VENTURE CAPITAL ACTIVITY HIGHLIGHTS

Where's the Beef? Angel investors have all but stopped making investments in start-ups companies, and venture capitalists are making investments but at a much slower pace than in prior years. In Q3 2003 venture capitalists invested in a total of 314 companies for a total of $3.404 billion. The total venture capital invested during Q3 2003 is down 13.01% from Q2 2003 and 12.57% from Q1 2003 numbers. The following graph summarizes venture capital activity in the United States during Q3 2003:

Overall, venture capitalists invested approximately $418 million this week. This is an increase of 100% over the prior week. A total of 22 companies raised venture capital. The average deal size was approximately $19 million. The largest geographic recipient of venture capital was Massachusetts based companies to the tune of $120.1 million. This represented 28.7% of total venture financing. The manufacturing sector received the biggest chunk of venture capital, totaling $155.5 million. Later stage companies received 67.21% of total venture capital to the tune of $281.25 million.

EQUITY INVESTMENT HIGHLIGHTS (includes venture capital)

Total equity financings in the United States increased this reporting period by 89% to $564.4 million, compared to last week's $299 million. Below are straightforward graphs so that you can quickly see how the equity investments in the United States were distributed by geography, industry and stage of development:

EQUITY INVESTMENTS BY GEOGRAPHY

Note: States that received equity funding less than $15 million was included with the OTHER category.

California based companies raised 27% of the total $564.4 million in equity financings in the United States this past week. In line with our data analysis results, it was ascertained that the largest equity based financing in California was through an IPO by RedEnvelope:

EQUITY INVESTMENTS BY INDUSTRY

Note: States that received equity funding less than $30 million was included with the OTHER category.

Manufacturing companies received 29% of the total $564.4 million in equity raised in the United States this period. It was found that the largest equity financing was in the manufacturing sector this reporting week. Below is more information about the company with the largest equity financing in this sector:

EQUITY INVESTMENTS BY STAGE OF DEVELOPMENT

As can be seen in the above pie chart, later-stage privately held companies raised 52% of the equity in this reporting period. The largest later stage transaction this period was completed by Critical Therapeutics, Inc. as highlighted below:

CAPITAL MARKETS HIGHLIGHTS

Below you will find a breakdown for this reporting period of significant debt and equity financings in the United States, Canada and internationally:

NOTE: For complete detailed listings of newly funded companies, their funding amounts, the corresponding investor(s) and their associated contact information, as well as other highly pertinent funding related information, please visit our Web site and sign up for only $29 per quarter at: www.capitalhunter.com

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