N.C. Venture Activity Slow But Steady

If North Carolina could continue posting one new venture deal a week, it would be well on its way to rebounding from one of its worst venture capital quarters in years.

Last week, Durham-based MediaSpan Group, which provides software and manages websites for print publishers and broadcast companies, obtained $4.5 million from current investors.

But the deal brings the North Carolina total for venture capital for the year only to $105 million in 17 deals. By early May a year ago, the state had seen 24 deals for almost $120 million.

The slow market is reflected in the latest MoneyTree Survey, which placed the state 14th nationally amid a five-year low in venture deals.

Here is LTW’s exclusive list of North Carolina venture deals, ranked according to the size of the investment:

Company; Sector; Amount (Round)

1. TransTech Pharma, High Point; Pharmaceutical; $24 million (2nd)

Investors: MacAndrews & Forbes (lead), Cephaton and Novo Nordisk A/S

2. Targacept, Winston-Salem; Biotech; $14 million (2nd)

Investors: Nomura International Healthcare Private Equity Group (lead), Bison Capital, Cogene Biotech Ventures, JAFCO, Oxford Bioscience Partners and Rock Castle Ventures

3. Arsenal Digital Solutions, Cary; IT services; $10.5 million (4th)

Investors: Covestco, Southeast Interactive Technology Funds and Southern Cross Capital

4. Ephinay, Charlotte; IT services; $10 million (1st)

Investors: Chrys Capital

5. StemCo Biomedical, Durham; Biotech; $9.8 million (2nd)

Investors: Aurora Funds (co-lead), Intersouth Partners (co-lead), BD Ventures, Tall Oaks Capital and Trelys Venture Partners

6. OrthoNeuro, Charlotte; Medical; $8.5 million (NA)

Investors: New Enterprise Associates

7. Venetica, Charlotte; Software; $7 million (1st)

Investors: Charles River Ventures and General Catalyst Partners

8. Oculan, Raleigh; Networking; $5 million (4th)

Investors: Soros Equity Partners