Week 03/28/2005 through 04/03/2005

Prepared by: Dante Fichera, CPA

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

CapitalHunter.com was able to verify that $324 million of venture capital was invested in 35 U.S.-based companies during this week’s reporting period. The average deal size was approximately $9.26 million. The amount of venture capital invested this period increased by 32% compared to last periods $245 million.

Geographically,11 California companies raised $103.72 million in venture financings which represents 32% of the total venture capital invested this reporting period. The largest private venture financing in California this period was into NewScale. NewScale raised $15 million and is a Foster City based provider of Service Delivery Management software that enables Global 2000 companies to run IT organizations like a business -- by defining the catalog of services they deliver to the enterprise, automating self-service ordering, managing service delivery, and tracking cost and performance across internal and external service providers.
The software sector raised 35% of the venture capital this period. Seventeen software companies raised $111.25 million in venture financing. The largest private venture financing in the software sector this period was into INVIDI Technologies. INVIDI Technologies raised $16 million and is a Princeton, NJ based company that develops a software system, ADVATA. Its software-based tools and systems have harnessed the power of cable's digital infrastructure and the "DSTB network" to enable advertisers and media buyers to selectively target cable viewers with the same pinpoint accuracy as direct mail and database marketing — without compromising viewer privacy.
Companies raising their Later round of financing led this week’s venture capital activity. Later financings represented 42% of the total venture capital deployed this period. The largest private venture financing in Later stage financing this period was into TolerRx. TolerRx raised $31 million and is Cambridge, MA based that is a biopharmaceutical company specializing in the discovery and development of therapies that induce and maintain immunological tolerance.
The three largest venture deals this period are as follows:
  Company Industry Investment
1 TolerRx Biotechnology $31 million
2 Whittmanhart Business Services $25 million
3 Confluent Surgical Medical Devices $23 million


The following twenty five and other unnamed investors funded the above mentioned top three venture capital investments for $79 Million:
1Aozora Investment
2Artal Services
3Ascension Health Ventures
4Bear Stearns Health Innoventures
5Cross Atlantic Partners
6Duke University
7Essex Woodlands Health Ventures
8Genentech
9HealthCare Ventures
10HLM Venture Partners
11Key Venture Partners
12Lehman Brothers Venture Partners
13Mizuho Capital
14NIF Ventures
15Rho Ventures
16Skyline Ventures
17SV Life Sciences
18Technology Investment Capital
19The Sprout Group
20Three Arch Partners
21Ticonderoga Capital
22Topspin Partners
23Vertex Management Group
24Wheatley Partners
25Yasuda Enterprise Development

A total of 100 equity financings of private and public companies occurred during this reporting period. Each of the 100 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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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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