Fewer but larger deals push November over $200 Million in financing.
November 2009 is a month that saw 10 financings in excess of $15 million each, plus the $400 million acquisition of PlayFish by Electronic Arts. This despite the number of deals tracking well below the roughly 25 deals per month that our Web 2.0 universe has generated in 2009 to date. Regarding the higher value deals, we observe two clear sector trends: investment in gaming companies approaching the market from a social networks perspective (e.g. PlayFish, Playdom, Zynga), and increased interest in Chinese online media companies (Ku6.com, Phoenix New Media, Qunar.com).
WHILE FUNDING ACTIVITY IS HEATING UP…
November – seventh month to close above $200 million in 2009: Total transaction value in the Web 2.0 universe for November ended at $203.4 million. The number of financings increased to 18, averaging $11.3 million each (vs. an average of $11.9 million over 17 deals as of last week). In comparison, total capital raised in October was $171.3 million, averaging $6.3 million (27 deals); September was $232.8 million, averaging $9.0 million (26 deals); and August was $221.6 million, averaging $7.6 million (29 deals).
… PUBLIC MARKETS PULL BACK
Market pull-back continues: Nineteen companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1), while 28 companies showed negative 1-week returns.
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