Week 10/18/2004 through 10/24/2004

Prepared by: CapitalHunter.com Staff

What’s Hot this reporting period are venture backed companies based in California operating in the Software industry and that have raised their later round of financing.

On Wall Street CapitalHunter.com identified the following IPO’s and Secondary Offerings:

1. U-Store-It Trust had its initial public offering this week for $393.6 million and trades under the ticker YSI.
2. Tower Group Inc. had its initial public offering this week for $110.5 million and trades under the ticker TWGP.
3. Sunstone Hotel Investors Inc. had its initial public offering this week for $358.7 million and trades under the ticker SHO.
4. EMC Atmos Energy Corporation raised additional capital through a secondary offering for $321.8 million and trades under the ticker ATO.
5. Arch Coal raised additional capital through a secondary offering for $211.6 million and trades under the ticker ACI.

CapitalHunter.com was able to verify that $234 million of venture capital was invested in 23 U.S.-based companies during this week’s reporting period. The average deal size was approximately $10.17 million. The amount of venture capital invested this period decreased by 24% from last week’s $308 million.

Geographically,9 California companies raised $118.2 million in venture financings. The largest private venture financing in California this period was into Infinera raised $52 million. Infinera is a Sunnyvale based company that develops equipment for the optical network telecommunications industry.

The software sector raised 50% of the venture capital this period. Thirteen software companies raised $116.15 million in venture financing. Motricity a North Carolnia based company was the largest financing in this sector raising $27 million in venture financing. Motricity is a provider of mobile content, delivering best-of-breed solutions to consumers, strategic partners and content providers.

Companies raising their later stage of financing led this week’s venture capital activity. Later stage financings represented 50% of the total venture capital deployed this period. The largest later stage financing was into Infinera.

The following sixteen and other unnamed investors funded the above mentioned top three venture capital investments for $96.1 million:

A total of 51 worldwide equity financings of private and public companies occurred during this reporting period. Each of the 51 equity financings are profiled in a weekly report which include venture financings, private placements, secondary offerings, PIPE’s, and IPO’s.

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