Week 02/06/2006 through 02/12/2006

Prepared by Capital Hunter analysts

Venture capital remained strong this reporting period, although not as strong as last week, when $486 million was invested. This reporting period had $433 million invested in 43 companies (one more than last week), with much of the funding going into the two most popular sectors for venture capital, software and biotechnology. These two sectors accounted for almost 50% of the total funding, with software garnering 27% and biotechnology taking 20%. Medical device companies were nearly shut out again this week, with only a single company, San Diego-based Accumetrics, receiving any funding. Telecommunications also performed well, securing 16% of this week’s funding while computers & peripherals, which secured less venture funding than any other sector in Q4 ’05, even below unfavored venture sectors such as consumer products and retail, came back strong, securing nearly $25 million in new equity investment.

Following on the heels of the seventeen companies that listed on American stock exchanges two weeks ago, twelve decided to list last week. Six of these IPOs priced for over $200 million, whereas only four (out of seventeen) companies qualified for such a feat last reporting period. The twelve companies are as follows:

Resource Capital, which priced at $60 million on the NYSE, is a specialty finance companies that invests in real estate and high yielding commercial finance assets.

Crocs, which priced at $207.9 million on the NASDAQ, is a designer, manufacturer and marketer of footwear for people of all ages.

Ntelos Holdings, which priced at $172.5 million on the NASDAQ, is a provider of wireless and wireline communications services to businesses and consumers in Virginia and West Virginia.

Nighthawk Radiology Services, which priced at $100.8 million on the NASDAQ, is a provider of off-hours emergency radiology services to hospitals throughout the United States.

Morton’s Restaurant Group, which priced at $160.9 million on the NYSE, is a worldwide steak house restaurant chain.

Exco Resources, which priced at $650 million on the NYSE, is an independent oil & gas acquirer and explorer of North American oil & natural gas properties.

Magellan Midstream Holdings LP, which priced at $539 million on the NYSE, is the owner and operator of Magellan Midstream Partners LP, an oil & gas pipeline company engaged in the transportation, storage and distribution of refined petroleum products.

Amcomp, which priced at $94.5 million on the NASDAQ, is a provider of worker’s compensation property and casualty insurance.

Acorda Therapeutics, which priced at $33 million on the NASDAQ, is a commercial-stage biopharmaceutical company that provides therapeutics for various central nervous system disorders.

Rosetta Resources, which priced at $950 million on the NASDAQ, is an independent oil & gas explorer with properties in the Sacramento Basin, South Texas, the Gulf of Mexico and the Rocky Mountains.

Spark Networks, which priced at $236 million on the AMEX, is a provider of online personals services internationally.

Morgans Hotel Group, which priced at $360 million on the NASDAQ, is an integrated hospitality company that operates, owns, acquires and redevelops boutique hotels throughout the United States and Europe.

CapitalHunter.com was able to verify that $433 million of venture capital was invested in 43 U.S.-based companies during the past two weeks. The average deal size was approximately 10.07 million. The amount of venture capital invested this period decreased by 11% compared to last periods $486 million.

California was once again the largest recipient of venture capital funding this week. Twenty California companies raised $176.8 million in new equity financing, which accounted for 41% of the total venture capital invested this reporting period. The largest private venture financing in California was placed into ARYx Therapeutics . ARYx Therapeutics raised $30.4 million in Series E financing and is a provider of next-generation pharmaceuticals and therapeutics using its retrometabolic design platform to treat gastrointestinal motility problems, atrial fibrillation and coagulation problems.

The software sector raised the most venture capital this reporting period, with eighteen companies raising $117.3 million in venture financing, which accounted for 27% of the venture capital this period. The largest private venture financing in the software sector this period was invested into GameLogic. GameLogic raised $18.6 million from Bain Capital Ventures, General Catalyst Partners and Maveron and is a provider of online solutions for gaming operators.

Start-ups raising their Series B round of financing represented the largest share of the funding pie, although the funding was evenly spread through the various stages of funding, as you can see below. Approximately 28% of all money invested this period went into such companies. The largest Series B financing was placed into Catalyst BioSciences . Catalyst Biosciences raised $30 million and is a provider of therapeutic proteases used in inflammation, cardiovascular and angiogenic disorders.

The three largest venture deals this period are as follows:

The following seventeen companies and other unnamed investors funded the above mentioned top three venture capital investments for $96.4 million:

A total of 105 equity financings of private and public companies occurred during this reporting period. Each of the 105 equity financings are profiled in a weekly (in this case biweekly) report which include venture financings, private placements, secondary offerings, PIPE’s, and IPO’s.

About CapitalHunter.com

CapitalHunter.com is a web-based financial information company that identifies, preserves and electronically disseminates worldwide data on venture capital and other equity financings. Customers utilize the CapitalHunter.com searchable database to research newly and historic financings and to identify active investors.

Please visit www.capitalhunter.com and get immediate access. New subscribers can request a free investor analysis.

To be REMOVED from this free service, CLICK HERE