Week 07/17/2004 through 07/23/2004

Prepared by: Dante Fichera

FREE Q2 2004 San Diego, Colorado and Washington Venture Capital Study now available at: CapitalHunter.com.

Venture capital activity has dropped 45% from last periods strong performance of $401 million. $220 million in venture capital was invested in 25 companies during the period.

In addition, eleven companies began trading on Wall Street with over $1.8 billion raised in equity through IPOs. The eleven IPO’s this reporting period are as follows:

1. McCormick and Schmick's Seafood Restaurants, Inc. for $72 million
2. Dex Media for $1.0082 billion
3. Idenix Pharmaceuticals for $81.2 million
4. Blackbaud, Inc. for $64.8 million
5. Kanbay International, Inc. for $93 million
6. Neurometrix for $24 million
7. Auxilium Pharmaceuticals for $41.3 million
8. Bucyrus for $193 million
9. Lumera Corporation for $41.7 million
10. L.G. Philips for $100 million
11. Top Tankers for $146.63 million

Other notable event this week includes the passage of HR 3574, The Stock Option Reform Act of 2003.

CapitalHunter.com identified that $220 million of venture capital was invested in 25 U.S.-based companies during this week’s reporting period. The average deal size was approximately $8.8 million. The amount of venture capital invested this period decreased by 45% over last week’s $401 million.

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

Geographically,9 California companies raised $118.68 million in venture financings. The largest venture financing in California this period went into Danger, Inc. for $37 million. Danger, Inc. is a Palo Alto based company that develops and produces wireless online digital software, hardware and mobile services that provide Internet access, instant messaging, and e-mail capabilities.

The software sector raised a little over 64% of the venture capital this period. Fourteen software companies raised over $104.28 million in venture financing. The largest software financing was by Danger, Inc.

Companies raising their Series C round of financing led this week’s venture capital activity. Series C companies represented 34% of the total venture capital deployed this period. The largest Series C financing was into Danger, Inc.

To learn more about the equity financings of this week please visit www.capitalhunter.com and obtain a free trial subscription to our service – no obligation.
The three largest venture deals this period are as follows:
  Company Industry Investment
1 Danger Software $37 million
2 Cooligy Instruments and Controls $20 million
3 Safeview Software $16 million


The following eighteen investors funded the above mentioned top three venture capital investments for over $73 million:

1Adams Street Partners
2Battelle Ventures
3DFJ ePlanet Ventures
4Diamondhead Ventures
5Draper Fisher Jurvetson
6Granite Ventures
7H.I.G. Ventures
8Institutional Venture Partners
9InVision Technologies
10Mayfield
11Mobius Venture Capital
12Mohr Davidow Ventures
13Novak Biddle Venture Partners
14Paladin Capital
15Redpoint Ventures
16SOFTBANK Capital Partners
17Stanford University
18Venture Strategy Partners

A total of 57 worldwide equity financings of private and public companies occurred during this reporting period. Each of the 57 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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Features
Venture Capital Activity Highlights
Venture Capital Investments by Region
Venture Capital Investments by Sector
Venture Capital Investments by Round
Top Three Venture Capital Investments
Venture Capitalists Funding the Top Three Deals
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