News and Analysis of Trends In Angel and VC Investing In Technology
Wednesday, July 16, 2008
Overall, venture capital funds are raising capital but bemoaning a lack of quality deals.
Seven "mega firms," defined as firms raising funds of $6 billion or larger, raised $36.6 billion, only a bit below the $37.4 billion raised by eight mega firms last year.
Despite a gloomy mood on Wall Street and no recent “exits” through stock offerings for venture-backed firms, venture capital funds raised $9.1 billion in the second quarter.
In the second quarter, 71 VC firms closed on financing, compared with 70 in the first quarter. A year ago, 83 funds were able to raise money.
Of those 71, 22 were new funds, up from nine in the first quarter and from 16 in 2007.
What this means for you: The exits are in merger and acquisitions by much bigger players. For ordinary investors, this makes getting in on deals very difficult. Still, watching what the VCs are doing today, and watching what the bigger players are buying will eventually lead you to investments in the bigger players.
Investment Targets In High Tech
IT and Computer Services Still Going Strong
Georgia-based Brightree plugs in Battery Ventures investment
July 15, 2008 By Allan Maurer
DULUTH, GA—Brightreee, a company selling business management software for the home medical equipment and sleep therapy markets, has received a “significant investment” from Battery Ventures.
OpenSpan closes $13M C round for productivity boosting software
July 14, 2008
ALPHARETTA, GA – OpenSpan Inc., a company selling desktop productivity and service oriented architecture acceleration software, has closed a $13 million C round co-led by FTVentures and Globespan Capital Partenrs.
TrackVia, the maker of an online database with a point-and-click interface, has raised an undisclosed first round of venture funding, according to TechCrunch. Backers include Flywheel Ventures and Access Venture Partners, with participation from several angel investors, including Tim Draper.
The company, founded in 2005 and based in Denver, describes it product as “easy as a
Exton, Pennsylvania -- Software company iPipeline said that it has secured a series A funding amount of $18 million.The company has developed a suite of sales distribution software that it markets to the insurance and financial services industries as a software-as-a-service model.
Biotech and Medical Still Strong
CoLucid tries to prove that a virtual biotech can produce real returns. The company, CoLucid, is developing a migraine treatment that's reached mid-stage human trials. Last week, the firm announced that it's raised $25 million in a series B round from financiers including Durham's Pappas Ventures.
Yet CoLucid has no headquarters and only four full-time workers.
Houston -
Houston --- Tyrell, Inc, the creators of Zeno, an innovative hand-held medical device used in the treatment of acne, today announced that the company has closed a $28 million round of equity financing. The investment was led by Santé Ventures and Catterton Partners, and joined by existing investor Austin Ventures. Tyrell will use the funds to support expanded distribution of the Zeno line as well as to support new product introductions.
CardioKinetix, a Redwood City, Calif. life sciences startup working on a heart-failure treatment that could potentially help over a million patients, has raised a third round of funding, according to VentureWire. The company’s procedure uses a catheter to strengthen parts of the heart, and protect areas damaged following heart attacks.
Cumberland, Rhode Island -- Collegium Pharmaceutical announced that it has received $20 million in its fourth round of venture capital funding. The company is developing late stage pharmaceuticals that add clinical benefit to existing drugs that have already been proven safe and effective. Frazier Healthcare Ventures led the round, which included Boston Millennia Partners and Westfield Capital Management
Anything to Do with CLEAN TECH is Golden
Austin, Texas-based Nuventix, which makes low cost, energy-efficient cooling technology for LEDs and consumer electronics, has received $14 million in third round funding led by Advanced Technology Ventures. Braemar Energy Ventures also joined the round. The firm will use the proceeds to expand its range of LED cooling devices and to move into new markets. Its [...]
