Prepared by Capital Hunter analysts
After the monster amount of capital companies raised last period, it was expected that this period’s funding would come down a bit. However, we were surprised by just how large the drop-off in funding happened to be. Companies this period raised only $380 million, a nearly half-billion drop from the $870 million in capital companies received last period. With the exception of software companies, which actually received more financing this period than last, every industry saw a precipitous drop in the amount of capital they raised. Biotechnology investment went from $182.1 million to $32.6 million. Semiconductor investment went from $157 million to $24.5 million. Industrial investment went from a whopping $210 million last period to a $22 million pittance this period. Other industries had similar, if not as eye-popping, declines as well. The only real positive this period is that venture capital was uncharacteristically distributed over a very wide range on industries, with ten different industries receiving between $20 and $30 million dollars, as you can see on the chart below. As the $870 million two weeks (last period) ago was an anomalous high, this period is almost assuredly an anomalous low. Expect venture capital investment next newsletter to climb to approximately $500 million next week, with a few mega ($50 million plus) investments leading the way.
After four weeks of futility, we finally have some initial public offerings to report to you. We mentioned last week that you should expect to see a bevy of companies go public, and seven actually did, raising over $1.5 billion in capital from the public markets. The largest of these by far was Warner Chilcott, a pharmaceutical company that specializes in dermatological and woman’s health products and raised close to $1 billion (net of fees) in its Thursday debut. The stock has slipped from its debut of $15 a share due to its waiver of the exclusivity provision on its OVCON oral contraceptive. Barr Pharmaceuticals plans to make a generic version of OVCOM 35 called Balziva to directly compete with OVCOM, ending a great deal of legal troubles and speculation. Without further ado, here are the seven companies that listed last week:
Hiland Holdings
NASDAQ:HPGP priced at $129.5 million and owns interests in Hiland Partners, which gathers, compresses, dehydrates, processes and markets natural gas.
Warner Chilcott
NASDAQ:WRCX priced at $1.059 billion and is a provider of dermatological and woman’s health products throughout the United States.
Riverbed Technology
NASDAQ:RVBD priced at $85.8 million and is a provider of network appliances that greatly improve transmission speed across wide area networks.
Home Diagnostics
NASDAQ:HDIX priced at $79.2 million and is a provider of blood glucose monitoring systems and disposable supplies for diabetics.
Porter Bancorp
NASDAQ:PBIB priced at $37.2 million and is the holding company for PBI Bank, a regional bank domiciled in Kentucky with offices throughout the eastern central part of the United States.
DivX
NASDAQ:DIVX priced at $145.6 million and is a provider of digital video compression solutions.
Commvault Systems
NASDAQ:CVLT priced at $161.1 million and is a provider of data management software applications.
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