Week 09/26/2005 through 10/02/2005

Prepared by Capital Hunter analysts

Early stage funding continued to account for a large portion of the total dollars invested into private companies this week, as nearly half of all venture money this reporting period went into seed and Series A financings. In fact, the two largest financings this week, MagnetBank and Shop.com, were both early stage investments.

Initials public offerings were back in vogue this reporting week, as twelve companies priced on American stock exchanges this week. The twelve companies that went public are as follows:

TRX Inc.

Sunesis Pharmaceuticals

Horizon Lines

Ituran Location & Control

WebMD Health

Taleo

Global Partners LP

Genomic Health

Caribou Coffee

Avalon Pharmaceuticals

VistaPrint

State National Bancshares

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CapitalHunter.com was able to verify that $402 million of venture capital was invested in 45 U.S.-based companies during this week’s reporting period. The average deal size was approximately 8.93 million. The amount of venture capital invested this period increased by 38% compared to last periods $292 million.

Once again, California was the most popular destination for venture capital. Twenty-two California companies raised $210.84 million in new equity financing which was 53% of the total venture capital invested this reporting period. The largest private venture financing in California this period was invested into Shop.com. Shop.com raised $25 million and is a Monterrey, California based aggregator of online retailing services.

The software sector raised 20% of the venture capital this period. Fourteen software companies raised $77.9 million in venture financing. The largest private venture financing in the software sector this period went into Roamware. Roamware raised $14 million and is a San Jose based provider of software solutions for mobile communications.

Companies raising their initial financing round led this week’s venture capital activity. These financings represented 43% of the total venture capital deployed this period. The largest private venture financing was placed into MagnetBank. MagnetBank raised $44.7 million is an Atlanta based financial company focused exclusively on commercial loans.

The three largest venture deals this period are as follows:

The following ten companies and other unnamed investors funded the above mentioned top three venture capital investments for $69.7 million:

A total of 86 equity financings of private and public companies occurred during this reporting period. Each of the 86 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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