PE Week Wire — 10/24/06

Q3 Venture Capital Totals: Venture Capitalists invested $6.2 billion in 797 deals in Q3 of 2006, a decrease of eight percent from Q2, according to the MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association, based on data by Thomson Financial (publisher of PEW Wire ). The quarter saw increased investment in seed and early stage deals as well as sectors such as telecom, media and entertainment and industrial and energy. First time financings were also strong.

Starbucks (Nasdaq: SBUX) bought control of the Chinese operator of 60 Starbucks stores from H&Q Asia Pacific and other shareholders. The management entity that has run the stores, Beijing Mei Da Coffee Co. Ltd., opened the first Starbucks store in China in 1999. Financial terms of the deal were not disclosed.

FPT Corp., a Vietnamese information and communication technology provider, received $36.5 million from Texas Pacific Group and Intel Capital. The investment is one of the largest foreign investments into Vietnam. The company plans to use the funding to develop new products and services.


    VC Deals

Cleantech investing in North America hit a record $933 million in Q3 2006 investment, according to the Cleantech Venture Network. It was the 9 th consecutive quarter of growth. Clean energy investments were the favorite among investors, raking in $837 million in investments in Q3, a 41% increase over Q2.

Tablus, a San Mateo, Calif.-based content protection service provider, raised $16 million in Series B funding from Trident Capital and Menlo Ventures. Trident Capital's Peter Meekin will join the company's board of directors.

Skyrider, a Mountain View, Calif.-based peer-to-peer networking platform provider, raised $12 million in Series C funding. ComVentures led the round, which included previous investors Sequoia Capital and Charles River Venture Partners. The company has raised a total of $20 million.

GetWellNetwork, a Bethesda, Md.-based provider of software, hardware and other services to aid healthcare providers care for patients, closed a $9 million Series B round of funding. Valhalla Partners led the round, which included previous investors The Grosvenor Funds, Point Judith Capital, Long River Ventures, Village Ventures and Tall Oaks Capital.

DeviceVM, a San Jose, Calif.-based software developer that uses virtualization technology, raised more than $10 million from Storm Ventures, DFJ DragonFund China, Tim Draper, AsusTek Computer, iD Innovation, Harbinger Ventures and strategic and angel investors.

NewStep Networks, a Toronto-based provider of fixed-mobile convergence services, raised $7 million in Series B funding from existing investors, including VenGrowth Private Equity Partners.

Edgeio, a Menlo Park, Calif.-based online classified ad service developer, has raised $5 million in a first round of funding led by Intel Capital and including Transcosmos, according to VentureBeat.

Zebra Imaging, an Austin, Texas-based display technology product developer, raised $5.9 million in Series C funding. Voyager Capital led the round, which includes Nuevo Private Equities and SAIC Venture Capital. The company will use the funding for product development and business expansion.

Neocase, a San Francisco-based provider of customer service software, raised $6.5 million in its second round of venture funding. Iris Capital led the round, which included Caisse des Depots et Consignations (CDC) and Supporter Group. The company will use the new capital to expand internationally.

CMP Therapeutics raised $5.6 million (