Venture investing falls further as firms focus on portfolios. (Media & Technology).Local venture capital investing fell more than 30 percent in the third quarter as the jittery stock market continued to wreak wreak tr.v. wreaked, wreak·ing, wreaks 1. To inflict (vengeance or punishment) upon a person. 2. To express or gratify (anger, malevolence, or resentment); vent. 3. havoc on technology firms, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Growthink, a market research firm. Fifteen L.A. County companies received $121.5 million in the July-September period, down from 21 companies and $180.8 million in the second quarter. In the third quarter of 2001, $187.8 million was doled out Adj. 1. doled out - given out in portions apportioned, dealt out, meted out, parceled out distributed - spread out or scattered about or divided up to 21 L.A. companies. The average deal size was $8.1 million, down from $8.6 million last quarter and $8.9 million a year ago. Most of the companies that received money were financed as part of a follow-on round and usually for a specific purpose, such as to service a new contract or to beef up sales and marketing operations. "It's better to invest in the company you know than the company you don't know Don't know (DK, DKed) "Don't know the trade." A Street expression used whenever one party lacks knowledge of a trade or receives conflicting instructions from the other party. ," said Greg Martin, an associate at Redpoint Ventures in Santa Monica Santa Monica (săn`tə mŏn`ĭkə), city (1990 pop. 86,905), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1886. Tourism and retailing are important, and the city has motion-picture, biotechnology, and software industries. . Martin said investments continue to be company specific, meaning there is no hot sector receiving the bulk of the money. As technology stocks have been battered bat·ter 1 v. bat·tered, bat·ter·ing, bat·ters v.tr. 1. To hit heavily and repeatedly with violent blows. 2. To subject to repeated beatings or physical abuse. 3. , many venture capitalists Venture Capitalist An investor who provides capital to either start-up ventures or support small companies who wish to expand but do not have access to public funding. Notes: Venture capitalists usually expect higher returns for the additional risks taken. have tried to cut down on risk by taking a greater role in the day-to-day activities of their portfolio companies. Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. software company Blue Falcon Networks, for instance, received an $8.5 million round led by the Sprout Group in Menlo Park Menlo Park. 1 Residential city (1990 pop. 28,040), San Mateo co., W Calif.; inc. 1874. Electronic equipment and aerospace products are manufactured in the city. Menlo College and a Stanford Univ. research institute are there. 2 Uninc. , which installed one of its entrepreneurs in residence, Joshua Goldman, as chief executive. "In this environment, anything they can do to reduce risk is preferred," said Goldman, who had been chief executive of MySimon Inc. before joining Sprout Group. "The only thing getting funded right now are technologies that are already developed and proven to save money or increase efficiencies in the few industries still spending money on technology. Blue Falcon, which counts Virgin Entertainment Group's Radio Free Virgin among its customers, sells software that promises to make it faster and cheaper to distribute content over the Internet. At least two companies providing "supply-chain solutions" (Internet-based software linking manufacturers with suppliers and retailers) received money in the third quarter: Adexa Inc. ($15 million) and Agribuys ($5 million). Laurence Sotsky, Agribuys' vice president of sales and marketing, said the company received money to service a new contract it signed with Ahold a·hold n. Hold; grip: "I knew I could make it all right if I got . . . back to the hotel and got ahold of that bottle of brandy" Jimmy Breslin. , the Dutch food conglomerate conglomerate, in business conglomerate, corporation whose asset growth, often very rapid, comes largely through the acquisition of, or merger with, other firms whose products are largely unrelated to each other or to that of the parent company. that owns the Giant Food supermarket chain along the East Coast. "In order to meet the requirements (of the contract) we had to go and invest in new hardware," he said. Agribuys sells software linking farming companies with food distributors and supermarkets via the Internet. By far the biggest deal announced was $24 million that went to Dune dune, mound or ridge of wind-blown sand formed in arid regions and along coasts. Dunes are common in most of the great deserts of the world. Often a dune begins to form because material is deposited by the wind as it encounters a bush, a rock, or other obstacle to Networks Inc., an L.A. company whose semiconductor products aim to make it possible for Internet service providers Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. to handle more traffic. The deal was rare, in that the money was Dune's first VC investment to date. "It was tough, but it was possible," said Michal Kahan, Dune's vice president of marketing and product development. Growthink compiles it information by scanning news reports in addition to surveying companies and venture capitalists. All numbers are verified with the companies listed. Growthink only provides information for private, U.S.-based firms that have received at least $300,000 in equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. .
Funding Down
Technology firms continue to dominate list of recipients, most in
follow-on rounds
Name City
Dune Networks Agoura Hills
Adexa Los Angeles
AudioAudit Manhattan Beach
Vantage Oncology Manhattan Beach
Blue Falcon Los Angeles
Pentadyne Chatsworth
Vizional Technologies Santa Monica
Applied Wave Research El Segundo
Nomadix Westlake Village
MEMGen Burbank
Agribuys Torrance
CarParts Technologies El Segundo
Savacor Los Angeles
ViaLogy Pasadena
Symblaze Los Angeles
Name Description
Dune Networks Semiconductors for communication platforms
Adexa Strategic, financial and supply chain planning
AudioAudit Business solutions for advertising and broadcast
industries
Vantage Oncology Radiation oncology centers
Blue Falcon Streaming live and on-demand content
Pentadyne Compact power systems
Vizional Technologies Inventory, order fulfillment and private
trading exchanges
Applied Wave Research Software for wireless, high-speed and
electroc-optical applic.
Nomadix Software for wireless systems
MEMGen Manufacturing of microscale devices
Agribuys Supply chain software for the food industry
CarParts Technologies Software for the automotive aftermarket
Savacor Implantable medical devices
ViaLogy Signal processing technology for drug companies
Symblaze Interactive marketing
Funding
Name (in millions)
Dune Networks $24
Adexa 15
AudioAudit 9
Vantage Oncology 9
Blue Falcon 8.5
Pentadyne 8
Vizional Technologies 8
Applied Wave Research 7.4
Nomadix 7
MEMGen 5.7
Agribuys 5
CarParts Technologies 5
Savacor 3
ViaLogy 5
Symblaze N/A
Source: Growthink
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