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Biotechnology industries

Venture Capitalists Kick Off 2004 with Strong Fund-Raising Efforts

Strategic Insights

— 1 min read

As the year begins, 34 startups announced fund raising worth $445.3 million, marking a continuation of the surge in funding that began late last year. Venture capitalists are optimistic about deploying the capital they held aside for the last few years, with January already showing a strong start, with $510 million invested in 44 startups in the first two weeks of the year. The biotech sector leads the fund-raising efforts, accounting for 36% of the total deal flow.

Key Takeaways:

  • The biotech sector received 36% of the week's total deal flow, with seven startups reporting new deals, raising a total of $159.7 million in fresh funds.
  • The average deal size in the biotech sector was $22.8 million, propped up by two $35 million fundings for Novacea, Inc. and PTC Therapeutics Inc.
  • Novacea raised a total of $83 million since its inception in July 2001, while PTC Therapeutics has raised approximately $91 million in outside capital.
  • The networking sector made a strong showing, accounting for 21% of all capital raised, with startups reaping $96.1 million in new capital.
  • Redback Networks Inc. and Sandburst Corp. pulled in over 50% of the total funding in the networking sector, with Redback receiving a $30 million investment from Technology Crossover Ventures.

Statistics:

  • $445.3 million in fund raising announced by 34 startups in the first week of 2004.
  • $510 million invested in 44 startups in the first two weeks of the year.
  • 36% of the week's total deal flow accounted for by the biotech sector.
  • Average deal size in the biotech sector was $22.8 million.
  • Two $35 million fundings for Novacea, Inc. and PTC Therapeutics Inc.
  • $159.7 million raised by seven biotech startups in fresh funds.
  • $96.1 million raised by startups in the networking hardware and software industry.
  • Average deal size in the networking sector was $13.73 per deal.
  • $30 million investment from Technology Crossover Ventures in Redback Networks Inc.

Sources:

  • TheVCdeal.com
  • www.TheDeal.com
  • The text of the article does not contain the names of the specific startups mentioned except the ones mentioned above.

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