Week 03/14/2005 through 03/20/2005

Prepared by: Dante Fichera, CPA

This reporting period companies based in California operating in the Software industry and that have raised their Series C round of financing led the pack in the amount of venture financing raised. Also, there was three IPO this reporting period.

CapitalHunter.com was able to verify that $315 million of venture capital was invested in 29 U.S.-based companies during this week’s reporting period. The average deal size was approximately $10.86 million. The amount of venture capital invested this period decreased by 14% compared to last periods $367 million.

Geographically,15 California companies raised $189.34 million in venture financings which represents 61% of the total venture capital invested this reporting period. The largest private venture financing in California this period was into TorreyPines Therapeutics. TorreyPines Therapeutics raised $34.8 million and is La Jolla based and is a clinical-stage biopharmaceutical company focused on discovering and developing breakthrough small molecule drugs to treat diseases and disorders of the central nervous system.

The software sector raised 37% of the venture capital this period. Fourteen software companies raised $115.78 million in venture financing. The largest private venture financing in the software sector this period was into Kazeon. Kazeon raised $17 million and is a Mountain View, CA based company that develops application-independent unstructured information management services that provide consistent information visibility and control across diverse unstructured data sets, such as user files and email.

Companies raising their Series C round of financing led this week’s venture capital activity. Series C financings represented 49% of the total venture capital deployed this period. The largest private venture financing in Series C stage financing this period was into Masergy Communications. Masergy Communications raised $45 million and is a Plano, TX based company that is a provider specializing in real-time application performance across converged enterprise networks. The company provides customer-controlled infrastructure management network services for enhanced business application performance running across their wide-area networks.

The three largest venture deals this period are as follows:

The following twenty and other unnamed investors funded the above mentioned top three venture capital investments for $99.8 Million:

A total of 83 equity financings of private and public companies occurred during this reporting period. Each of the 83 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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