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Dealflow.com provides software for deal tracking, deal marketing, and transaction analysis. Our database and editorial products address the growing importance of the social web and the marketing of private placements and other financial transactions on the Internet. We are focused on the intersection of finance with social media, and the increasing use of the Internet to market capital-raising transactions. Dealflow.com features a database of deals, related deal terms, and due diligence information for open, or actively marketed, transactions. We offer insights into both public and private company transactions, investment fund transactions, and other financial transactions that are marketed over the Internet and through offline media.
Featured ArticleMay 14, 2014
Venture Capital Dealflow April 26 to May 9
This article is an edited excerpt from one published in Dealflow.com's venture capital newsletter. If you would like to receive our newsletter and read the article in its entirety, sign up — it's free.
In this issue we track deals from the most recent two-week reporting period, which covers April 26 through May 9.
A reminder about the reporting period: It corresponds to the publication schedule of the newsletter, which takes place every other week. We do not report finalized or closed deals. Instead, each publication tracks launched financings -- open or actively marketed venture and growth deals from the previous two weeks. The focus is on startup and venture companies, although our mandate includes entities of all sizes.
Deal sources include online investment portals, media reports and advertisements, social media, regulatory filings and investor emails. Regulatory filings are excluded if they involve deals that are closed before the reporting period ends or involve companies raising an indefinite sum. We do not cover publicly traded companies in our venture capital newsletter analysis or data.
During the reporting period, Dealflow.com tracked the announcement of 556 launched fundraisings for privately-held companies worth a total of $5,217,337,302 in aggregate value. Data also includes 29 Rule 506(c) fundraisings seeking a total of $305,435,987.
The average deal size was $10.7 million. The 406 offerings represented by regulatory filings averaged $12.6 million. Deals from portals, company websites and social media sources averaged $1.4 million.
In transactional numbers, the information technology sector drove the largest number of deals, with 181 or 32% of the total. Consumer discretionary was next with 88, while financials and healthcare accounted for 76 and 70 respectively. The other sectors were responsible for 41 (energy) or less.
In aggregate dollar value, real estate's $2.97 billion accounted for 56% of the total. Over two thirds of this originated in a pair of $1.25 billion offerings from a west coast real estate investor. The San Francisco-based company manages real estate funds, owns commercial properties in numerous states across the country and leases properties. Multi-family residential developer
Another capital raiser is funding a complex whose construction will begin this summer in a location close to Scottsdale, Ariz. The development will be based around two million gallons of marine fish and invertebrate exhibits.
Healthcare was the next largest drive of deal dollars, with $556.6 million or 10% of the total. Deals ranged in magnitude a $97,500 offering to a $100 million deal.
As usual, the information technology deals ranged from several offerings from companies seeking $50,000 or less on funding portals, while others ran as high as $70 million. Numerous early-stage startups were also raising.
Financials were responsible for $344.4 million in dollar value, or 6% of the total.
Energy offerings also accounted for about 6% of the total. Companies seeking capital included oil and gas explorers as well as green energy providers.
Rule 506(c) deals averaged $19.53 million. Among the financings was a $33 million offering from TechShop, the open-access industrial workshop provider that started out in 2006 with a do-it-yourself workshop in Menlo Park, Calif. Now it operates facilitates in several states, where enthusiasts can rent anything from a sewing machine to a plasma cutter.
The two largest Rule 506(c) offerings came from the real estate and energy sectors. Renovate America is raising $50 million to fund its utility efficiency-based construction, remodeling and financing business. Energy explorer Santa Rosa Resources, which is raising $35 million, has acquired drilling rights in two Central California counties and has also established an accredited investor page on its website.
Most of the 506(c) offerings came from the information technology sector, whose offerings accounted for 33% of the transactions and 16% of the aggregate dollar value. Financials accounted for only eight of the offerings but represented almost $80 million, or about 26% of the total dollars.
One of the three consumer discretionary offerings came from Stance, which is raising $29.6 million. Stance makes stylish socks and footwear sold in outlets in Brooklyn and Southern California's Monrovia.
Please subscribe to the newsletter if you wish to read the article in its entirety with specific deal references.
Steven Dresner is the founder and CEO of Dealflow.com which provides software for deal marketing and transaction analysis. Steven's experience includes managing businesses in the areas of software development, financial databases, and media. Steven has a BS in psychology and both an MBA in finance and a graduate degree in computer communications and networks. Steven is co-author and editor of two prior books on financing strategies includingPIPEs (Bloomberg Press) and Reverse Mergers (Bloomberg Press) and has spent much of his time helping small companies successfully raise capital.