Week 10/10/2005 through 10/16/2005

Prepared by Capital Hunter analysts:

Biotechnology has always been a popular destination for venture capital, but this week the sector received an uncharacteristic windfall, receiving over $232 million, largely due to six financings of over $20 million dollars. Even more notable is that four of these fundings were Series A investments, which should ease any doubts people may have about VC interest in the sector. Raven Biotechnologies was the largest recipient of the funding largesse this week, raising $48.3 million in late stage funding from an assortment of investors, including Biogen Idec, Bear Stearns, Mitsubishi UFJ Capital, U.S. Venture Partners, and many more. Other biotech fundings include Light Sciences Oncology, which received a $35 million Series A investment to further their clinical trials on hepatocellular carcinoma treatments and Alinea Pharmaceuticals, a Cambridge, Massachusetts based startup focusing on novel therapeutics for diabetic and metabolic disorders.

There were once again only four companies that sold new equity to the public last week, and the industries represented are from the same usual suspects: banking, energy, and shipping. The companies that listed on American stock exchanges last week are as follows:

TAL International Group, New York Stock Exchange, $207 million

Investors Bancorp, NASDAQ Stock Exchange, $448.9 million

Double Hull Tankers, New York Stock Exchange, $192 million

PokerTek, NASDAQ Stock Exchange, $22 million

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CapitalHunter.com was able to verify that $442.8 million of venture capital was invested in 30 U.S.-based companies during this week’s reporting period. The average deal size was approximately 14.77 million. The amount of venture capital invested this period increased by 14% compared to last periods $389 million.

Once again, California was the most popular destination for venture capital. Fourteen California companies raised $223.91 million in new equity financing which was 50% of the total venture capital invested this reporting period. The largest private venture financing in California this period was invested into Raven Biotechnologies. Raven Biotechnologies raised $48.3 million and is a South San Francisco based developer of next-generation monoclonal antibody therapeutics for the treatment of cancer.

The earlier mentioned biotechnology sector raised 53% of the venture capital this period. Nine biotechnology companies raised $232 million in venture financing. The largest private venture financing in the biotechnology sector this period went into the aforementioned Raven Biotechnologies.

Companies raising their Series A financing round led this week’s venture capital activity. These financings represented 41% of the total venture capital deployed this period. The largest private venture financing was placed into Alinea Pharmaceuticals. Alinea Pharmaceuticals raised $45 million and is a Cambridge, Massachusetts based developer of next-generation therapeutics for diabetic and metabolic disorders.

The three largest venture deals this period are as follows:

The following twenty-five companies and other unnamed investors funded the above mentioned top three venture capital investments for $129.3 million:

A total of 60 equity financings of private and public companies occurred during this reporting period. Each of the 60 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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