San Diego’s Top 10 Third-Quarter Venture Deals

10/20/08Follow @bbuderi

In case the word hasn’t quite gotten around, things are not pretty on the San Diego investment scene. As Greg wrote on Saturday, venture capital outlays in the third quarter fell to just $178.4 million, a 52 percent nosedive from the previous quarter and the most dismal quarterly showing for the region since Q1 of 2005, according to the new quarterly MoneyTree report from PricewaterhouseCoopers and the National Venture Capital Association.

What’s more, whereby the region had ranked 5th in the first quarter and 6th in the second, it fell to 13th place in the third quarter out of 18 regions tracked by the study. Only 22 venture deals were done in San Diego in the quarter, down from 38 the previous quarter and 41 for the same period a year earlier. This was also the lowest deal total since Q1 of 2005.

The nearby Los Angeles/Orange County region fared much better, with $572.5 million invested in 54 venture deals for the quarter, down just a bit from the $593.8 million from the previous quarter and up over Q1. The area ranked third in the nation for the quarter, behind only Silicon Valley and New England.

However downbeat the situation in San Diego, though, some big deals were done—starting with San Diego’s own The Active Network, which raised $80 million to help it provide online registration and other services for a variety of sporting events and activities. In fact, five area firms, in fields as diverse as energy, personal transportation, and security for pay TV, closed rounds of $20 million or more.

Following is a list of the area’s top 10 venture deals for the third quarter —and the venture investors behind them.

The Active Network, San Diego, CA — $80 million
Investors: Citi Alternative Investments, Credit Suisse Customized Fund Investment, Good Energies, PCG Asset Management, US Renewables Group

Sapphire Energy, Del Mar, CA — $40 million
Investors: Arch Venture Partners, Cascade Investment, Venrock, Wellcome Trust

PowerGenix Systems, San Diego, CA — $30 million
Investors: Angeleno Group, Bessemer Venture Partners*, Element Partners, Granite Ventures, MILCOM Technologies, OnPoint Technologies, Technology Partners

Aptera Motors, Carlsbad, CA — $24 million
Investors: Google, Idealab, Individual Investors

Verimatrix, San Diego, CA — $20 million
Investors: Cipio Partners, Crescendo Ventures, Goldman Sachs Ventures*, JK&B Capital, Mission Ventures, SunAmerica Ventures

ISE, Poway, CA — $17.5 million
Investors: DTE Energy Ventures, Inc., NGP Energy Technology Partners, RockPort Capital Partners, Siemens Venture Capital

Sequoia Communications, San Diego, CA — $10.1 million
Investors: BlueRun Ventures, Tallwood Venture Capital

Daylight Solutions, Poway, CA — $5 million
Investors: Not available

Legend Films, San Diego, CA — $5 million
Investors: Augustus Ventures*

AndroScience, San Diego, CA — $4 million
Investors: Grand Cathay Venture Capital, Industrial Bank of Taiwan

* lead investor

Source: Dow Jones VentureSource

Bob is Xconomy's founder and editor in chief. You can e-mail him at bbuderi@xconomy.com, call him at 617.500.5926. Follow @bbuderi

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