Q1 2004 Silicon Valley Venture Capital Activity

Overview Q1 2004

(PRWEB) May 1, 2004 --$1.518 billion of venture capital was invested in 108 Silicon Valley based companies during Q1 2004. The average deal size in Q1 2004 was $14.05 million.

The amount of venture capital raised by Silicon Valley companies in Q1 2004 is slightly down from Q4 2003 by 6.57%. The total venture capital raised by Silicon Valley companies in Q4 2003 was $1.619 billion in 183 companies. Per company sources, Jazz Pharmaceuticals, Inc. received $250 million in committed capital and the entire amount was not drawn down. If Jazz Pharmaceuticals, Inc. was treated as an outlier then total venture financings would be down by more than 20%.

The amount of venture capital raised by Silicon Valley companies in Q1 2004 is up from Q1 2003 by 23.65%. The total venture capital invested in Silicon Valley companies in Q1 2003 is $1.223 billion in 160 companies. Again, if Jazz Pharmaceuticals, Inc. is treated as an outlier then total venture capital would be up slightly over 3%.

Q1 2004 Hot Sectors
Consistent with prior quarters and what you would expect for Silicon Valley, more than 41% of the venture capital invested during Q1 2004 went to 53 software companies. The largest financing in the software sector was by Fortinet, Inc. for a total of $50 million in mezzanine financing. Fortinet, Inc. provides network protection systems designed to break the Content Processing Barrier, and deliver application level services: virus protection and content filtering along with firewall, VPN, intrusion detection, and traffic shaping functions. Investors involved in the financing are Redpoint Ventures, Acorn Ventures, Meritech Capital Partners, and
DEFTA Partners.

Q1 2004 Funding Round
40% of the companies that raised venture capital during Q1 2004 in Silicon Valley raised their Series B round. This is consistent with national trends and what would be expected for this funding environment. During the late 90s most of the financings were Series A rounds. This trend change can be explained by overhang, the need for investors to deploy larger amounts of capital, and the lack of quality deals. The largest Series B financing was by Jazz Pharmaceuticals, Inc. for $250 million. Per company sources, the $250 million was committed by Adams Street Partners, Lehman Brothers Venture Capital Group, Kohlberg Kravis Roberts & Company
EGS Healthcare Capital Partners, Beeken Petty O Keefe Co, Golden Gate Capital, and Thoma Cressey Equity Partners but the entire amount was not taken down. Jazz Pharmaceuticals, Inc. is a drug company concentrated on neurological and psychiatric disorders.
If Jazz Pharmaceuticals, Inc. was treated as an outlier then companies raising their Series C round would have represented the largest percentage of venture capital recipients. Therefore, the above mentioned trend would still hold true.

Top Three Q1 2004 Venture Capital Investments

The three largest venture deals this period are under scenario 1 $340 million and under scenario 2 $127 million and are as follows:

1. Jazz Pharmaceuticals

1. Fortinet
2. NeoPhotonics
3. Xenoport

Q1 2004 Silicon Valley Funded Companies

1.   3PAR
2.   Above All Software
3.   Actona
4.   Agitar
5.   Airgo Networks
6.   Alopa Networks
7.   Ample Communications
8.   Aperto
9.   Arcturus Bioscience
10.   Arcwave
11.   Array Networks
12.   Aspire Medical
13.   Astoria Software
14.   BlueRoads
15.   BlueSoft
16.   Candera
17.   Cast Iron Systems
18.   Catalytic
19.   Celequest
20.   Cellon International
21.   ChipX
22.   Companion Worlds
23.   Conformia Software
24.   DataNautics
25.   DBassociatesIT
26.   DigitalPersona
27.   Discera
28.   DrugAbuse Sciences
29.   Dust
30.   Enigma Semiconductor
31.   Euclid
32.   FaceTime
33.   Fiberxon
34.   Fortinet
35.   GraceNote
36.   Hammerhead Systems
37.   HyperRoll
38.   IC Media Corporation
39.   Infoblox
40.   Informative
41.   Inovys
42.   Instantis
43.   Integration Associates
44.   Intoto
45.   InTouch Health
46.   Intransa
47.   iPolicy Networks
48.   Jazz Pharmaceuticals
49.   Liquid Engines
50.   LogLogic
51.   Maranti Networks
52.   Metabolex
53.   Metrika
54.   MetroFi
55.   MicroFabrica
56.   Mirra, Inc.
57.   MobileWay
58.   NanoChip
59.   Nanomix
60.   NeoPath Networks
61.   NeoPhotonics
62.   NetScaler
63.   NeurogesX, Inc.
64.   NextHop Technologies
65.   nSite Software
66.   Oculus Innovative
67.   Olliance Group
68.   OmniTrust
69.   OnStation
70.   Open-Silicon
71.   OpSource
72.   Optillion
73.   Parama Networks
74.   PeakStone
75.   Pedestal Networks
76.   Pivia Software
77.   Precision I/O
78.   Pronto Networks
79.   Pulmonx
80.   Qlusters
81.   Reconnex
82.   Sana Security
83.   Securify
84.   ServGate Technologies
85.   SideStep
86.   SigmaQuest
87.   Solaicx
88.   Sonim Technologies
89.   SurgRx
90.   SurgRx
91.   Sygate Technologies
92.   Tablus
93.   TAK´ASIC
94.   Telcontar
95.   Tera Systems
96.   Truvideo
97.   UPEK
98.   Vendavo
99.   VirtuTech
100.   Vitex Systems
101.   Vivant Medical
102.   WaferGen
103.   Wheels of Zeus
104.   Xceive
105.   Xenoport
106.   Zantaz
107.   Zyomyx

Q1 2004 Active Venture Capitalists

1.   Sequoia Capital
2.   New Enterprise Associates
3.   Mayfield
4.   Menlo Ventures
5.   3i Group
6.   Advanced Technology Ventures
7.   Draper Fisher Jurvetson
8.   Foundation Capital
9.   Intel Capital
10.   Sevin Rosen Funds
11.   Apax Partners
12.   Bay Partners
13.   Benchmark Capital
14.   ComVentures
15.   Doll Capital Management
16.   Goldman Sachs Group Inc.
17.   Institutional Venture Partners
18.   InterWest Partners
19.   Norwest Venture Partners
20.   Sofinnova Partners
21.   Walden Venture Capital
22.   Accel Partners
23.   Adams Street Partners
24.   Alliance Technology Ventures
25.   Alta Partners
26.   Apex Venture Partners
27.   ARCH Venture Partners
28.   AsiaTech Ventures
29.   August Ventures
30.   BA Venture Partners
31.   Bessemer Venture Partners
32.   BV Group Ventures
33.   California Technology Venture Partners
34.   Charles River Ventures
35.   Chess Ventures
36.   CrossBridge Venture Partners
37.   Crystal Internet Ventures
38.   Dali-Hook Partners
39.   Diamond Technology Partners
40.   Duff Ackerman & Goodrich
41.   DynaFund Ventures
42.   El Dorado Ventures
43.   Global Catalyst Partners
44.   Granite Ventures
45.   Greylock Ventures
46.   H&Q Capital
47.   Hotung Group
48.   Innovation Capital
49.   Invesco Private Capital
50.   JK&B Capital
51.   JP Morgan Partners
52.   Lehman Brothers Venture Capital Group
53.   Lightspeed Venture Partners
54.   Lucent Ventures
55.   Montreux Equity Partners
56.   Nokia Venture Partners
57.   Oak Investment Partners
58.   Partech International
59.   Pequot Ventures
60.   Redpoint Ventures
61.   Sprout Group
62.   Storm Ventures
63.   Sutter Hill Ventures
64.   Three Arch Partners
65.   VantagePoint Venture Partners
66.   Venrock Associates
67.   Venture Strategy Partners
68.   WK Technology Fund
69.   WorldView Technology Partners
70.   ABS Capital Partners
71.   Acacia Venture Partners
72.   Acorn Ventures
73.   Adobe Ventures
74.   AKN Technology
75.   Alloy Ventures
76.   ALPS Information Technology Fund
77.   AmidZad
78.   Angel Investors
79.   Ardesta
80.   ArrowPath Venture Capital
81.   Artiman Ventures
82.   ATA Ventures
83.   Athena Technology Ventures
84.   Athenian Venture Partners
85.   Atherton Venture Partners
86.   Azure Capital Partners
87.   Battelle Memorial Institute
88.   Beeken Petty O Keefe Co
89.   Berger Funds
90.   Big Sky Partners
91.   Bio One Capital
92.   Birchmere Ventures
93.   Blueprint Ventures
94.   BlueStream Ventures
95.   Bridger Capital
96.   Brookstreet Securities
97.   Cardinal Partners
98.   Catamount Ventures
99.   CDC Innovation Partners
100.   CDP Capital
101.   CenterPoint Ventures
102.   Chevron Corp.
103.   ChinaVest Inc.
104.   CIBC Capital Partners
105.   Clearstone Venture Partners
106.   CMEA Ventures
107.   Comverse Technology Inc.
108.   Crescendo Ventures
109.   DEFTA Partners
110.   Diamondhead Ventures
111.   DotEdu Ventures
112.   Doughty Hanson Technology Ventures
113.   EarlyBird Ventures
114.   EDBV Management
115.   EGS Healthcare Capital Partners
116.   Elcoteq Network
117.   Entercom Communications
118.   Evergreen Partners
119.   Fantine Group
120.   Fast Angels Ventures
121.   Fininvest
122.   Focus Ventures
123.   Fort Washington Capital
124.   Frazier Healthcare Investments
125.   Gabriel Venture Partners
126.   General Atlantic Partners, LLC
127.   Geneva Venture Partners
128.   Global Asset Capital
129.   Global Life Science Ventures
130.   Glynn Ventures
131.   Golden Gate Capital
132.   Green Dot Capital
133.   H.I.G. Ventures
134.   Harris & Harris Group, Inc.
135.   HighBAR Ventures
136.   Horizon Ventures
137.   Huntington Ventures
138.   IDG Ventures
139.   Incubic
140.   Industrial Technology Investment
141.   Innovacom
142.   In-Q-Tel
143.   Insight Venture Partners
144.   InvestCare Partners
145.   Investcorp Technology Ventures Fund
146.   Investor Growth Capital
147.   Israel Seed Ventures
148.   ITACT
149.   ITU Ventures
150.   JAFCO America Ventures
151.   Johnson & Johnson Development
152.   JVP
153.   Key Venture Partners
154.   Kinetic Ventures
155.   Kobayashi
156.   Kohlberg Kravis Roberts & Company
157.   Labrador Ventures
158.   Leapfrog Ventures
159.   Lilly BioVentures
160.   Linkmore Capital
161.   MediPhase Venture Partners
162.   MedVenture Associates
163.   Meritech Capital Partners
164.   Merlin BioMed Group
165.   Microdent Ventures
166.   Mitsubishi Corp
167.   Mitsui Co Venture Partners
168.   Mobius Venture Capital
169.   NeoCarta Ventures
170.   Network Angel Capital
171.   Nexit Ventures
172.   Nomura International plc.
173.   Northzone Ventures
174.   Novus Ventures
175.   Oak Hill Venture Partners
176.   Outlook Ventures
177.   OVP Venture Partners
178.   Pacific Venture Group
179.   Palo Alto Investors
180.   Palomar Ventures
181.   Parker Price Venture Capital
182.   Prospect Venture Partners LP
183.   Putnam Internet Partners
184.   Raza Foundries Inc.
185.   Red Rock Ventures
186.   Redwood Venture Partners
187.   Revolution Ventures
188.   Rho Capital Partners
189.   Rockport Capital Partners
190.   SBV Venture Partners
191.   SDL Ventures
192.   Sigma Partners
193.   Silicon Valley Bank
194.   Sippl MacDonald Ventures
195.   Skyline Ventures
196.   SkyMoon Ventures
197.   Solstice Capital
198.   Spectrum Equity Investors
199.   SPEF Groupe Banques Populaires
200.   St. Paul Venture Capital
201.   Stanford University
202.   Star Ventures Management
203.   Startupfactory
204.   Sunrise Capital Fund
205.   Synopses
206.   Taiwan Mask Corporation
207.   TechFarm
208.   Techno Venture Management
209.   TeleSoft Ventures
210.   The Carlyle Group
211.   The Entrepreneurs' Fund
212.   The Ignite Group
213.   Thoma Cressey Equity Partners
214.   Thomas Weisel Partners
215.   TIAA CREF
216.   Ticonderoga Capital
217.   Tokki Corp
218.   Trident Capital
219.   Trinity Ventures
220.   Twenty One East Victoria Investments
221.   U S Venture Partners
222.   U.S.Thrust Private Equity
223.   UMC Capital Corporation
224.   University N.C. Endowment Fund
225.   VaekstFonden
226.   Ventana Global
227.   Ventech NATEXIS
228.   VERITAS Software
229.   Vertex Venture Capital
230.   Visa International
231.   Vision Capital
232.   Western Technology Investments
233.   WI Harper Group
234.   Wilson Sonsini Goodrich & Rosati
235.   Zone Ventures

Prepared by: Dante Fichera www.capitalhunter.com