Week 09/19/2005 through 09/25/2005

Prepared by Capital Hunter analysts

Early stage funding accounted for almost half of this week’s new venture financings, as early stage venture capital continues to flow into younger ventures. So far through the third quarter of 2005, seed and Series A round financings have accounted for slightly more than a quarter of all venture funding. If you add Series B financings to the mix the total venture funding for the third quarter is over 50% and the total financings were well over half, so earlier stage venture deals are still being done despite statements to the contrary. Our preliminary venture capital reports for the third quarter of 2005 will be out within the next three weeks.

For the first time this month, some new companies made their stock available to the public. Even though there have some secondary and follow-on offerings, most notably Google’s $4.18 billion follow-on offering to its much anticipated August 2004 initial public offering, this week marked to first time in nearly a month a company has gone public. In fact five companies went public last week, the first ones since Enterprise Holdings and Ready Mix went public in August. Here are the companies that went public this week:

Williams Scotsman International

Nexity Financial

Ikanos Communications

North Pointe Holdings

Global Cash Access Holdings

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CapitalHunter.com was able to verify that $292 million of venture capital was invested in 32 U.S.-based companies during this week’s reporting period. The average deal size was approximately 9.13 million. The amount of venture capital invested this period decreased by 15% compared to last periods $342 million.

California was once again the most popular region for venture capitalists. Fourteen California companies raised $129.8 million in new equity financing which was 43% of the total venture capital invested this reporting period. The largest private venture financing in California this period was invested into Rearden Commerce. Rearden Commerce raised $25 million and is a San Mateo, California based provider of online business software and services for travel, entertainment, shipping and conferencing.

While the software sector raised the most money with $58.59 million and 20% of the total capital this period, funding was evenly spread out through many different industries. The IT services sector raised 19% of the total funding this period, including the aforementioned Rearden Commerce and Everdream Corporation, while biotechnology, telecommunications, networks & equipment and business services all raised over ten percent of this period’s funding. The largest private venture financing in the software sector this period went into United Devices. United Devices raised $15 million and is a Austin based provider of secure grid software solutions for business IT departments.

Companies raising their Series A financing round led this week’s venture capital activity. These financings represented 36% of the total venture capital deployed this period. The largest Series A private venture financing was placed into Oanda. Oanda is an New York based provider of online foreign exchange, currency trading, and information services to businesses and investors worldwide.

The three largest venture deals this period are as follows:

The following eleven and other unnamed investors funded the above mentioned top three venture capital investments for $70 million:

A total of 69 equity financings of private and public companies occurred during this reporting period. Each of the 69 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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