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To: XBrit who wrote (21540)	7/27/2004 1:57:17 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 57684

funny you mention mountain view. When I drive through mountain view, on that torn up piece of 101 (btw that stretch of 101 is starting to feel like that Sisiphus guy in greek mythology pushing the boulder up the hill... with "never" as the completion date)... there is a bunch of traffic just like the old SV days. I thought it was all google. San Mateo where the enterprise software world used to live is still relatively traffic free, and past mtn view on 101 which is the old networking hardware area after the 237 interchange is empty. We can pick what to invest in based on traffic patterns. Networking hardware and enterprise software- no recovery. If a company doesn't have its HQ in mtn view, don't invest. Simple!

To: XBrit who wrote (21540)	7/27/2004 6:15:20 PM
From: stockman_scott	Respond to of 57684

Venture Capital Investing Rises In 2Q, Study Shows ___________________________ By MARK BOSLET Of DOW JONES NEWSWIRES July 27, 2004 PALO ALTO, Calif. -- Venture capitalists invested $5.58 billion into 761 companies in the second quarter, a more than 10% increase in dollars and companies from the first quarter, according to a survey of the market. The spending suggests a gradually improving investment environment in an industry that has ebbed since the height of the dot-com boom, when quarterly spending could be four times as great. It also contrasts with a separate study released Monday showing a 3% decline in second-quarter spending to $5.1 billion. The latest study, by PricewaterhouseCoopers, Thomson Venture Economics and the National Venture Capital Association, shows venture investing reached a two-year high in the second quarter. To be release Tuesday morning, the survey also found that seed and early-stage investing made up 37% of the investments, a level not seen since the first quarter of 2001. "We see a lot of experienced entrepreneurs coming back into the market," Chad Waite, a general partner at OVP Venture Partners, said on a conference call announcing the quarterly results. In Monday's study from Ernst & Young and VentureOne, which is owned by Dow Jones & Co., spending on biopharmaceutical startups was found to have slipped 45% to $810 million, and funding for healthcare companies in general fell 20%. Tuesday's study confirms the decline in biotechnology spending, but found an increase in the money spent on medical- devices, medical-equipment and healthcare-services companies. Software proved the largest category of investment, with $1.2 billion going to 212 companies, the PricewaterhouseCoopers, Thomson Venture Economics and National Venture Capital Association report found. Spending on networking companies of $459 million rose after falling in the first quarter, and investments in telecommunications companies fell 5% to $518 million. In the first quarter, venture capitalists invested $5 billion in 686 companies. In the second quarter last year, investments came to $4.8 billion and 727 companies were funded. VCs on the conference call said they continued to see an active fund-raising market for venture firms. Waite said a limited partner he knows estimates about 25% of the industry's firms are out raising new funds. It is "almost disconcerting the number of phone calls" Morgenthaler Ventures gets from limited partners who want to participate in the firm's next fund, which is planned for next year, said Robert Pavey, a general partner. He said he believes there is "at least $20 billion in demand" from limited partners across the industry. By Mark Boslet, Dow Jones Newswires, 650 496 1366; mark.boslet@dowjones.com