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Aug 13
2010
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VC firms on summer shopping spreePosted by dbedell in venture capital, VC, startup, Deals, Cash |
Venture capital companies have doled out cash to a plethora of start-ups in the past couple of weeks, even as they raised much less in new funding this quarter. Unless investors start opening their wallets and adding to VC coffers, this bounty cannot continue for long.
Companies in the technology and pharmaceuticals industries were the recipients of big investments from the VC community over the last two weeks, with numerous start-ups receiving funding.
Although a number of tech firms were targeted for funding, it was the medical and pharmaceuticals firms that received the big bucks. Antidepressant developer Euthymics, for example, garnered $24 million from a group of VCs, including Novartis’s VC group and the State of Wisconsin Investment Board.
Integrated Diagnostics, which makes personalized diagnostics technology, also received a hefty chunk of cash: garnering a further $10 million—after getting $30 million in first-round financing—from investors including The Wellcome Trust and BioTechCube.
On the tech side, Workstreamer—which provides content aggregation technology for news and social networking sites—received $3.5 million in Series A financing; SeatGeek—which is a search engine for low-priced sports and concert tickets—gleaned $1 million from VC funds; and social dating application developer Triangulate received $750,000.
Software companies also made out well, with BuzzLogic—which develops software to help marketers monitor blogosphere conversation—receiving $8.8 million in Series B financing; and software firm CloudMade—which provides location-based mapping data—getting $12.3 million in VC funds.
A number of other start-ups also garnered financing, and according to the Fenwick & West Venture Capital Barometer, $6.5 billion was invested by VC firms in start-ups in the second quarter.
VC investors were clearly spreading the wealth, but how long this will last remains to be seen.
Given that venture capital fundraising dropped dramatically in the second quarter—down to just $1.9 billion from $3.7 billion in the first quarter, according to research from Thomson Reuters and the National Venture Capital Association—the largesse may not last for long.




