Weekly Venture Capital Activity Week May 9, 2005 through May 15, 2005
This reporting period companies based in California operating in the Communications industry and that have raised their Series D, E & up round of financing led the pack in the amount of venture financing raised. Also, there was two IPOs this reporting period.
(PRWEB) May 18, 2005
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Over the past several months, entrepreneurs have been finding venture capitalists more accommodating to their elevator pitches. This can be seen in the larger sums of investment capital moving into companies raising their Series A and B rounds over the past five months. These earlier stage financings reflect a trend away from the later-stage deals commonly seen during the economic downswing of 2001 through 2003. This shift in investment strategy can mean several things such as increased confidence in future economic growth, more opportunities for mergers, acquisitions, and public offerings, or perhaps VCs have more money available for investment than they can place in the more mature companies in their portfolio and are looking for new blood. For startups looking for equity financing it may be a good time to refine their sales pitch and expedite their search for potential investors.
Www. capitalHunter. com was able to verify that $669 million of venture capital was invested in 38 U. S.-based companies during this weekÂ’s reporting period. The average deal size was approximately 17.61 million. The amount of venture capital invested this period increased by 14% compared to last periods $589 million.
Geographically,17 California companies raised $269.3 million in venture financings which represents 41% of the total venture capital invested this reporting period. The largest private venture financing in California this period was into Entrisphere. Entrisphere raised $75 million and is a Santa Clara based manufacturer of network equipment and provider of voice, video, and data services to leading communication carriers worldwide.
The communications sector raised 38% of the venture capital this period. Four communications companies raised $248 million in venture financing. The largest private venture financing in the communications sector this period was into TerreStar Networks. TerreStar Networks raised $200 million and is a McLean, VA based provider of advanced mobile satellite systems in North America.
Companies raising their Series D, E & up round of financing led this weekÂ’s venture capital activity. Series D, E, & up financings represented 38.7% of the total venture capital deployed this period. The largest private venture financing in Series D, E & up stage financing this period was into TerreStar Networks. Five companies raised $256.50 million in their Series D, E & up round.
The three largest venture deals this period are as follows:
1,TerreStar Networks, Communications,$200 million
2,Entrisphere, Networks & Equipment,$75 million
3,Spherics, Biotechnology,$26.4 million
The following twenty-five and other unnamed investors funded the above mentioned top three venture capital investments for $301.4 Million:Accel Partners, Advent International Corp, AM Pappas, Benchmark Capital, CB Health Ventures, CDP Capital Technology Ventures, Columbia Capital Partners, Crosspoint Venture Partners, Duff Ackerman & Goodrich, Eastman Ventures, El Dorado Ventures, Mitsubishi Corp, Mobile Satellite Ventures, Motient Corporation, MVM Life Science Partners, Oakwood Medical Investors, Ontario Teachers Pension Plan, POD Holding, SkyTerra Communications, Spectrum Equity Investors, Star Ventures, TMI Communications, VantagePoint Venture Partners, Vectis Group, Zero Stage Capital.
A total of 83 equity financings of private and public companies occurred during this reporting period. Each of the 83 equity financings are profiled in a weekly report which include venture financings, private placements, secondary offerings, PIPEÂ’s, and IPOÂ’s.
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