Virginia Venture Newsletter

An Update on CIT GAP Funds and Venture Investment in the Commonwealth

Curated by Jen O'Daniel (@DCVCJen), Senior Associate @CITGAPFunds

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About the CIT GAP Funds
CIT GAP Funds makes seed-stage equity investments in Virginia-based technology, energy, and life science companies with a high potential for achieving rapid growth and generating significant economic return.  Follow CIT GAP Funds on Twitter @CITGAPFunds.

GAP Investment Advisory Board

 

Ken Carter
Noble Life Sciences
 
Al Christopher
DMME
 
Joseph D'Amico
Alpha Natural Resources
 
Paul Duncan
GDS Energy Consultants
 
Hiram Ewald Tall Oaks Capital   Steven Ferguson
NIH

 

J.S. Gamble
Blu Venture Investors

 

Mike Graninger
In-Q-Tel

 

Tom Grossi
New Enterprise Associates
 
Peter Jobse
Center for Innovative Technology
 
Matt Lecar
GE Energy
 
Lenard Marcus
Edison Ventures

 

Cody Nystrom
SJF Venutes
 
Bobby Ocampo
Grotech Ventures
 
Edmund Pendleton
Entrepreneur

 

Dr. Bruce Robertson 
H.I.G. BioVentures  
 
Paul Singh
500 Startups
 
Egle Thomas
IALR
 
John Uhrin
 
S. Tien Wong
Opus8
 
Steve Weinstein
Novartis Venture Fund
 
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GAP Investment Team

 

Tom Weithman

Managing Director

thomas.weithman@cit.org

 

Alex Euler

Investment Director

alex.euler@cit.org

 

Sean Mallon

Senior Investment Director

sean.mallon@cit.org

 

Dan Mindus

Investment Director

dan.mindus@cit.org

 

Jen O'Daniel

Senior Associate

jennifer.odaniel@cit.org

 

Marco Rubin

Fund Advisor

marco.rubin@cit.org

 

Veronica Waters

Executive Assistant

veronica.waters@cit.org

 
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Recent Venture Activity   
According to the The MoneyTree™ Report by PricewaterhouseCoopers and the National Venture Capital Association based on data from Thomson Reuters, VCs invested $6.4 billion in 968 deals nationwide in Q4 2012, of which 515 deals were considered seed or early stage. 
  
PwC/NVCA reported that early stage companies attracted 30 percent of dollars and 44 percent of deals in 2012 compared to 30 percent of dollars and 39 percent of deals in 2011. 
  
PwC/NVCA also reported that investments into seed stage companies decreased 31 percent in terms of dollars and 38 percent in deals with $725 million going into 274 companies in 2012, the lowest annual seed dollars since 2003.  For the fourth quarter, venture capitalists invested $156 million into 67 seed stage companies, the lowest quarterly dollar investment since 2005.  Seed Stage companies attracted 3 percent of dollars and 7 percent of deals in 2012 compared to 4 percent of dollars and 11 percent of deals in 2011.        
Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTreeTM Report, Data: Thomson Reuters.
PwC/NVCA reported, that during Q4 in Virginia, VCs invested $67M in 25 companies (Note: the report lists 26 investments, listing Lewis & Clark twice), doubling the number of deals as compared to Q3.  Fifteen of the deals are CIT GAP Funds portfolio companies.

 

PwC/NVCA reported that in 2012, investment into Virginia-based early stage companies increased 174 percent in terms of dollars and 120 percent in deals with $46.2 million going into 36 companies. For the fourth quarter, venture capitalists invested $7.2 million into 9 seed stage companies.  
  
Source: PwC/NVCA MoneyTree Report.
   

Seventeen of the 25 companies are located in Northern Virginia, one is in the Roanoke/Blacksburg area, one is in the Richmond area, two are in the Norfolk/VA Beach area, and four are in the Charlottesville area. 

Source: PwC/NVCA MoneyTree Report
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4Q 2012 Venture Activity in Virginia:

(as reported by the PwC/NVCA MoneyTree Report

  

Seed and Early Stage

Con3nt, a Dulles, VA-based provider of a real-time market for photo and video journalism, closed a round from CIT GAP Funds.

 

CVCertify, a Dulles, VA-based developer of an online work history certification platform, closed a $540K round from LiveOak Venture Partners.

 

CIT GAP Funds portfolio company, Distil, an Arlington, VA-based provider of cloud-based software designed to protect online content, preserve search engine rankings and improve ad revenue, closed a $1.8M round from Correlation Ventures, IDEA Fund Partners, and an undisclosed firm.

 

Lewis and Clark Pharmaceuticals, a Charlottesville, VA-based developer of adenosine-based pharmaceutical compounds for autoimmune disease, closed a $100K round from CIT GAP Funds.

 

Mobile Systems 7, a McLean, VA-based provider of a security product that uses credit card style analytics for enterprise data, closed a $750K round from CIT GAP Funds and an undisclosed firm.  

 

CIT GAP Funds portfolio company, Mpowerplayer (aka AppTap), a Herndon, VA-based provider or application recommendation services and advertising network, closed a $150K round from New Atlantic Ventures.

 

CIT GAP Funds portfolio company, PublicRelay, a Reston, VA-based media monitoring and analytics solution company, closed a $1.5M round from an undisclosed firm.

 

CIT GAP Funds portfolio company, Speek, a Sterling, VA-based provider of conference call solutions, closed a $1.2M round from undisclosed investors.

 

Veenome, an Arlington, VA-based video intelligence company, closed a $600K round from CIT GAP Funds, Ecosystem Ventures, India Venture Partners, and undisclosed firms.

 

Xdynia, a Charlottesville, VA-based drug development company, closed a $100K round from CIT GAP Funds.

 

YaSabe, a Herndon, VA-based provider of business and local information in Spanish, closed a $500K round from CIT GAP Funds and an undisclosed firm.

 

Zoomdata, a McLean, VA-based virtual data analytics product company, closed a $1.1M round from CIT GAP Funds and undisclosed firms.

 

Later and Expansion Stage

DubMeNow, a Vienna, VA-based provider of applications to communicate, network and exchange information, closed a $1.5M round from Grotech Ventures.

 

HemoShear, a Charlottesville, VA-based creator of human relevant systems that accurately replicate the biology of organ systems and diseases throughout drug discovery and development, closed a $4M round from an undisclosed firm.  

 

Innocoll, an Ashburn, VA-based developer of biodegradable surgical implants, closed a $2M round from Newsmith Asset Management.

 

Intrexon, a Blacksburg, VA-based next generation synthetic biology company, closed a $25M round from Third Security.

 

CIT GAP Funds portfolio company, IntroHive, a Sterling, VA-based provider of a platform that enables companies to leverage and analyze their enterprise and employee data to get introductions to sales leads, closed a $1.8M round from GrowthWorks Capital and undisclosed firms.

 

CIT GAP Funds portfolio company, Invincea, a Fairfax, VA-based provider of desktop security software and a threat intelligence network appliance for protecting enterprise, government and home users from internet attacks, closed a $7.25M round from CIT GAP Funds, Grotech Ventures, Harbert Venture Partners, and New Atlantic Ventures.

 

CIT GAP Funds portfolio company, Latista Technologies, a Reston, VA-based provider of field management software and services, closed a round from undisclosed investors and CIT GAP Funds.

 

LogiXML, a McLean, VA-based provider of business intelligence software, reporting and analysis solutions, closed a $1.25M round from Summit Partners.

 

Perfect Commerce, a Newport News, VA-based provider of B2B commerce solutions closed a $6M round from an undisclosed firm.

 

Privia, a Herndon, VA-based provider of bid management software, closed a $2.1M round from Golf Capital Partners, Open Prairie Ventures, and an undisclosed firm.

 

Soluble Systems, a Newport News, VA-based manufacturer of sterile wound care dressings, closed a $2.7M round from Envest Private Equity.

 

CIT GAP Funds portfolio company, Tau Therapeutics, a Charlottesville, VA-based developer of T-channel terapeutics to treat cancer, closed a $3M round from undisclosed investors.

 

WellAWARE Systems, a Glen Allen, VA-based provider of wellness monitoring solutions for senior care providers, closed a $2M round from .406 Ventures.