management, Web site content management, advoit, and email. Kasenna delivers broadband infrastructure software that enables network service providers, content providers and enterprises to build commercial-grade VOD video-on-demand and streaming media networks and applications.

Companies raising their Series C round of financing led this week’s venture capital activity. Series C companies represented 42% of the total venture capital deployed this period. The largest Series C financing was into PolyFuel.

The following twenty three investors funded the above mentioned top three venture capital investments for over $60 million:

A total of 37 worldwide equity financings of private and public companies occurred during this reporting period. Each of the 37 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 theCapitalHunter.com searchable database.

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