VentureWire, Friday, May 18, 2001 ,
 =09=09?=09
?=09VentureWire
=09Friday, May 18, 2001=09=09?
?=09CONTENTS| COMPANIES| INVESTORS| ADVERTISE| TELL A FRIEND=09VentureWire =
Index
=09=09'VentureWire
=09=09today: 710.0 ? -0.41%=09?
? =09=09
=09=09
=09=09top stories
=09=09
=09=09=01=07 Online Deliverer WhyRunOut.com Acquires Over 90% of PDQuick=20
=09=09=01=07 Red Herring Makes Third Round of Layoffs, Cuts 20%
=09=09=01=07 Vulcan Ventures Buys Small World Media
=09=09=01=07 MyCFO Acquires Seattle Firm, Cuts 10% of Staff
=09=09
=09=09UPCOMING EVENTS
=09=09Mobile Outlook 2001
=09=09Just announced! George Davis, Aether Systems, announced as keynote sp=
eaker.=20
Register to hear what he has to say!
=09=09
=09=09TODAY'S FEATURES
=09=09On The Road: Tradeworx Looks Good To Katalyst
=09=09By Taran Provost
=09=09Road shows are part of the business for John Fitzgerald, vice preside=
nt of=20
the Philadelphia-based investment banking house Katalyst.more>>
=09=09
=09=09
=09=09The Industry Standard
=09=09THE INDUSTRY STANDARD provides a critical and irreverent
=09=09look at how information and technology are changing the
=09=09rules of business.  Get the business intelligence you need
=09=09to stay ahead of the competition.
=09=09TRY THE INDUSTRY STANDARD -- RISK FREE.  Get 4 FREE issues
=09=09and find out why THE INDUSTRY STANDARD is the news magazine
=09=09you can't lead without.  Take advantage of this special
=09=09offer at:http://secure.thestandard.com/subscribe/7JAT
=09=09
=09=09
=09=09
=09=09Standard Life Launches First VC Trust
=09=09By Jonathan Shieber
=09=09Standard Life Investments, the Edinburgh-based subsidiary of The Stan=
dard=20
Life Assurance Company with GBP 78 billion ($111 billion) assets under=20
management, said it launched its first venture capital trust, Standard Life=
=20
European Private Equity Trust, with an anticipated market capitalization of=
=20
GBP 160 million.more>>
=09=09
=09=09Escalate Steps Up Acquisitions
=09=09By Jeffrey Sanders
=09=09Redwood Shores, Calif.-based Escalate, which provides enterprise e-co=
mmerce=20
applications for integrated selling, is actively pursuing up to four=20
additional acquisitions this year, president and CEO Keng Lim told=20
VentureWire.more>>
=09=09
=09=09IT Security Firm NFR Expands Internationally, Seeks Partners
=09=09By Lizbeth Scordo
=09=09NFR Security, which develops information security products, plans to =
double=20
its number of strategic partners, currently at 60 or 70, in the next twelve=
=20
months, open several international offices, and become profitable before th=
e=20
end of the year, CEO Jack Reis told VentureWire.more>>
=09=09
=09=09SmartSeed Raises First Institutional Fund=20
=09=09By Suzanne Segers Travers
=09=09Smart Seed of Vancouver, B.C., is raising its first institutional fun=
d, and=20
hopes to close on CAD $50 million ($32.5 million) by June, according to=20
general partner Shaheen Tejani.more>>
=09=09
=09=09
=09=09
=09=09
=09=09new money
=09=09
=09=09=01=07 Service Resources Gets $32.5 Million Round One, Appoints COO
=09=09=01=07 Elisabeth Murdoch's Shine Entertainment Gets $8.6M Round One
=09=09=01=07 Heart Treatment Tech Firm LifeLink MD Caps Series A at $1.6M
=09=09=01=07 Tech Publishing Firm FierceWireless Gets Seed Funding
=09=09=01=07 Pryor Resources Closes $18 Million Round Two
=09=09=01=07 Stick Networks Secures $12M in Initial Close of Series B=20
=09=09=01=07 TechHealth Gets Round Two Funds; Names Chairman, CEO
=09=09=01=07 eRealty.com Receives $15 Million in Second Round=20
=09=09=01=07 ERisk Raises $10 Million Second Round
=09=09=01=07 eVu Technology Secures $1M of a $3M Series B
=09=09=01=07 PureCarbon Lands Series B Funding
=09=09=01=07 SI Automation Raises $3.5 Million Second Round
=09=09=01=07 Visual Friendly Raises $1.9 Million
=09=09
=09=09
=09=09bad news
=09=09
=09=09=01=07 UltraDNS Lays Off 65% of its Staff; CEO Resigns
=09=09=01=07 PinPoint Networks Lays Off a Third of Staff=20
=09=09=01=07 Luxlook.com Goes Out of Business=20
=09=09
=09=09
=09=09new products
=09=09
=09=09=01=07 KorTeam Changes Name to Breveon
=09=09
=09=09
=09=09m&a
=09=09
=09=09=01=07 Exus Networks Acquires Broadband Access Firm Negen=20
=09=09=01=07 BondVision Acquires BondClick
=09=09=01=07 Manhattan Scientifics Acquires Teneo Computing
=09=09
=09=09
=09=09new directors
=09=09
=09=09=01=07 Broadband Tech Firm IPWireless Appoints Chairman
=09=09=01=07 Former McKinsey Exec Joins Board at Graviton=20
=09=09=01=07 Mobile Technology Firm Aeritas Appoints Chairman=20
=09=09
=09=09
=09=09new people
=09=09
=09=09=01=07 CEO of Healthcare Software Maker eMed Technologies Resigns
=09=09=01=07 Porivo Technologies Appoints Ex-NBC Internet Exec as CEO
=09=09=01=07 Infraworks Names New Chief Executive Officer
=09=09=01=07 InterCure Names New President and CEO=20
=09=09=01=07 Biotech Firm Metabolex Appoints President & COO
=09=09
=09=09
=09=09vc fund news
=09=09
=09=09=01=07 Suez Takes 18% Stake in Europatweb for $116 Million=20
=09=09=01=07 Sun Capital Partners Closes $200 Million Buyout Fund
=09=09
=09=09
=09=09vc personnel
=09=09
=09=09=01=07 Goldman Sachs Exec Joins iFormation as Managing Director
=09=09
=09=09
=09=09vw corrections
=09=09
=09=09=01=07 EYP Mission Critical
=09=09
=09=09TOP STORIES... NEW MONEY... BAD NEWS... NEW PRODUCTS... M&A... NEW=20
DIRECTORS... NEW PEOPLE... VC FUND NEWS... VC PERSONNEL... VW CORRECTIONS
=09=09
=09=09
=09=09top
=09=09
=09=09
=09=09Hot New Development - Mobile Outlook, June 5 & 6,
=09=09San Francisco Airport Marriott
=09=09
=09=09Exciting, new speakers have just been added to Mobile
=09=09Outlook. George Davis, vice chairman and president of
=09=09Aether Systems, will discuss how his company powers
=09=09mobile and wireless data services for Charles Schwab,
=09=09National Discount Brokers, Allegiance Health Care, the
=09=09U.S. Postal Service, Office Depot, Nissan, and more.
=09=09
=09=09With industry leaders and trendsetters such as George
=09=09Davis planning to be in attendance at Mobile Outlook,
=09=09why aren't you? Mobile Outlook is less than 3 weeks away,
=09=09so register online today:http://www.mobile2001.net/register.asp
=09=09
=09=09
=09=09
=09=09top stories
=09=09?
=09=09Online Deliverer WhyRunOut.com Acquires Over 90% of PDQuick=20
=09=09mail? top
=09=09
=09=09ALISO VIEJO, Calif.  (VENTUREWIRE) -- WhyRunOut.com, an online provid=
er of=20
neighborhood retail and delivery services in Southern California, said it=
=20
acquired over 90% controlling interest in PDQuick, an online delivery servi=
ce=20
of groceries and convenience products to customers in Southern California.=
=20
Financial details of the all-cash transaction were undisclosed.=20
WhyRunOut.com's CEO Daniel A. Frahm said the company hired 10 former PDQuic=
k=20
employees that were previously laid off but was planning on closing PDQuick=
's=20
Camarillo, Calif.-based headquarters. Prior to the acquisition PDQuick laid=
=20
off all of its 30-person staff. PDQuick could not be reached for comment, b=
ut=20
Mr. Frahm said PDQuick's CEO Dan Frederickson will not be working with the=
=20
acquired company. The acquisition allows WhyRunOut.com to service Los Angel=
es=20
and provide all of Southern California with delivery services. Mr. Frahm al=
so=20
said WhyRunout.com approached PDQuick about the acquisition. At the end of=
=20
April, PDQuick said it failed to r! aise additional capital and was looking=
=20
for buyers. The company had also tried to align with the online delivery=20
service Kozmo, which folded in April. PDQuick had raised over $35 million i=
n=20
three rounds from Brand Equity Ventures, Corber, GE Capital, Graystone=20
Venture Partners, Portage Venture Partners, St. Paul Venture Capital, TH=20
Lee.Putnam Internet Partners, and William Blair Capital Partners.=20
WhyRunOut.com, which is currently profitable, has raised an undisclosed=20
amount of funding in four rounds from individual investors.=20
=09=09http://www.pdquick.com
=09=09http://www.whyrunout.com
=09=09
=09=09
=09=09Red Herring Makes Third Round of Layoffs, Cuts 20%
=09=09mail? top
=09=09
=09=09SAN FRANCISCO (VENTUREWIRE) -- Red Herring Communications, a publishe=
r of=20
print and online news publications and an organizer of events covering the=
=20
high-tech industry, said it laid off 54 employees, or 20% of its staff. A=
=20
company spokesperson said most of the layoffs occurred in the online=20
division, but the corporate and events departments were also affected. Red=
=20
Herring laid off 32 employees in December and 22 in October. The spokespers=
on=20
said the company made the recent layoffs in response to the slowdown in pri=
nt=20
and online advertising and the outsourcing of some of its back-end=20
operations. He said the layoffs would not affect the online publication's=
=20
day-to-day operations, since the editorial staff has been working jointly=
=20
with the online division since October. The company does not anticipate mor=
e=20
layoffs. It recently closed a $15 million round of funding from previous=20
investor Broadview Capital Partners. Other investors include Broadview=20
Associates and ZDNet, which was acquired by CNET Networks! last October.
=09=09http://www.redherring.com
=09=09
=09=09
=09=09Vulcan Ventures Buys Small World Media
=09=09mail? top
=09=09
=09=09LOS ANGELES (VENTUREWIRE) -- Vulcan Ventures announced it has acquire=
d New=20
York-based Small World Media, which provides fantasy sports games and=20
operates smallworld.com. Small World Media will become part of The Sporting=
=20
News, which was acquired by Vulcan Ventures in February 2000. Terms of the=
=20
deal were not disclosed, but the deal was valued based on Small World Media=
's=20
discounted cash flows, cash flow projections, and membership base. Private=
=20
investment advisor Tom Cohen advised Small World in the deal. Backed by ove=
r=20
$20 million in funding from Flatiron Partners, Sports Capital partners, NBC=
,=20
and NBCi, Small World had been in discussions for acquisition for the past=
=20
year; it also anticipated reaching profitability in the fourth quarter this=
=20
year. Nineteen of the company's 22 former employees will join the=20
approximately 300-person staff at The Sporting News. Controller Pauline=20
Rutberg, COO Don Mathis, and executive vice president of corporate=20
development Leigh Randall have left the company. Sm! all Media will continu=
e=20
to operate in its New York offices and its founder and former CEO Mark=20
Jacobstein will become vice president and general manager of fantasy sports=
=20
of The Sporting News.
=09=09http://www.paulallen.com
=09=09http://www.smallworld.com
=09=09http://www.sportingnews.com
=09=09
=09=09
=09=09MyCFO Acquires Seattle Firm, Cuts 10% of Staff
=09=09mail? top
=09=09
=09=09MOUNTAIN VIEW, Calif.  (VENTUREWIRE) -- myCFO, which provides online =
and=20
offline wealth management services for high-net-worth individuals, told=20
VentureWire that it acquired Doran Anderson Nelson PS, an estate, investmen=
t,=20
and tax advisory firm based in Seattle. Financial details were not disclose=
d.=20
myCFO also said it eliminated 35 positions, or 10% of its staff, in the Web=
=20
content department two weeks ago because the company had outgrown the need=
=20
for those positions. myCFO, which currently has offices in Atlanta, Los=20
Angeles, and San Francisco, also said it was evaluating the acquisition of=
=20
another wealth management firm in the Boston area. The company said it=20
expects to reach profitability in the fourth quarter of this year. In total=
,=20
myCFO has raised $90 million in funding, including a $45 million third roun=
d=20
in March, from Amerindo Investment Advisors, Barksdale Group, Kleiner Perki=
ns=20
Caufield & Byers, Northern Trust Company, Presidio Venture Partners, RSA=20
Security, and individual investors.=20
=09=09http://www.mycfo.com
=09=09
=09=09
=09=09new money
=09=09?
=09=09Service Resources Gets $32.5 Million Round One, Appoints COO
=09=09mail? top
=09=09
=09=09ATLANTA (VENTUREWIRE) -- Service Resources, which provides management=
,=20
maintenance, energy, subcontracting, and material procurement services, sai=
d=20
it has closed $32.5 million in first-round funding from sole investor,=20
Frontenac Company. Frontenec gains two seats on the board as a result of th=
e=20
round, bringing the total number of directors to eight. The company said th=
at=20
the funds will be used for energy and field infrastructure and are expected=
=20
to bring the company to profitability in six to 12 months. The company=20
employs approximately 1,100 people. Service Resources also announced that=
=20
Michael Lustig has joined the company as its first chief operating officer.=
=20
Mr. Lustig had served as president and COO of Profit Recovery Group.
=09=09http://www.serviceresources.com
=09=09
=09=09
=09=09Elisabeth Murdoch's Shine Entertainment Gets $8.6M Round One
=09=09mail? top
=09=09
=09=09LONDON (VENTUREWIRE) -- Shine Entertainment, a television and film pr=
oduction=20
company owned by Elisabeth Murdoch, daughter of News Corp. chairman Rupert=
=20
Murdoch, and TV producer Waheed Alli, announced it has raised over GBP 6=20
million ($8.6 million) in first round funding. 3i led the round, while=20
LongAcre advised on the placing and Olswang provided legal counsel.=20
Co-founder Ms. Murdoch owns a majority of the company, while 3i, Mr. Alli,=
=20
and BskyB hold minority stakes. Post-money, the company garnered a valuatio=
n=20
of $32.2 million. As a result of this round, 3i gains a seat on the board.=
=20
Before this round, Ms. Murdoch had held 80% of the company, Mr. Alli held=
=20
15%, and BskyB held the remainder. The company said the funds will be used=
=20
for rights management and potential acquisitions. Shine Entertainment=20
launched in March 2001. Telephone 44-799-055-5295
=09=09
=09=09
=09=09Heart Treatment Tech Firm LifeLink MD Caps Series A at $1.6M
=09=09mail? top
=09=09
=09=09WASHINGTON (VENTUREWIRE) -- LifeLink MD, which provides full-service,=
 turnkey=20
technology to install automated external defibrillator programs designed to=
=20
normalize the heart during a sudden cardiac arrest, said it closed its Seri=
es=20
A at $1.6 million from return lead investor McDonnell & Associates, with=20
participation from Capital Investors and individuals. The money will be use=
d=20
for sales and marketing. The company raised $800,000 in seed funding in=20
February 2000 from McDonnell & Associates and individual investors. LifeLin=
k=20
MD is advised by the Washington-based law firm Hogan & Hartson.=20
=09=09http://www.lifelinkmd.com
=09=09
=09=09
=09=09Tech Publishing Firm FierceWireless Gets Seed Funding
=09=09mail? top
=09=09
=09=09WASHINGTON (VENTUREWIRE) -- FierceWireless, a publishing company dedi=
cated to=20
business intelligence regarding the mobile Internet, said it has raised an=
=20
undisclosed amount of seed round financing from Thiel Capital Management. T=
he=20
company said it plans to use the new funds for product development. As a=20
result of this financing, Ken Howery of Thiel Capital Management has been=
=20
granted a seat on the company's three-member board. FierceWireless plans to=
=20
officially launch its flagship product, a monthly publication geared toward=
=20
the mobile Internet-related markets, this June.
=09=09http://www.fiercewireless.com
=09=09
=09=09
=09=09Pryor Resources Closes $18 Million Round Two
=09=09mail? top
=09=09
=09=09OVERLAND PARK, Kansas (VENTUREWIRE) -- Pryor Resources, a business sk=
ills=20
training company, said it has raised $18 million in second-round financing=
=20
from co-leading existing investors Thayer Capital Partners, Patricof & Co.=
=20
Ventures. The company said that it expects funds from this round to carry i=
t=20
through the fourth quarter, near the time the company expects to reach=20
profitability. The company has raised a total of $126 million from Thayer a=
nd=20
Patricof. The company formed after the acquisition of CareerTrack by Fred=
=20
Pryor Seminars and later acquired e-learning company, e-train.com.
=09=09http://www.e-train.com
=09=09
=09=09
=09=09Stick Networks Secures $12M in Initial Close of Series B=20
=09=09mail? top
=09=09
=09=09DALLAS (VENTUREWIRE) -- Stick Networks, a developer of wireless Inter=
net=20
software, said that it has received $12 million in the initial closing of i=
ts=20
Series B round from Gryphon Partners, Venture Builders, and Viridian Capita=
l=20
Partners. Part of the money came from individuals including Ted Bauer,=20
co-founder of AIM Management Group and former vice chairman of Amvescap;=20
Charlie Jackson, former CEO of Airtouch Paging, acquired by Vodaphone; Davi=
d=20
Duffield, co-founder and former CEO of PeopleSoft; and Greg Kozmetsky,=20
president and CEO of Austin-based KMS Ventures. Additionally, the company=
=20
said it received strategic funds from an undisclosed consumer electronics=
=20
manufacturer. The company plans to spend the new funds for development,=20
operations, and product launch. As a result of this financing, private=20
investor Doug Bauer has been granted a seat on the company's four-member=20
board. Stick Networks anticipates to close this round between $20 million a=
nd=20
$30 million by early July. Prior to this round ! the company raised $2.5=20
million from unnamed individuals.=20
=09=09http://www.sticknetworks.com
=09=09
=09=09
=09=09TechHealth Gets Round Two Funds; Names Chairman, CEO
=09=09mail? top
=09=09
=09=09TAMPA, Fla. (VENTUREWIRE) -- TechHealth, a healthcare technology and=
=20
information management company focused on developing care management softwa=
re=20
for the workers' compensation industry, said it has secured a multimillion=
=20
dollar investment in its second round of funding from lead investor Kiernan=
=20
Ventures and undisclosed investors. Peter D. Kiernan, a former senior partn=
er=20
at Goldman Sachs who personally invested in TechHealth's first round of=20
funding, has been named chairman of TechHealth, joining the board as its=20
fourth member. TechHealth also announced it has elected Thomas R. Sweet, on=
e=20
of the company's founders and its president, as its new CEO. Mr. Sweet=20
replaces co-founder Steve MacDonald, who has left the company to pursue oth=
er=20
business opportunities. Mr. Sweet said the latest funding will be used to=
=20
continue development of its software and grow the company's workforce. He=
=20
said TechHealth currently has 32 employees, but plans to double its staff=
=20
over the next two to three months! . However, he stressed that the growth=
=20
will depend largely on the completion of customer contracts now in the=20
pipeline. TechHealth has a burn rate in the neighborhood of $200,000 per=20
month and expects this latest funding to last through the first quarter of=
=20
2002 when it plans to be cashflow positive. TechHealth raised $5 million in=
=20
its first round of funding. Miraquest, a Boise, Idaho-based venture capital=
=20
firm, has invested in the company, along with undisclosed individuals from=
=20
Fleet Securities. Miraquest did not participate in this round.=20
=09=09http://www.techhealth.com
=09=09
=09=09
=09=09eRealty.com Receives $15 Million in Second Round=20
=09=09mail? top
=09=09
=09=09HOUSTON (VENTUREWIRE) -- The online residential real estate brokerage=
 firm=20
eRealty.com said it received $15 million in second round funding led by=20
Milestone Equities, with previous investors TL Ventures and Polaris Venture=
=20
Partners participating. The company said it plans to use the new funds for=
=20
sales and marketing, as well as for further national expansion. As a result=
=20
of this financing, Gavin Gray of Milestone Equities has been granted the=20
seventh seat on the company's board of directors that includes John S. Boyd=
=20
and Bob Fabbio of TL Ventures and Tom Herring of Polaris Venture Partners.=
=20
eRealty.com is planning to raise a larger round of strategic funding from=
=20
partners in the financial services, media, and real estate service sectors =
by=20
the close of this year. In February 2000, eRealty.com received $10 million=
=20
from TL Ventures and Polaris Venture Partners.
=09=09http://www.erealty.com
=09=09
=09=09
=09=09ERisk Raises $10 Million Second Round
=09=09mail? top
=09=09
=09=09NEW YORK (VENTUREWIRE) -- ERisk, which provides software and consulti=
ng for=20
enterprise risk management, said it raised $10 million in the second round =
of=20
financing from new investor JPMorgan Partners, which led the round with=20
participation from all past investors including a UBS subsidiary aventic AG=
,=20
Internet Finance Partners, Katalyst Venture Partners I, and Risk Management=
=20
Solutions. The money will be used for marketing and sales and for product=
=20
development. ERisk was founded in 1999 and has raised over $30 million to=
=20
date.=20
=09=09http://www.erisk.com
=09=09
=09=09
=09=09eVu Technology Secures $1M of a $3M Series B
=09=09mail? top
=09=09
=09=09ALISO VIEJO, Calif. (VENTUREWIRE) -- eVu Technologies, which provides=
=20
software for online advertisers, said it has secured $1 million of a $3=20
million Series B round. Series A investor Robert Morrow, who holds board=20
seats on National Airlines, leads the round. The company expects to garner =
a=20
post-money valuation of $9.8 million, compared with $2.4 million in its pri=
or=20
round. The round is expected to close in 60 days and may include strategic=
=20
investors as well as venture capital firms. Mr. Morrow will gain a seat on=
=20
the board, while an additional seat remains open and will be filled by a=20
representative from this round. A total of seven directors will sit on the=
=20
board. The company said funds from this round will be used for product=20
launch, expected in July, and for staff expansion. eVu currently employs=20
eight and anticipates growing to a staff of 20 by the end of the year. The=
=20
company said it expects Series B financing to carry it into the fourth=20
quarter of 2002 and plans to be cash-flow positive in the second qua! rter =
of=20
2002.
=09=09http://www.evu.com
=09=09
=09=09
=09=09PureCarbon Lands Series B Funding
=09=09mail? top
=09=09
=09=09SCOTTS VALLEY, Calif. (VENTUREWIRE) -- PureCarbon, which provides onl=
ine=20
recruiting tools, said it has raised an undisclosed amount of Series B=20
funding led by Industry Ventures and internet.com Ventures with participati=
on=20
from TSX Ventures and previous investor, Band of Angels Fund. The company=
=20
said it plans to use the new funds for sales and marketing, product=20
development, and potential technology acquisitions. PureCarbon expects that=
=20
this round will take the company to profitability by early 2002. As a resul=
t=20
of the financing, Kirk Holland and Phillip Won from internet.com Ventures=
=20
join the five- member board of directors that includes Chris Meyer and Ian=
=20
Sobieski of Band of Angels Fund. The company closed $3 million in Series A=
=20
financing in May 2000 from Band of Angels and merchant bank Petkevich and=
=20
Partners.=20
=09=09http://www.purecarbon.com
=09=09
=09=09
=09=09SI Automation Raises $3.5 Million Second Round
=09=09mail? top
=09=09
=09=09MONTPELLIER, France (VENTUREWIRE) -- SI Automation, which specializes=
 in=20
communication interfaces and single-wire factory automation technologies fo=
r=20
the global semiconductor industry, announced it has raised EUR 4 million=20
($3.5 million ) in its second round of funding from new investors, Societe=
=20
Generale Asset Management, a subsidiary of the French banking group Societe=
=20
Generale, and Credit Lyonnais Venture Capital. SI Automation's first round=
=20
investors, Banexi Venture Partners and Soridec, also participated in this=
=20
round. The company said it will use the funding to develop its software and=
=20
to support its worldwide sales network.=20
=09=09http://www.siautomation.com
=09=09
=09=09
=09=09Visual Friendly Raises $1.9 Million
=09=09mail? top
=09=09
=09=09PARIS (VENTUREWIRE) -- Visual Friendly, which develops software for=
=20
customizing Web pages, said it secured EUR 2.2 million ($1.9 million) from=
=20
Credit Lyonnais Asset Management CLAM Private Equity. The company said the =
it=20
plans to launch its services with partner sites this summer. Visual Friendl=
y=20
is also backed by the incubator Kangaroo Village. Jerome Adam founded the=
=20
company in August 2000.
=09=09http://www.kangaroovillage.com
=09=09http://www.visualfriendly.com
=09=09
=09=09
=09=09bad news
=09=09?
=09=09UltraDNS Lays Off 65% of its Staff; CEO Resigns
=09=09mail? top
=09=09
=09=09SAN MATEO, Calif. (VENTUREWIRE) -- UltraDNS, which provides technolog=
y for=20
scalable directory services for Internet and communications system=20
infrastructure, said it has reduced its staff by 65%, leaving the company=
=20
with 24 employees. The company also said that Steve Kalman, its CEO and=20
co-founder, has resigned, and Ben Petro, who was formerly chief marketing=
=20
officer, has assumed the CEO post. Also, UltraDNS lost its vice president o=
f=20
operations and chief technical officer in the shake-up. Mr. Petro said the=
=20
company decided to focus more on its direct sales mode, conserve cash, and=
=20
speed up to profitability. Petro added that UltraDNS still has about $21=20
million remaining in funding out of the $25 million it raised earlier this=
=20
year for its Series B round. The company expects to be cashflow positive in=
=20
November, and still plans to expand its sales operations in the U.S. and=20
overseas. UltraDNS, which raised $8 million in its Series A round of fundin=
g,=20
is backed by The Reuters Group,  VantagePoint Venture Partne! rs, New=20
Enterprise Associates, and Comdisco. Mr. Petro said all employees who were=
=20
laid off received a severance package and outplacement services.=20
=09=09http://www.ultradns.com
=09=09
=09=09
=09=09PinPoint Networks Lays Off a Third of Staff=20
=09=09mail? top
=09=09
=09=09DURHAM, N.C. (VENTUREWIRE) -- PinPoint Networks, which delivers a bro=
adband=20
wireless content platform for service providers, said it laid off 15=20
people-or one-third of its staff-across various departments. PinPoint had n=
o=20
comment on severance. PinPoint said the layoffs were a result of the compan=
y=20
shifting its services to focus on global service providers as opposed to=20
Internet companies. The company said it would continue to provide service t=
o=20
existing Internet clients but would stop servicing those unable to pay.=20
PinPoint signed a deal to provide Verizon Wireless with search and director=
y=20
engine enabling technology at the end of March. PinPoint has received over =
$5=20
million in financing from Noro-Moseley Partners, Wakefield Group, and the=
=20
TriState Investment Group.=20
=09=09http://www.pinpoint.com
=09=09
=09=09
=09=09Luxlook.com Goes Out of Business=20
=09=09mail? top
=09=09
=09=09NEW YORK (VENTUREWIRE) -- Luxlook.com, an online retailer of fashion=
=20
accessories, said the company would be shutting down effective May 31, 2001=
.=20
Luxlook.com said it will shut down its U.S. and U.K. sites at the end of th=
is=20
month and its site serving Europe on May 18. In a written statement the=20
company cited slower than expected sales growth and a difficult capital=20
market as the causes of its closing. The company could not be reached for=
=20
comment. Luxlook.com had received over $30.8 million from Arca Merchant &=
=20
Arca Impresa Gestioni, Bulgari Group, Ciaoholding, Holding di Partecipazion=
i=20
(HdP), and IFIL.=20
=09=09http://www.luxlook.com
=09=09
=09=09
=09=09new products
=09=09?
=09=09KorTeam Changes Name to Breveon
=09=09mail? top
=09=09
=09=09SAN JOSE, Calif. (VENTUREWIRE) -- KorTeam International, which provid=
es=20
speech recognition software, said it changed its name to Breveon and moved=
=20
from Sunnyvale, Calif. into new headquarters in San Jose, Calif. The name=
=20
change reflects the shift in the company's business model from developing=
=20
medical-based voice recognition applications for third-party products to=20
creating a new voice dictation product that includes a speech engine, a=20
linguist rules engine, and specialized medical vocabularies. Called Breveon=
=20
AuratorPC, the product enables doctors to dictate notes and have them=20
transcribed for report creation or electronic deployment. Founded in 1988,=
=20
the company was originally funded by the National Institutes of Health. It =
is=20
now backed by BioAsia, Maton Ventures, and inVestar. The company is expecti=
ng=20
to raise a mezzanine round this summer, but said it has not chosen an=20
underwriter for an IPO.=20
=09=09http://www.breveon.com
=09=09
=09=09
=09=09m&a
=09=09?
=09=09Exus Networks Acquires Broadband Access Firm Negen=20
=09=09mail? top
=09=09
=09=09NEW YORK (VENTUREWIRE) -- Exus Networks, a publicly traded provider o=
f=20
end-to-end telecommunications services, said it has signed an agreement to=
=20
acquire the assests of Negen Access of Marlborough, Mass., including its=20
patents, trademarks, research and development property, and its family of=
=20
products. Negen develops and markets high-performance intelligent broadband=
=20
access equipment. Exus will pay two million shares of its restricted shares=
=20
of common stock worth approximately $1.22 million. Negen founder, chairman,=
=20
and CEO Evan J. Bontemps will become president of a newly formed subsidiary=
=20
of Exus. Negen's research and development facilities will remain active. In=
=20
March 2000, Negen raised a total of $2.61 million in its Series A from=20
Corning Technology Partners and individuals. In September 2000, it raised a=
=20
$3 million bridge loan. Mr. Bontemps said the company had been looking for=
=20
funding or a buyer since August 2000. In the process, it went from 30 to fo=
ur=20
employees. Exus approached the company! about three weeks ago and they bega=
n=20
acquisition discussions. Mr. Bontemps said the company will soon begin=20
looking to increase its staff again.=20
=09=09http://www.exus.net
=09=09http://www.negen.com
=09=09
=09=09
=09=09BondVision Acquires BondClick
=09=09mail? top
=09=09
=09=09LONDON (VENTUREWIRE) -- BondVision, a Web-based trading platform for =
fixed=20
income securities, and BondClick, a multi-dealer online trading platform=20
designed for institutional investors, said they will merge. BondVision pare=
nt=20
company MTS is exchanging shares of BondClick at a 1-to-1 ratio that gives=
=20
MTS 30% of the new company with the remaining 70% to be divided among its=
=20
twenty investing institutions. BondVision is the trading platform of MTS,=
=20
which manages Telematico, an electronic trading vehicle of European fixed=
=20
income securities. BondVision said that it has not made a decision about=20
whether of not any of its 65 employees will be laid off. However, it is=20
expected that BondClick's 25 contracted employees will be laid off once the=
ir=20
contacts expire, with the remaining ten full-time employees remaining with=
=20
the combined company. BondVision is backed by Banc of America Securities,=
=20
Banca di Roma, Banca IMI, Banco Bilbao Vizcaya Argentaria (BBVA), CDC Ixis=
=20
Capital Markets, Commerzbank, Credit Ag! ricole Indosuez, Fortis Bank, HSBC=
,=20
HypoVereinsbank, ING Bank, JP Morgan, Unicredito Banca Mobiliare (UBM), and=
=20
UBS Warburg. BondClick is backed by ABN Amro, Barclays Capital, BNP Paribas=
,=20
Caboto Holding, Deutsche Bank, Dresdner Kleinwort Wasserstein, and JP Morga=
n.=20
=09=09http://www.bondclick.com
=09=09http://www.bondvision.com
=09=09
=09=09
=09=09Manhattan Scientifics Acquires Teneo Computing
=09=09mail? top
=09=09
=09=09NEW YORK (VENTUREWIRE) -- Manhattan Scientifics, a publicly traded=20
investment, incubator, and development company, said it has acquired Teneo=
=20
Computing, which develops touch-enabled applications for medical simulation=
=20
and oil and gas exploration, and will merge it with its incubated company,=
=20
Novint Technologies, which develops touch-related software under the Novint=
=20
name. Terms of the deal were not disclosed. In addition to Manhattan=20
Scientifics, Novint had partnered with venture capital backed SensAble=20
Technologies, a provider of touch enabled applications based in Woburn, Mas=
s.=20
John Ranta and Walt Aviles left SensAble Technologies in March of 1999 to=
=20
start Teneo Computing.=20
=09=09http://www.mhtx.com
=09=09http://www.novint.com
=09=09http://www.teneo.com
=09=09
=09=09
=09=09new directors
=09=09?
=09=09Broadband Tech Firm IPWireless Appoints Chairman
=09=09mail? top
=09=09
=09=09SAN BRUNO, Calif. (VENTUREWIRE) -- IPWireless, a provider of broadban=
d=20
wireless technology, announced the appointment of co-founder Peter A.=20
Howley-who is currently president and CEO-to chairman of the company's boar=
d=20
of directors. IPWireless' s six-member board member also includes Frederick=
=20
W.W. Bolander of Gabriel Venture Partners; private investor B.J. Cassin; K.=
B.=20
Chandrasekhar, founder, Exodus Communications and Jamcracker; J. Taylor=20
Crandall of Oak Hill Capital Management; and Neal Dempsey of Bay Partners. =
To=20
date, IPWireless has raised more than $120 million in venture capital.=20
Investors include Bay Partners, Doll Capital Management, Dougery Ventures,=
=20
Gabriel Venture Partners, GIC Special Investments, J.F. Shea venture Capita=
l,=20
Northwood Capital Partners, and Oak Hill Capital Management.
=09=09http://www.ipwireless.com
=09=09
=09=09
=09=09Former McKinsey Exec Joins Board at Graviton=20
=09=09mail? top
=09=09
=09=09LA JOLLA, Calif.  (VENTUREWIRE) -- Graviton, a developer of wireless =
sensor=20
information networks, said it elected Kenichi Ohmae, the managing director =
of=20
Ohmae & Associates and the co-founder of McKinsey & Company's strategic=20
management practice, to the company's board of directors. Mr. Ohmae is taki=
ng=20
the ninth seat on the board. Graviton has received an undisclosed amount of=
=20
funding form Early Bird Ventures, Kleiner Perkins Caufield & Byers, Mitsui=
=20
USA, Omron, Qualcomm, Siemens, SI Ventures, and Sun Microsystems, as well a=
s=20
the CIA's venture fund In-Q-Tel.=20
=09=09http://www.graviton.com
=09=09
=09=09
=09=09Mobile Technology Firm Aeritas Appoints Chairman=20
=09=09mail? top
=09=09
=09=09IRVING, Texas (VENTUREWIRE) -- Aeritas, a developer of mobile commerc=
e=20
technology, announced the appointment of William C. Jackson as chairman of=
=20
the board. Prior to joining Aeritas, Mr. Jackson served as executive vice=
=20
president at Bell & Howell, and as chairman and CEO of its publications=20
systems companies. He currently serves on the boards of Globe Investments a=
nd=20
vLicense, and was a founding board member of 1-800-Flowers. To date, Aerita=
s=20
has received $2.5 million in seed funding from Austin Ventures and individu=
al=20
investors. The company is currently seeking $8 million in Series A financin=
g.=20
=09=09http://www.aeritas.com
=09=09
=09=09
=09=09new people
=09=09?
=09=09CEO of Healthcare Software Maker eMed Technologies Resigns
=09=09mail? top
=09=09
=09=09LEXINGTON, Mass. (VENTUREWIRE) -- eMed Technologies, which provides m=
edical=20
image management and distribution software and services, said CEO Caren Mas=
on=20
will be leaving the company, citing a long-distance commute from Wisconsin=
=20
and responsibilities to family. The company has retained executive search=
=20
firm TMP Worldwide to recruit a replacement for Ms. Mason, who will remain=
=20
with the company in the meantime. She joined the company in January 2000,=
=20
replacing Scott Sheldon. The company has raised a total of $48 million in=
=20
funding from Bed Rock Capital Partners, Bessemer Venture Partners, Boston=
=20
Millennia Partners, CSFB Private Equity, Delphi Venture, Pacific Venture=20
Group, Shroder Ventures International Life Sciences Fund, and Sea Flower=20
Ventures.
=09=09http://www.emed.com
=09=09
=09=09
=09=09Porivo Technologies Appoints Ex-NBC Internet Exec as CEO
=09=09mail? top
=09=09
=09=09RESEARCH TRIANGLE PARK, N.C. (VENTUREWIRE) -- Porivo Technologies, wh=
ich=20
develops Web performance testing applications based on peer-to-peer=20
distributed computing technologies, said it has appointed Gordon Kass as=20
president and CEO. Mr. Kass replaces co-founder Will Holms, who now serves =
as=20
vice president of strategic development. Mr. Porivo had served as an=20
executive vice president and chief technology officer at NBC Internet. Pori=
vo=20
is backed by $2.2 million from The Aurora Funds and  individual investors.
=09=09http://www.porivo.com
=09=09
=09=09
=09=09Infraworks Names New Chief Executive Officer
=09=09mail? top
=09=09
=09=09AUSTIN, Texas (VENTUREWIRE) -- Infraworks, which specializes in digit=
al=20
property protection, said it appointed Joyce Durst as CEO. She replaces=20
founder George Friedman, who remains with the company as CTO. Prior to=20
joining Infraworks, Ms. Durst served as general manager and vice president =
of=20
the DataOne database products division of BMC Software. Infraworks engaged=
=20
the services of national search firm Christian & Timbers in hiring Ms. Durs=
t.=20
She also joins as the seventh member of the board of directors, which=20
includes Quinn Morgan and James Caccavo of Moore Capital Management. To dat=
e,=20
Infraworks has raised $13.2 million in one round of financing from Moore=20
Capital Management and unnamed individuals. The company is currently seekin=
g=20
a Series B round between $15 million and $25 million, to close in early=20
autumn.
=09=09http://www.infraworks.com
=09=09
=09=09
=09=09InterCure Names New President and CEO=20
=09=09mail? top
=09=09
=09=09PRINCETON, N.J. (VENTUREWIRE) -- InterCure, a medical technology comp=
any,=20
said it replaced co-founder Erez Gavish as the company's president and CEO=
=20
and appointed Paul T. Sheils to succeed him. Mr. Gavish will continue to wo=
rk=20
at the company as executive vice president. Mr. Sheils, who becomes the=20
seventh board member, will oversee both Israel-based InterCure and its=20
U.S.-based subsidiary located in Princeton, N.J. He will direct the company=
's=20
product, Resperate, to the global market. Prior to joining InterCure, he wa=
s=20
CEO of Medscape, where he helped the company through its IPO in September=
=20
1999. Mr. Sheils was introduced to the company through executive search fir=
m=20
Heidrick & Struggles. William Ward worked on the placement. InterCure=20
develops medical devices that treat hypertension, congestive heart failure,=
=20
asthma, and chronic obstructive pulmonary diseases. InterCure is backed by=
=20
Palladin Capital Group and True North Partners. Daniel Plotkin is the=20
company's chairman, and co-founder Benjamin! Gavish is the chief scientific=
=20
officer.=20
=09=09http://www.intercure.com
=09=09
=09=09
=09=09Biotech Firm Metabolex Appoints President & COO
=09=09mail? top
=09=09
=09=09HAYWARD, Calif. (VENTUREWIRE) -- Metabolex, a biopharmaceutical compa=
ny=20
engaged in the discovery and development of therapeutics for diabetes, said=
=20
that it appointed Harold Van Wart as president and COO. Formerly the=20
company's senior vice president of research and development, he replaces=20
Thomas A. Glaze as president and is the first person to hold the position o=
f=20
COO. Mr. Glaze will retain his role as the company's CEO. Mr. Van Wart join=
ed=20
Metabolex in October 2000 from Roche Bioscience, where he was vice presiden=
t=20
and head of arthritis and fibrosis research and a member of the Roche Globa=
l=20
Research Portfolio Committee. To date, Metabolex has raised approximately $=
70=20
million in venture capital. Investors include Charter Ventures, John Hancoc=
k,=20
Lombard, Odier, Abbot Labs, Pfizer, Pictet, Wanger Asset Management, and Ba=
y=20
City Capital.
=09=09http://www.metabolex.com
=09=09
=09=09
=09=09vc fund news
=09=09?
=09=09Suez Takes 18% Stake in Europatweb for $116 Million=20
=09=09mail? top
=09=09
=09=09PARIS (VENTUREWIRE) -- Europatweb, an Internet investment fund of whi=
ch Group=20
Arnault owns 82%, said Suez Lyonnaise des Eaux, a provider of infrastructur=
e=20
services, including electricity, waste management, and communications,=20
invested EUR 132 million ($116 million) in the company for an 18% equity=20
share. The company said the financing would be used as working capital and =
to=20
fund more Internet companies. Europatweb has 44 Internet companies in its=
=20
portfolio and cash assets of $170 million. Europatweb has a post-money=20
valuation of $644 million based on Suez's 18% stake.=20
=09=09http://www.europatweb.com
=09=09
=09=09
=09=09Sun Capital Partners Closes $200 Million Buyout Fund
=09=09mail? top
=09=09
=09=09BOCA RATON, Fla. (VENTUREWIRE) -- Sun Capital Partners, a merchant ba=
nking=20
firm focused on leveraged buyouts and venture capital investments, announce=
d=20
it has formed Sun Capital Partners II, a $200 million leveraged buyout fund=
.=20
The company said its initial investors significantly increased their=20
investment in this fund. Sun Capital focuses on a number of industries,=20
including paper and packaging, filmed entertainment, computer and workstati=
on=20
peripherals, wireless communications, and building products. Founded in 199=
5,=20
the company has acquired 21 businesses with combined sales in excess of $1.=
3=20
billion. Its portfolio includes Jtech Communications, a developer of hospit=
al=20
paging systems; broandband Internet firm Eureka; and Genicom, which=20
manufacturers laser printers.=20
=09=09http://www.suncappart.com
=09=09
=09=09
=09=09vc personnel
=09=09?
=09=09Goldman Sachs Exec Joins iFormation as Managing Director
=09=09mail? top
=09=09
=09=09NEW YORK (VENTUREWIRE) -- iFormation Group, which invests in and oper=
ates new=20
technology businesses, announced it has appointed Peter Wheeler as a managi=
ng=20
director of the company. Mr. Wheeler has spent 15 years with Goldman Sachs =
in=20
New York, Hong Kong, and most recently London, where he held a senior clien=
t=20
relationship role focusing on the company's global clients. He will be base=
d=20
initially in iFormation's London office. iFormation, launched in June of la=
st=20
year, is a three-way venture between The Boston Consulting Group, General=
=20
Atlantic Partners, and Goldman Sachs.          =20
=09=09http://www.iformationgroup.com
=09=09
=09=09
=09=09vw corrections
=09=09?
=09=09EYP Mission Critical
=09=09mail? top
=09=09
=09=09NEW YORK (VENTUREWIRE) -- An article in Thursday's VentureWire, regar=
ding an=20
investment by TA Associates in EYP Mission Critical Facilities, contained a=
n=20
incorrect spelling of the name of a TA Associates principal. The TA princip=
al=20
is Roger Kafker.=20
=09=09
=09=09
=09=09company index
=09=09top
=09=09
=09=09Aeritas, BondClick, BondVision, Breveon, E-train, eMed Technologies,=
=20
eRealty.com, ERisk, Escalate, Europ@web, eVU, Exus Networks, FierceWireless=
,=20
Graviton, iFormation Group, Infraworks, InterCure, IPWireless, Kangaroo=20
Village, LifeLink MD, Luxlook.com, Manhattan Scientifics, Metabolex, myCFO,=
=20
Negen Access, NFR Security, Novint Technologies, PDQuick, Pinpoint Networks=
,=20
Porivo Technologies, PureCarbon, Red Herring Communications, Service=20
Resources, SI Automation, Small World Media, Smart Seed Fund, Sporting News=
,=20
Standard Life Investments, Stick Networks, Sun Capital Partners, TechHealth=
,=20
Teneo Computing, Tradeworx, Tradeworx, UltraDNS, Visual Friendly, Vulcan=20
Northwest, WhyRunOut.com
=09=09
=09=09
=09=09When it comes to money, it's evolutionary.
=09=09
=09=09Financial Services Outlook will host up to 50 innovative,
=09=09technology-driven companies, who are altering the landscape
=09=09from global markets to reinsurance, trade credit to risk
=09=09management.
=09=09
=09=09Financial Services Outlook
=09=09July 31
=09=09The Marriott World Trade Center
=09=09
=09=09Check out the latest industry updates and hear the
=09=09best of the best give their views on market opportunities.
=09=09Register before June 19 and SAVE=20
$100:http://www.financialservicesoutlook.com/
=09=09
=09=09
=09=09
=09=09investor index
=09=09top
=09=09
=09=09Aventic Partners, Band of Angels, Banexi Ventures, Capital Investors,=
 Credit=20
Lyonnais Securities , Credit Lyonnaise, Frontenac Co., Gryphon Capital=20
Partners, Industry Ventures, Internet Finance Partners, internet.com Ventur=
e=20
Fund, J.P. Morgan Capital, Katalyst Venture Partners, Kiernan Ventures,=20
McDonnell & Associates, Milestone Venture Partners, Polaris Venture Partner=
s,=20
Risk Management Solutions, Societe Generale Asset Management, Soridec, Thie=
l=20
Capital, TL Ventures, TSX Ventures, Venture Builders, Viridian Capital=20
Partners
=09=09
=09=09
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