Not Many Regional Tech Firms, VCs Heading to Altar

RALEIGH … June is the month for weddings, but the first week of the month saw just two marriages between Southeast technology companies and venture capitalists.

After the region saw 10 venture deals in the last two weeks of May, the financing scene cooled off tremendously last week, with just two small deals in North Carolina. Georgia once again remains an old maid in the match-making industry.

Research Triangle Park-based Tranzyme added $1 million to its second round through a strategic Japanese investor, while StemCo Biomedical of Durham added a bit of angel funding to its second round.

The Carolinas and Georgia now have posted to 48 deals for the year, totaling $282 million. That compares with more than $484 million in 59 deals at this point a year ago.

Here is LTW’s exclusive list, ranked according to the size of the deal, for the Carolinas and Georgia:

Company; Sector; Amount (Round)

Investors: Kohlberg Kravis Roberts, M/C Ventures, Quadrangle Group, Vaxa Corporate Partners and Wachovia Partners

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

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

3. Prenova, Marietta, Ga.; IT services; $15.5 million (3rd)

Investors Frontenac (lead) Austin Ventures and River Cities Capital Funds

4. Targacept, Winston-Salem, N.C.; 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

5. STI Knowledge, Atlanta; Software; $14 million (1st)

Investors: Satish Sanan (individual lead) BV-Cornerstone Ventures and Mellon Ventures

6. Ziptronix, Morrisville, N.C.; Hardware; $13.9 million (2nd)

Investors: Grotech Capital Group (co-lead), Intersouth Partners (co-lead), iSherpa Capital and MCNC Enterprise Fund

7. TranS1, Wilmington, N.C.; Medical devices; $12 million (2nd)

Investors: Advanced Technology Ventures (lead), Cutlass Capital, Delphi Ventures and Sapient Capital

8. nuBridges, Atlanta; Software; $11 million (2nd)

Investors: hf Flagship Investments (lead), C&B Capital, GMT Capital, Noro-Moseley, Tycho and Marie Hawle Foundation and individuals

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

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

10. Ephinay, Charlotte; Services; $10 million (1st)

Investors: Chrys Capital

10. StemCo Biomedical, Durham; Biotech; $10 million (2nd)

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

12. CipherOptics, Raleigh; IT services; $9.6 million (2nd)

Investors: Kodiak Venture Partners (lead), Axiom Venture Partners, New Tampa Technologies and Origin Partners

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

Investors: Charles River Ventures and General Catalyst Partners

14. Brickstream, Atlanta; Software; $6.2 million (1st)

Investors: Columbia Capital and Mohr Davidow Ventures

15. Lancope, Alpharetta, Ga.; IT Services; $5 million (2nd)

Investors: HIG Ventures and GMG Capital Partners

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

Investors: Soros Equity Partners

15. VisionAIR, Castle Hayne, N.C.; Software; $5 million (NA)

Investors: Banc of America Capital Investors (lead), Covestco, GE Capital and Southeast Interactive Technology Funds

18. MediaSpan Group, Durham; IT services/software; $4.5 million (1st)

Investors: Covesco-Seteura, Rustic Canyon Group and Southeast Interactive Technology Funds

19. HAHT Commerce, Raleigh; Software; $4.1 million (3rd)

Investors: Banc of America Capital Investors, Canaan Partners, CIBC Capital Partners and Granite Ventures

20. Q1 Labs, Atlanta; Software; $3.3 million (1st)

Investors: Business Development Bank of Canada and New Brunswick Investment Management

21. Flexlight, Atlanta; Networking; $3 million (2nd)

Investors: Coral Ventures and Concord Ventures

21. Quellan, Atlanta; Hardware; $3 million (2nd)

Investors: Cordova Intellimedia Ventures, Greenspring Ventures, ITU Ventures, National Semiconductor, University Financing Foundation and Yamacraw Seed Capital Fund III

23. CoreCard Software, Norcross, Ga.; Software; $2.5 million (NA)

Investors: Intelligent Systems

24. Qcept Technologies, Atlanta; Hardware; $2.1 million (NA)

Investors: Pittco Capital Partners (lead), Atlanta Technology Ventures and Bergman & Associates

25. Relativity Technologies, Cary, N.C.; Software; $2 million (4th)

Investors: Noro-Moseley Partners and Wakefield Group

25. AvidXchange, Charlotte; Software; $2 million (2nd)

Investors: Charlotte Angel Partners, Piedmont Angel Network and and individuals

25. Auctionworks, Atlanta; Software; $2 million (2nd)

Investors: Undisclosed

25. NuTech Solutions, Charlotte; Software; $2 million (3rd)

Investors: Individuals

29. ChemCodes, Durham; Biotech; $1.8 million (3rd)

Investors: Intersouth Partners

30. RSS Solutions, Greenville, N.C.; Software; $1.6 million (1st)

Investors: EdgeStone Capital Partners

31. LiveWire Logic, Morrisville, N.C.; Software; $1.5 million (3rd)

Investors: Gray Ventures and Research Triangle Ventures

31. Trinity Security, Charlotte; IT services; $1.5 million (1st)

Investors: Venture Capital Solutions

33. Synthematix, Durham; Software; $1.25 million (2nd)

Investors: Catalysta Partners and individuals

34. InsLogic Holding, Columbia, S.C.; IT services; $1.1 million (7th)

Investors: Warburg Pincus

35. ISIC, Cary, N.C.; Hardware; $1 million (Seed)

Investors: Academy Funds and MCNC Seed Fund

35. Unitrends Software, Myrtle Beach, S.C.; Software; $1 million (1st)

Investors: Trelys Ventures

35. Tranzyme, Research Triangle Park, N.C.; Biotech; $1 million (2nd)

Investors: Shin Nippon Biomedical Laboratories

38. AfterBOT, Norcross, Ga.; Software; $835,000 (2nd)

Investors: River Cities Capital Funds

39. iReadyWorld, Charlotte; IT services; $650,000 (4th)

Investors: Total Technology Ventures

40. SAK Logistics, Atlanta; Software; $500,000 (1st)

Investors: Individuals

41. Metabolon Pharmaceuticals, Research Triangle Park, N.C.; Biotech; $300,000 (Seed)

Investors: Aurora Funds

42. Noverant, Raleigh; Software; $266,000 (Seed)

Investors: Research Triangle Ventures and individuals

43. Coventor, Cary, N.C.; Hardware; $250,000 (NA)

Investors: Undisclosed

44. StrikeIron, Raleigh; Software; $150,000 (Seed)

Investors: Aurora Funds

45. RYLA Teleservices, Woodstock, Ga.; IT services; $100,000 (2nd)

Investors: Sustainable Jobs Fund

46. VT Silicon, Atlanta; Hardware; NA (Seed)

Investors: ITU Ventures

46. International IT Services, Raleigh; IT services; NA (1st)

Investors: WellFound Technology

46. Navigational Sciences, Charleston, S.C.; IT services; NA (1st)

Investors: Individuals