Baby Breaker Birth Announcements

Welcome back to Baby Breakerdom! This week, we find a pharmaceutical start-up buying success, a potential resurgence in the market for voice and data networking equipment, and a new record for venture capital (VC) fundraising.

Thursday, antibiotic developer Protez Pharmaceuticals completed a $15 million second round of financing. Government grants, venture capital, and convertible debt from a group of angel investors were among the various sources of funding. Protez appears to be following in the footsteps of BEA Systems (Nasdaq: BEAS  ) by acquiring products and companies to build itself into something greater. BEA used its seed funding to buy the TUXEDO transaction monitor from Novell (Nasdaq: NOVL  ) . It then purchased privately held WebLogic to become a leader in application servers. Protez is on an acquisition streak that, most recently, landed it a new compound for fighting treatment-resistant infections from Japan's Sumitomo Pharmaceuticals, according to VentureWire.

Hasn't high-speed telecom equipment gone the way of the dodo? Apparently not. Alloptic, which makes boxes that deliver voice, video, and data over fiber-optic lines, landed $30 million more in VC funding this week to challenge entrenched competitors Avaya (NYSE: AV  ) , Cisco (Nasdaq: CSCO  ) , and Nortel (NYSE: NT  ) . The company has raised more than $120 million over five funding rounds, also according to VentureWire.

That would seem like a lot -- until you read the numbers on VC fundraising for the second quarter. Industry researcher VentureOne reports that U.S.-based VC firms raised more than $6 billion in new funds during the second quarter. That's the most in almost four years. It's also more than double the $2.3 billion raised during the same period a year ago, and it's more than 80% higher than the first quarter. For the first time in a long while, it's good to be in the VC business. That could be very good news for Rule Breaking investors.

Sadly, we've nothing new to report in public offerings. But, as always, we'll keep looking. See you back here next week!

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Fool contributor Tim Beyers wonders what his private equity valuation would be. He asks that you send him an email if you have the slightest idea. Tim owned stock in none of the companies mentioned in this story at the time of publication. You can find out what's in his portfolio by checking Tim's Fool profile, which is here. The Motley Fool has an ironclad disclosure policy.


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