Week 04/09/2007 through 04/15/2007

Prepared by Capital Hunter analysts:

Venture capital investment slipped this period to $471.8 million, down a little over $100 million from last period’s $573 million, but solid nevertheless. Software investment continued its comeback, with over $100 million invested in the sector, including $40 million placed into television authoring company Ensequence, the largest single software investment in many months. Medical device companies received the most capital, however, with over $110 million going to such concerns, including spinal product company SpineWave, which took in $45 million from a large group of investors not limited to Canaan Partners, Sprout Capital, New Enterprise Associates, CHL Medical Partners, California Technology Partners and others, and Applied Spine Technologies, which raised $28 million in Series C funding from Investor Growth Capital & MB Venture Partners and plants to use the money in order to expand their product line. Biotech companies continued to receive solid support, with over $76 million flowing to the sector this period, though the pot was only split between three companies. The largest biotech investment was placed into Sirion Therapeutics, which raised $45 million in second stage financing from a bevy of investors and plans to use the new capital to further develop its ophthalmologic product line. Other sectors, including digital media alternative energy and semiconductors, had off-weeks but should return to normal numbers soon. We expect venture capital investment to be about in-line with this period next week, with software and life sciences continuing to lead the charge. Stay tuned.

The IPO market lagged this period, with only a single company deciding to list. You can read the synopsis and link to the company through Yahoo! Finance below. Without further ado, here are the lone company that went public this period:

Comverge NASDAQ:COMV priced at $95.4 million and is a provider of clean energy solutions to utilities in order to mitigate energy usage during peak usage.

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CapitalHunter.com was able to verify that $472 million of venture capital was invested in 35 U.S.-based companies during the past week. The average deal size was approximately 13.49 million. The amount of venture capital invested this period decreased by 18% compared the last period’s $573 million.

California was the largest recipient of venture capital funding this week. Fourteen California companies raised $180.7 million in new equity financing, which accounted for 39% of the total venture capital invested this reporting period. The largest investment in California was placed into Telsima. Telsima raised $50 million in Series D funding and provides wireless equipment to communications service providers.

The medical device sector raised the most venture capital this reporting period, with only five companies raising $111.75 million in venture financing. Medical device companies accounted for approximately 24% of the venture capital this period. The largest investment in the sector was placed into the previously mentioned Spinewave.

Start-ups raising their third stages of funding represented the largest share of the funding pie, as 36% of all money invested this period went into such companies. The largest Series C funding was placed into the previously mentioned Ensequence.

The three largest venture deals this period are as follows:

The following eighteen companies and other unnamed investors funded the above mentioned top three venture capital investments for $140 million:

A total of 50 equity financings of private and public companies occurred during this reporting period. Each of the 50 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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