Week 05/14/2007 through 05/20/2007

Prepared by Capital Hunter analysts:

Venture capital investment fell this period to $293 million, as venture capitalists pulled in the reins after a $695 million binge the week before. Software was the top destination, with over $100 million pouring into software deals, which constituted over a third of this period’s total capital. It would seem that software investment is out of its funk after its pitiful April, when life science companies were the preferred destination for venture capital. IT service companies also had a good week, as over $40 million poured into such concerns, further continuing the theme of IT investment this period. Fabrik, which provides online storage services, raised $24.9 million in late stage funding from 3i, Fox Interactive, Intel Capital and ComVentures, the largest IT service company financing since Cybernet-SlashSupport received $25 million from Goldman Sachs back in early April. Life science investment, after a very strong March and April, has waned the past few weeks, as mega biotech and medical device deals have went into a temporary lull, notwithstanding last period. The biggest investment of the period, however, was placed into a biotech company, Intrexon, which raised $25 million in Series C funding in order to expand their pre-clinical studies as well as expand their technology platform for early stage drugs. The largest medical device funding of the period was Apnex Medical, which is developing technology to alleviate obstructive sleep apnea, and raised $16.1 million from blue chip venture firms Domain Associates, New Enterprise Associates and Polaris Venture Partners in order to continue development of their product. Other sectors, including digital media, semiconductors, business services and telecommunications all raised negligible sums of capital, and are included in the other section of the sector funding numbers below. We do not know how much venture capital investment we will see for next newsletter, but hopefully we will continue to see strong investment continue in life sciences and information technology. Stay tuned.

Here is a list of all of the initial public offerings that occurred during the past period. For more detailed information of each company just click on the link below, which will take you to the company’s Yahoo! Finance page. Keep in mind, however, that Yahoo! can be notoriously slow in updating information on new public companies, but is nevertheless a good place to start if you want to find financial information about the company in question. Also, if you do a finance search for the company in question, you can usually find a private profile, which includes a business summary and other basic information, such as trailing twelve month revenues, top executive management, address and contact information. Without further delay, here are some of the companies that went public this period:

Insulet NASDAQ:PODD priced at $115.5 million and is a developer of insulin infusion systems.

Skilled Healthcare Group NYSE:SKH priced at $258.3 million and is a provider of integrated long-term healthcare and nursing services.

Continental Resources NYSE:CLR priced at $309.75 million and is an independent oil & natural gas exploration company focused on properties in the central United States.

TechTarget NASDAQ:TTGT priced at $100.1 million and is a provider of online IT content and services for IT professionals.

Eurand N.V. NASDAQ:EURX priced at $112 million and is a developer of exocrine pancreatic drugs.

China Sunergy NASDAQ:CSUN priced at $93.5 million and is a provider of solar photovoltaic cells.

Trimas NYSE:TRS priced at $121 million and is a provider of high-tech manufacturing services.

EnerNOC NASDAQ:ENOC priced at $97.5 million and is a provider of clean power solutions.

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CapitalHunter.com was able to verify that $293 million of venture capital was invested in 29 U.S.-based companies during the past week. The average deal size was approximately 10.10 million. The amount of venture capital invested this period decreased by 58% compared the last period’s $695 million.

California was the largest recipient of venture capital funding this week. Ten California companies raised $101.9 million in new equity financing, which accounted for 35% of the total venture capital invested this reporting period. The largest investment in California was placed into Fabrik.

The software sector raised the most venture capital this reporting period, with twelve companies raising $100.2 million in venture financing. Software companies accounted for approximately 34% of the venture capital this period. The largest investment in the sector was placed into ID Analytics. ID Analytics raised $20 million in Series C funding and is a provider of on-demand software services used to prevent fraud and identity theft.

Start-ups raising their second stages of funding represented the largest share of the funding pie, as 29% of all money invested this period went into such companies. The largest Series B funding was placed into Avail Media. Avail Media raised $17 million and is a provider of IPTV and other media services to broadband operators.

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 $74.9 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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