VentureWire, Monday, June 4, 2001 ,
 =09=09?=09
?=09VentureWire
=09Monday, June 04, 2001=09=09?
?=09CONTENTS | COMPANIES | INVESTORS | ADVERTISE | TELL A FRIEND=09VentureW=
ire Index
=09=09'VentureWire
=09=09today: 684.6 ? +0.07%=09?
? =09=09
=09=09
=09=09top stories
=09=09
=09=09 =01=07 Matrix Partners Raises $1 Billion Fund
=09=09 =01=07 Atom Shockwave Says 'Game Over' to Some Staff
=09=09 =01=07 Sevin Rosen Teaming Up With N. Va. Firm=20
=09=09=01=07 Imaging Tech Firm NuCORE Raises $20 Million Series C
=09=09=20
=09=09
=09=09TODAY'S FEATURES=20
=09=09Week in Review: VC Fallout Continues, Bertelsmann Stays in Tune
=09=09By Daniel Boylan
=09=09With venture capital returns plummeting, LaunchCenter39 (LC39) Ventur=
e Group=20
has decided its investors will be better off with their money back rather=
=20
than risking losing it all. more>>
=09=09UPCOMING EVENTS
=09=09June 26-27: San Francisco
=09=09Enterprise Outlook 2001
=09=09Investment remains strong in enterprise software with over 250 deals =
so far=20
this year! Listen to Dick Shaffer's interview with ON24 discussing analysis=
=20
of this industry and previewing the upcoming Enterprise Outlook. Only 3 wee=
ks=20
until Enterprise Outlook, so register today!=20
=09=09
=09=09
=09=09Outlook for the Venture Capital Market
=09=09* 20th Univ. of Michigan Growth Capital Symposium, June 19-20
=09=09* Meet with LPs and GPs of successful funds. Interact with
=09=09execs from life sciences, MEMS, Telematics & IT firms
=09=09* Outlooks include Kleiner Perkins Caufield & Byers,
=09=09Draper Fisher Jurvetson, State of Michigan Pension Fund.
=09=09* Connect with the Center for Venture Capital and Private
=09=09Equity Finance at the University of Michigan --- serving
=09=09the institutional VC community for 20 years.
=09=09* Call 734-936-3528 or view the Center's website for=20
details:http://www.umich.edu/~cvpumbs
=09=09
=09=09
=09=09
=09=09
=09=09
=09=09
=09=09new money
=09=09
=09=09 =01=07 Clearswift, Formerly Net-Tel, Raises $9.6 Million A Round
=09=09 =01=07 SPS Commerce Raises $10 Million in Round Four
=09=09 =01=07 Transportation App. Firm Kizoom Gets $2.1 Million Round One
=09=09 =01=07 Power Technology Firm Cheng Power Raises $3 Million
=09=09 =01=07 Records Management Software Firm iWitness Has $11M Round Two
=09=09 =01=07 Micro-Electro Mechanical System Firm PHS MEMS Raises $26.3 M
=09=09 =01=07 Johnson & Johnson Backs Nanoparticles, Polymer Firm Alnis=20
=09=09=01=07 Wireless LAN Firm Service Factory Closes Second Round=20
=09=09=01=07 Biotech Firm Vasca Raises $19.6M in Series F Financing
=09=09 =01=07 CML-ATC Technologies Picks Up $2M in Round Two
=09=09 =01=07 German Venture Firm bmp Increases Stake in indecom By 25%
=09=09 =01=07 IBT Technologies Raises $4.8M Series C, Appoints President
=09=09 =01=07 Cadant Announces Funding, New CEO, and 15% Layoffs
=09=09
=09=09
=09=09bad news
=09=09
=09=09 =01=07 B2B Commerce Platform for Media Ads, eMadison.com, Closes
=09=09
=09=09
=09=09new deals
=09=09
=09=09 =01=07 Venture Frogs Sells drugs.com Domain Name=20
=09=09
=09=09
=09=09new products
=09=09
=09=09 =01=07 Professional Services Automation Firm PrimeActive Launches
=09=09 =01=07 With Cenetec Funds, Brokerage Renamed Innovation Capital  =20
=09=09=01=07 Enterprise Software Firm Bodha Launches First Product
=09=09
=09=09
=09=09m&a
=09=09
=09=09 =01=07 Barclays Private Equity Backs MBO of Recruitment Solutions
=09=09
=09=09
=09=09new people
=09=09
=09=09 =01=07 Optical Access Firm Native Networks Appoints CEO
=09=09 =01=07 Media Tech Firm EnterTec Group Names Dror Chevion President
=09=09 =01=07 Comprehensive Software Systems Names New President & CEO
=09=09
=09=09
=09=09vc fund news
=09=09
=09=09 =01=07 New Zealand Gov't. Launches $40.9M Early-Stage Fund=20
=09=09=01=07 Silicon Valley Bank Forms New Seed Capital Practice
=09=09
=09=09
=09=09vw corrections
=09=09
=09=09 =01=07 Accumedia
=09=09
=09=09 TOP STORIES... NEW MONEY... BAD NEWS... NEW DEALS... NEW PRODUCTS...=
 M&A...=20
NEW PEOPLE... VC FUND NEWS... VW CORRECTIONS
=09=09
=09=09
=09=09top
=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/register.asp
=09=09
=09=09
=09=09
=09=09 top stories=20
=09=09?
=09=09Matrix Partners Raises $1 Billion Fund
=09=09 mail? top
=09=09
=09=09 WALTHAM, Mass. (VENTUREWIRE) -- Matrix Partners, a Waltham, Mass.-ba=
sed=20
early-stage venture capital firm, has closed on a fund of $1 billion,=20
VentureWire has learned. The new fund is the firm's seventh. The firm=20
confirmed that it has raised the new fund but declined to make further=20
comment until making a formal announcement, which it plans to do this summe=
r.=20
Matrix closed its last fund in 2000, Matrix Partners VI with $530 million.=
=20
The firm, which has nine partners and a satellite office in Palo Alto,=20
Calif., was founded in 1982. Matrix Partners backs companies in the=20
computing, Internet, networking equipment, semiconductor, software, and=20
storage sectors.  The firm invests between $100,000 and $300,000 in seed=20
deals and invests up to $10 million in early-stage rounds. According to=20
VentureWire data, Matrix is the twelfth venture capital firm to close a fun=
d=20
this year with at least $1 billion. Apax Partners raised a fund of about $4=
=20
billion to target Israeli and European companies, while ten other firms,=20
including Austin Ventures, Charles River Ventures, Greylock, and U.S. Ventu=
re=20
Partners, closed funds closer to the $1 billion mark. Atlas Venture came in=
=20
just short with its $950 million Fund VI in April. In all of last year,=20
eighteen VC firms closed $1 billion funds. Matrix Partners portfolio=20
companies include Appian Communications, a Boxborough, Mass.-based develope=
r=20
of optical networking technologies for communications carriers; Blue Dolphi=
n=20
Group, a Wayland, Mass. e-mail-based subscription agent that recently cut 2=
0%=20
of its staff; Lexra, a San Jose, Calif.-based microprocessor developer; and=
=20
Sunnyvale, Calif.-based RealChip Communications, which provides custom and=
=20
standard chips for communications applications.=20
=09=09http://www.matrixpartners.com
=09=09
=09=09
=09=09Atom Shockwave Says 'Game Over' to Some Staff
=09=09 mail? top
=09=09
=09=09 SAN FRANCISCO (VENTUREWIRE) -- AtomShockwave, an online entertainmen=
t and=20
content distribution company, said it was restructuring the company and has=
=20
terminated some of its staff. The company said an undisclosed number of=20
employees were let go on Friday. The company, which was formed by the=20
December 2000 merger of Atom Films and Shockwave, would not comment on=20
whether employees received severance packages. AtomShockwave said the cuts=
=20
were part of an effort to help the company reach profitability sooner but d=
id=20
not say when profits were expected. The company, which raised $22.9 million=
=20
in March, said it will now focus more on sydication, advertising,=20
sponsorship, and e-content, and less on content creation and development.=
=20
AtomShockwave's backers include Allen & Co., Arts Alliance, Chase Capital=
=20
Partners, Intel Capital, J.P. Morgan Entertainment Partners, Macromedia=20
Ventures, Sequoia Capital, Trans Cosmos USA, Warner Bros. Online, WaterView=
=20
Advisors, and individuals.
=09=09http://www.atomfilms.com
=09=09http://www.shockwave.com
=09=09
=09=09
=09=09Sevin Rosen Teaming Up With N. Va. Firm=20
=09=09mail? top
=09=09
=09=09 PALO ALTO, Calif. (VENTUREWIRE) -- To get a heads-up on new deals, e=
arly=20
stage venture firm Sevin Rosen Funds is setting up a formal relationship wi=
th=20
a venture firm in Northern Virginia. Steve Dow, a general partner at Sevin=
=20
Rosen, declined to name the firm but said the relationship is likely to=20
resemble one his firm recently established with Silicon Valley Seed=20
Investors, a fledgling New York City venture capital firm. According to Mr.=
=20
Dow, Sevin Rosen has been on the lookout for areas that "have the potential=
=20
to be more interesting over time." In the last year, Mr. Dow's firm, which=
=20
has offices in Dallas and Palo Alto, Calif., has opened two new satellite=
=20
offices in Austin, Texas and San Diego. The firm has one partner in the=20
Austin office, while another splits his time between Palo Alto and San Dieg=
o.=20
The deal with the Virginia firm will likely be the end of Sevin Rosen's=20
expansion. "I would be shocked if you see us opening anymore [offices]," sa=
id=20
Mr. Dow. He said the firm, which has ten partners, wants to make sure they=
=20
have the ability to bounce ideas off one another. "Unlike with law firms,=
=20
it's not always clear how you should scale an early stage venture capital=
=20
firm," he said. Founded in January, Silicon Valley Seed Investors, which=20
focuses on early stage high tech companies in the New York metro area, rais=
ed=20
$30 million from three venture firms: Canaan Partners, based in Rowayton,=
=20
Conn., Rho Management, based in New York, and Sevin Rosen. Each firm=20
contributed $10 million to the firm's first fund. As part of the deal, Sevi=
n=20
Rosen Funds gets an early look at Silicon Valley Seed Investors deals. Shou=
ld=20
all three of the investing firms want to take part in the same deal, Mr. Do=
w=20
said they would each receive equal shares of the company. While expanding i=
ts=20
early stage relationships, Mr. Dow said Sevin Rosen is also considering=20
making later stage investments outside its portfolio. He said lower=20
valuations have moved the firm to think about making some later stage deals=
,=20
though no are pending. The firm has made five investments this year, all of=
=20
which were either in existing portfolio companies or new early stage startu=
ps.
=09=09http://www.srfunds.com
=09=09
=09=09
=09=09Imaging Tech Firm NuCORE Raises $20 Million Series C
=09=09 mail? top
=09=09
=09=09 SANTA CLARA, Calif. (VENTUREWIRE) -- NuCORE Technology, which develo=
ps=20
digital imaging chips for still and video cameras, said that it raised $20=
=20
million in its Series C financing from Sigma Partners, Horizon Ventures,=20
JAFCO, J.P. Morgan Partners, and Techfund. This round was co-led by new=20
investors Sigma Partners and JAFCO. NuCORE plans to dedicate the new funds =
to=20
staff expansion, as well as to technology and product development. As a=20
result of this financing, the company has granted seats to Lawrence G. Finc=
h=20
of Sigma Partners and Jack Carsten of Horizon Ventures on its five-member=
=20
board of directors. Also sitting on the board are Chairman Gordon Cambpell =
of=20
Techfarm and Melissa Crane of VantagePoint. Although Joe Raffa, NuCORE's CE=
O,=20
declined to disclose the company's monthly burn rate, he said he expects th=
e=20
new funds to carry the company for "at least twelve months, or until=20
profitability." The company, which maintains offices here and in Japan, has=
 a=20
team of 60 full-time employees and is actively hiring engineers in the fiel=
ds=20
of integrated circuit design, firmware, software, and marketing, as well as=
=20
at all levels of management. Headcount is expected to reach 90 by year's en=
d.=20
In addition NuCORE is seeking strategic partners in the areas of image=20
sensors, compression, display technologies, and microprocessor technology. =
In=20
July 1998, NuCORE raised $3 million in Series A funding led by TechFund, wi=
th=20
J.P. Morgan Capital Partners and NTT Lease Ventures participating. In March=
=20
2000, the company closed an $8.7 million Series B led by VantagePoint=20
Ventures, with Horizon Ventures, J.P. Morgan Capital Partners, and TechFund=
.=20
=09=09http://www.nucoretech.com
=09=09
=09=09
=09=09 new money=20
=09=09?
=09=09Clearswift, Formerly Net-Tel, Raises $9.6 Million A Round
=09=09 mail? top
=09=09
=09=09 HERTFORDSHIRE, England (VENTUREWIRE) -- Clearswift, a provider of e-=
mail and=20
content security services formerly known as Net-Tel, said it launched with =
a=20
Series A GBP 6.75 million ($9.6 million) from investors including U.S.-base=
d=20
investment firm 4C Ventures, the British investor Amadeus Capital, and the=
=20
Italian venture capital fund Pino Ventures. Amadeus led the round, which=20
gives Clearswift a post-money valuation of $15 million, according to=20
Clearswift spokesman, Paul Rutherford. The company will use the funding to=
=20
support the restructuring of Net-Tel into Clearswift and the launch of=20
Clearswift's services in France, Germany, and the U.S. Richard Anton, a=20
director with Amadeus Capital, will take a seat on the company's board of=
=20
directors as a result of the funding. With the help of Amadeus, Clearswift=
=20
has assembled a new management team to head the development of its=20
international operations. Andy De Mari, the founder of the security service=
s=20
firm ISOCOR that was acquired by Critical Path in 1999, will serve as the=
=20
company's chairman, while Don Taylor, former international vice president o=
f=20
Tumbleweed Communications, will assume the post of chief executive. Two of=
=20
the four original founders of Net-Tel, Steven Nokes and John Horton, will=
=20
remain with the company in finance and business development, respectively.=
=20
Mr. Anton said that salaries represented the company's biggest expense and=
=20
that Clearswift expects to raise its Series B round next year. With product=
s=20
already in the market, Clearswift had been generating revenues prior to the=
=20
Series A funding. The company's clients include English retailer Marks &=20
Spencer, Virgin Group, and departments within the British government.=20
Clearstream will be launching offices in Boston, Paris, and a German locati=
on=20
still to be determined. The company intends to roll out a new version of it=
s=20
Mailguard product in July. According to Mr. Anton, Ivan O.Sullivan will hea=
d=20
the Boston office. There were no outside agents involved in the transaction=
.=20
=09=09http://www.clearswift.com
=09=09
=09=09
=09=09SPS Commerce Raises $10 Million in Round Four
=09=09 mail? top
=09=09
=09=09 ST. PAUL, Minn. (VENTUREWIRE) -- SPS Commerce, a supply integration =
service=20
provider, said it has secured $10 million in fourth round financing. Adams=
=20
Street Partners, Axiom Venture Partners, CID Equity Partners, Damac Al Bure=
ka=20
Investments, Granite Private Equity, and St. Paul Venture Capital=20
participated in this round. The financing came from existing investors and=
=20
was led by CID Equity Partners; post-money valuation decreased since the la=
st=20
round. New money will be used for building the company's hosted Internet=20
service infrastructure, expanding strategic partnerships, product=20
development, and technology purchases. Chief strategy officer, Jim Frome,=
=20
said the company expects revenues of between $5 million and $10 million and=
=20
anticipates becoming cash-flow positive by early 2002. Next year the compan=
y=20
will begin to consider a public offering or being acquired. To date, SPS=20
Commerce has raised $43 million.
=09=09http://www.spscommerce.com
=09=09
=09=09
=09=09Transportation App. Firm Kizoom Gets $2.1 Million Round One
=09=09 mail? top
=09=09
=09=09 LONDON (VENTUREWIRE) -- Kizoom, a developer of wireless applications=
 for use=20
in  transportation systems, said that it raised $2.1 million in a first rou=
nd=20
from Dawnay Day Lander. The company plans to dedicate the new funds to=20
product development. Post-money, the company is valued at approximately $5.=
6=20
million. CEO Damian Bown expects that the new funds will carry the company=
=20
through to profitability within the next three months. As a result of this=
=20
financing, Nick Lander of Dawnay Day Lander has been granted a seat on the=
=20
six-member Kizoom board of directors. Kizoom, which was founded in April=20
1999, derives revenues by licensing its platform to mobile portal operators=
=20
and transport companies. Prior to this round the company was backed by=20
individuals.=20
=09=09http://www.kizoom.com
=09=09
=09=09
=09=09Power Technology Firm Cheng Power Raises $3 Million
=09=09 mail? top
=09=09
=09=09 ATLANTA (VENTUREWIRE) -- Mirant, a publicly traded energy company, s=
aid it=20
has invested $3 million in Cheng Power, which provides technology designed =
to=20
improve output, efficiency, and environmental performance of power generati=
ng=20
systems. The $3 million investment, which was part of a $9 million round of=
=20
funding led by previous investor Saw Mill Capital, is Mirant's first since =
it=20
launched its venture capital group in January. Cheng Power said it intends =
to=20
use the funding to develop and commercialize its products. As part of the=
=20
agreement, Bill Harper will join Cheng Power's board of directors. In April=
,=20
Cheng raised $3.5 million from Saw Mill Capital in a Series A round.=20
=09=09http://www.chengpower.com
=09=09http://www.mirant.com
=09=09
=09=09
=09=09Records Management Software Firm iWitness Has $11M Round Two
=09=09 mail? top
=09=09
=09=09 BOULDER, Colo. (VENTUREWIRE) -- iWitness, which provides digital bus=
iness=20
records management software, said it has raised $11 million in a second=20
round. Sequel Venture Partners led the round, with participation from 75 Wa=
ll=20
Street Technology Partners, Geneva Venture Partners, Telesoft Partners, and=
=20
World Ventures. As a result of the round, Tim Conner and Victoria Katsov of=
=20
new investor 75 Wall Street join CEO Mike Donaldson, Telesoft CEO Arjun=20
Gupta, and founder and CTO, Frank Lambert, on the board.  iWitness also=20
expects to add two outside directors from the enterprise software industry.=
=20
With this second round of funding, iWitness now has a total of $15 million =
in=20
investments. In December 1999 the company closed a first round led by=20
Telesoft, with participation from Geneva and World Ventures. The company=20
expects funds from this round will last into 2002, and will be used for=20
research, development, and marketing and sales, as well as for adding to th=
e=20
executive team. iWitness will focus on e-mail, instant messaging, and Web=
=20
transactions records management. CEO Mike Donaldson said the company expect=
s=20
to break even in the middle of next year. The company employs 40 and expect=
s=20
to add 10 to 15 more positions, most in sales and marketing, by the end of=
=20
the year.
=09=09http://www.iwitness.com
=09=09
=09=09
=09=09Micro-Electro Mechanical System Firm PHS MEMS Raises $26.3 M
=09=09 mail? top
=09=09
=09=09 PARIS (VENTUREWIRE) -- PHS MEMS, a French micro-electro mechanical s=
ystems=20
designer, raised EUR 31 million ($26.3 million) in its third round of fundi=
ng=20
from an investment group including AXA Private Equity, IDI Group, Thales CS=
F=20
Ventures, Finov, and Innovafrance. The company said it will use the funding=
=20
to expand its operations in the U.S. and Europe, and to support the=20
development of new products through increased staffing in the research and=
=20
development areas. Vincent Gombaut, from new investor AXA Group Private=20
Equity, will join Maurice Khawam, managing director for ETF Group France, o=
n=20
the company's board of directors. The investment gives ETF Group a 17% stak=
e=20
in the company, and the total investment group over 50% of PHS MEMS. The=20
company is managed by Alberto Martorell, president and CEO, who previously=
=20
served with ETF Group Investments and worked in Sun Microsystems' =20
microelectronic division. There was no placement agent for the funding.=20
=09=09http://www.phsmems.com
=09=09
=09=09
=09=09Johnson & Johnson Backs Nanoparticles, Polymer Firm Alnis=20
=09=09mail? top
=09=09
=09=09 EMERYVILLE, Calif. (VENTUREWIRE) -- Alnis Biosciences, which is deve=
loping=20
nanoparticles and polymer materials for biotechnology applications, said it=
=20
has secured an undisclosed amount of funding from Johnson & Johnson=20
Development Corp. The company said it will use the funding to continue to=
=20
develop its technology, which focuses on oncology and infectious diseases.=
=20
Prior to this investment Alnis was primarily funded by a three-year grant=
=20
from the Defense Advanced Research Project Agency (DARPA). Alnis said it ha=
d=20
also received funding from Dow Chemical and Global Venture Capital. The=20
company was founded in 1997 by David Soane, who is also founder of Nano-Tex=
=20
and Aclara Biosciences.=20
=09=09http://www.alnis.com
=09=09
=09=09
=09=09Wireless LAN Firm Service Factory Closes Second Round=20
=09=09mail? top
=09=09
=09=09 STOCKHOLM, Sweden (VENTUREWIRE) -- Service Factory, which provides I=
nternet=20
access through services a wireless local area network (LAN), said it closed=
=20
its second round with an undisclosed amount of funding with BrainHeart=20
Capital. Service Factory said BrainHeart now holds a 10% equity stake in th=
e=20
company. Magnus Melander, an investment manager at BrainHeart, will take th=
e=20
sixth seat on Service Factory's board of directors. Service Factory said it=
=20
will use the funding to expand its services into Germany, France, Spain, an=
d=20
Italy, and it further said it already has test sites in some of these=20
countries. The company also said it plans on entering the U.S. market. The=
=20
funding is expected to last until the end of the year. Service Factory was=
=20
founded in December 1999 and reached profitability at the end of 2000. The=
=20
company had $10.5 million in revenue last year, with $1.1 million as profit=
.=20
Outside investors hold a 40% equity stake in the firm. Service Factory also=
=20
said it plans on raising a new round later this year or early next year wit=
h=20
a U.S. venture capital firm. The company received $1.4 million in first-rou=
nd=20
funding from Telia Business Innovation and Telia.=20
=09=09http://www.servicefactory.se
=09=09
=09=09
=09=09Biotech Firm Vasca Raises $19.6M in Series F Financing
=09=09 mail? top
=09=09
=09=09 TEWKSBURY, Mass. (VENTUREWIRE) -- Vasca, a developer of an access de=
vice for=20
hemodialysis, said it has raised $19.6 million in a Series F round from Atl=
as=20
Venture, Bedrock Capital, Crossroads, MVM Limited, Pacific Ventures, Weiss=
=20
Peck and Greer, The Sprout Group, and Tailwind Capital Partners. The compan=
y=20
plans to dedicate the new funds to further research and development, as wel=
l=20
as for sales. MVM Limited, a new investor, led this financing. The Crossroa=
ds=20
Group and Tailwind Capital Partners are also new to the round. As a result =
of=20
this investment, Dr. Stephen Reeders, who is chief executive officer of MVM=
=20
and a nephrologist, has been granted a seat on the 11-member Vasca board of=
=20
directors. The board includes Philippe Chambon and Jeani Delagardelle of Th=
e=20
Sprout Group and Paul Brown of Bedrock Capital. While a company spokesperso=
n=20
declined to reveal a post-money valuation on the round, the spokesperson=20
indicated that the recent funds should carry the company through to=20
profitability, which is anticipated by the fourth quarter of 2002. Includin=
g=20
this round, Vasca has raised approximately $62 million in venture capital t=
o=20
date.=20
=09=09http://www.vasca.com
=09=09
=09=09
=09=09CML-ATC Technologies Picks Up $2M in Round Two
=09=09 mail? top
=09=09
=09=09 HULL, Quebec (VENTUREWIRE) -- CML-ATC Technologies, which designed a=
nd=20
manufactured voice communications systems composed of hardware and embedded=
=20
software for aviation control systems, has closed CAD 3 million ($2 million=
)=20
in second-round funding from Innovatech of Montreal and The Solidarity Fund=
,=20
said CEO Franz Plangger. New investor Solidarity Fund contributed $1 millio=
n=20
in this round, while the balance came from existing investor Innovatech.=20
Quebec-based venture capital firm SDEO, which participated in the first=20
round, did not reinvest. Post-money, Mr. Plangger said the company has a=20
valuation of $10.4 million, an increase from $3.9 million. Edith Gaudet,=20
investment advisor at Solidarity Fund, joins the board of directors, which =
is=20
full at six seats. CML-ATC, which has a burn rate of $195,000 per month, wi=
ll=20
use the new money for research and development, and marketing. The company=
=20
will add approximately 10 manufacturing employees to the current staff of 4=
0.=20
The communications systems manufacturer is also expecting to add a vice=20
president of marketing and sales and a vice president of research and desig=
n=20
to its management team. Mr. Plangger said CML-ATC will likely raise another=
=20
round late this year or early next year. The company expects $6.5 million i=
n=20
revenues this year. The company raised $780,000 in a first round from=20
Innovatech and SDEO.=20
=09=09http://www.cmlatc.com
=09=09
=09=09
=09=09German Venture Firm bmp Increases Stake in indecom By 25%
=09=09 mail? top
=09=09
=09=09 BERLIN (VENTUREWIRE) -- bmp, a venture capital firm focusing on e-bu=
siness=20
and life sciences investments, said it increased its equity stake in the=20
application service provider, independent computing (indecom), from 20% to=
=20
45%. bmp did not provide financial details of the investment, but did say=
=20
that no other institutions participated in the round. bmp said the financin=
g=20
would be used for indecom's expansion plans.=20
=09=09http://www.bmp.com
=09=09http://www.indecom.de
=09=09
=09=09
=09=09IBT Technologies Raises $4.8M Series C, Appoints President
=09=09 mail? top
=09=09
=09=09 AUSTIN, Texas (VENTUREWIRE) -- IBT Technologies, an application serv=
ice=20
provider focused on the corporate training market, said that it received $4=
.8=20
million in Series C financing from Counsel Corp. and Techxas Ventures. The=
=20
company plans to use the new funding for product development and sales. Thi=
s=20
round was co-led by Counsel Corp. and Techxas Ventures, both return=20
investors. Although a company spokesperson would not cite a burn rate, she=
=20
said the funds should take the company to profitability within twelve month=
s.=20
In addition, IBT announced the appointment of Cynthia Sheridan as president=
=20
of the company. Prior to joining IBT, she served as president and CEO of=20
WebIQ, a provider of collaborative decision-support tools. The company's CE=
O=20
and chairman, William H. Cunningham, who is the former chancellor of the=20
University of Texas System, has headed the company since December 2000. In=
=20
March 2000, IBT Technologies raised $6.4 million in its Series B financing=
=20
led by Counsel, with participation from Q Investments, Techxas Ventures,=20
Thomas Weisel Partners, and unnamed individuals.=20
=09=09http://www.ibt-technologies.com
=09=09
=09=09
=09=09Cadant Announces Funding, New CEO, and 15% Layoffs
=09=09 mail? top
=09=09
=09=09 LISLE, Ill. (VENTUREWIRE) -- Cadant, a provider of high-speed cable=
=20
networking products, said it has closed a new round of funding from World=
=20
Associates and other investors. The amount was not disclosed. Charlie Walke=
r,=20
founder of Access Technology Partners, joins the company as CEO. The compan=
y=20
also said it reduced its staff by 15%. New investor World Associates joined=
=20
Cadant's existing investors in this round, which will be used for product=
=20
development and launch in the fall. Staff reductions were made in marketing=
,=20
sales, operations, and finance. The company said its engineering team has=
=20
remained intact. Prior to this round Cadant raised $23 million in funding.=
=20
Investors included Access Technology Partners, Chase Capital, and Venrock=
=20
Associates.=20
=09=09http://www.cadant.com
=09=09
=09=09
=09=09 bad news=20
=09=09?
=09=09B2B Commerce Platform for Media Ads, eMadison.com, Closes
=09=09 mail? top
=09=09
=09=09 FREMONT, Calif. (VENTUREWIRE) -- eMadison, a business-to-business el=
ectronic=20
commerce company that provides a platform for the buying and selling of=20
traditional media advertising, has shut down. A source close to the company=
=20
confirmed that eMadison ceased all operations about two weeks ago and laid=
=20
off its entire staff. The source said the company is currently looking to=
=20
sell its assets. eMadison, which had been in operation for barely a year,=
=20
launched in June 2000 with $12.9 million in funding from Sequoia Capital an=
d=20
Sandler Capital.=20
=09=09http://www.emadison.com
=09=09
=09=09
=09=09 new deals=20
=09=09?
=09=09Venture Frogs Sells drugs.com Domain Name=20
=09=09mail? top
=09=09
=09=09 SAN FRANCISCO (VENTUREWIRE) -- Venture Frogs, a technology incubator=
 and=20
venture firm, said it sold the domain name of drugs.com, an online health=
=20
portal, to an unidentified buyer in an all-cash deal of undisclosed value.=
=20
Venture Frogs said the rest of drugs.com, an incubated portfolio company,=
=20
would cease to exist by the end of the year. Venture Frogs also said it was=
=20
concentrating its efforts in its other portfolio company Zappos.com, an=20
e-retailer of shoes.To date, Zappos.com has raised $3.5 million in three=20
rounds from Venture Frogs and individuals.
=09=09http://www.drugs.com
=09=09http://www.vfrogs.com
=09=09
=09=09
=09=09 new products=20
=09=09?
=09=09Professional Services Automation Firm PrimeActive Launches
=09=09 mail? top
=09=09
=09=09 COLUMBUS, Ohio (VENTUREWIRE) -- PrimeActive Technologies, which offe=
rs=20
browser-based professional services automation (PSA) tools for mid-market=
=20
professional services organizations, said it has launched. The company's=20
technology is provided as either licensed software for an organization's=20
intranet, or as a hosted application. The company was founded by CEO Brian=
=20
Delphia, the president of Delphia Consulting, and Benjamin Drake, its=20
president, who was formerly with the consulting division of Arthur Andersen=
.=20
PrimeActive lists among its clients Delphia Consulting, R.Dorsey&Co., and t=
he=20
professional services division of Best Software of Reston, Va. PrimeActive =
is=20
privately funded by individual investors and hopes to close its first round=
=20
of funding between $1.8 million and $3 million within six months.=20
=09=09http://www.primeactivepsa.com
=09=09
=09=09
=09=09With Cenetec Funds, Brokerage Renamed Innovation Capital  =20
=09=09mail? top
=09=09
=09=09 BOCA RATON, Fla. (VENTUREWIRE) -- Cenetec, a technology accelerator,=
=20
announced the formation of brokerage firm Innovation Capital, to be=20
headquartered at Cenetec's headquarters in Boca Raton, Fla. Innovation=20
Capital was formerly known as the brokerage CB Capital and was located in=
=20
West Palm Beach, Fla. The company changed its name in April to reflect=20
Centec's investment in the firm and the company's technology focus.=20
Innovation Capital will provide placement services to private companies=20
seeking to raise $1 million to $10 million. Innovation Capital said it is=
=20
currently raising funding for four companies in Florida. The firm also said=
=20
it is currently focusing on providing its services in the southeastern U.S.=
=20
Michael Yasi, formerly of CB Capital, is the president of Innovation Capita=
l=20
and Rob Picard is the other principal. Cenetec, which owns one-third of=20
Innovation Capital, has raised $11 million for equity investments in=20
startups.=20
=09=09http://www.innovation-capital.com
=09=09
=09=09
=09=09Enterprise Software Firm Bodha Launches First Product
=09=09 mail? top
=09=09
=09=09 MOUNTAIN VIEW, Calif. (VENTUREWIRE) -- Bodha, an enterprise software=
 and=20
services company, announced its first product, Bodha Rapid IntEgration=20
Framework, an integration system that enables companies to connect with the=
=20
Web interfaces of their partners. The company is raising $10 million in its=
=20
first institutional round, which it expects to close by fall. Funds from th=
at=20
round will be used for product development and business development. CEO=20
Vishal Sikka founded Bodha in 1999. Prior to Bodha, Mr. Sikka had founded=
=20
iBrain, an integration software company servicing the pharmaceutical indust=
ry=20
that was eventually acquired by PlanetRx. He had also held positions at Xer=
ox=20
Research Labs. Bodha employs 18 and has raised $1 million from individual=
=20
investors.
=09=09http://www.bodha.com
=09=09
=09=09
=09=09 m&a=20
=09=09?
=09=09Barclays Private Equity Backs MBO of Recruitment Solutions
=09=09 mail? top
=09=09
=09=09 LONDON (VENTUREWIRE) -- Barclays Private Equity has invested GBP 9 m=
illion=20
($12.8 million) as part of a $25.6 million funding package to back the=20
management buyout of Recruitment Solutions Group (RSG). RSG operates Medics=
=20
and Social Work Solutions, subsidiaries that provide temporary professional=
=20
staffing to public- and private-sector clients. The management team is led =
by=20
managing director, Jeff Downey; finance director, Mac Robertson; and=20
marketing director, Mike Adams. Mark Aldridge, formerly a director of Hayes=
=20
plc, joins the team as a non-executive chairman. The company is considering=
=20
growth through acquisition, Mr. Downey said in a statement. Barclays Privat=
e=20
Equity holds a substantial majority stake. Barclays Acquisition Finance=20
provided senior debt and working capital. DHD Corporate Finance advised the=
=20
purchase side of the transaction, while Capital Strategies Corporate Financ=
e=20
advised the vendor.
=09=09http://www.recruitmentsolutions.co.uk
=09=09
=09=09
=09=09 new people=20
=09=09?
=09=09Optical Access Firm Native Networks Appoints CEO
=09=09 mail? top
=09=09
=09=09 LONDON (VENTUREWIRE) -- Native Networks, a developer of technology f=
or=20
optical access networks, said that it has appointed Stephen Harbour, former=
ly=20
marketing director for Cisco Photonics, as its chief executive officer. Mr.=
=20
Harbour replaces co-founder and former CEO Gilad Goren, who will continue=
=20
with Native Networks as president. Prior to joining Native Networks, Mr.=20
Harbour was marketing director for Cisco Photonics, a division of Cisco tha=
t=20
was formed after the acquisition of Pirelli's WDM systems business in=20
February 2000. In September 2000, Native Networks completed a private=20
placement of $18.2 million from investors including Anschutz Investment,=20
Jerusalem Venture Partners, and Soros Private Equity Partners.=20
=09=09http://www.nativenetworks.com
=09=09
=09=09
=09=09Media Tech Firm EnterTec Group Names Dror Chevion President
=09=09 mail? top
=09=09
=09=09 HERZELIYA, Israel (VENTUREWIRE) -- EnterTec Group, a provider of=20
entertainment and media technologies, said it has named Dror Chevion as the=
=20
company's president. Mr. Chevion is the first person to hold this position.=
=20
Prior to his appointment the company was headed by founding chairman and CE=
O,=20
David Chissick. Most recently Mr. Chevion served as vice president of=20
business development at Ness Technologies. In addition he has served as=20
director of government information technology and budget director for the=
=20
Israeli government. To date, EnterTec has raised $1.5 million in first-roun=
d=20
financing from Israeli Theaters and unnamed individuals. The company is=20
currently seeking $2 million in additional financing, which it hopes to rai=
se=20
in the next few months.
=09=09http://www.enterteclab.com
=09=09
=09=09
=09=09Comprehensive Software Systems Names New President & CEO
=09=09 mail? top
=09=09
=09=09 GOLDEN, Colo. (VENTUREWIRE) -- Comprehensive Software Systems, a dev=
eloper=20
of financial services software, announced the appointment of Chris Poelma a=
s=20
president and CEO. Prior to joining CSS, Mr. Poelma served as executive vic=
e=20
president, chief technology officer and board director for ASP provider =20
USinternetworking, which he co-founded. Mr. Poelma replaces acting-presiden=
t=20
William B. McClure, who will continue with the company as senior vice=20
president of client services. He also joins as the eleventh member of the=
=20
company's board, which includes David Glatstein and Don A. Buchholz of=20
Southwest Securities Group; Thomas A. James of Raymond James Financial;=20
Robert H. Beriault of Fiserv; Warren A. Stephens and Mark C. Doramus of=20
Stephens; Robert T. Clutterbuck and David J. Schafer of McDonald Investment=
s;=20
James Ditmore of Ameritrade Holding; and Bob Gartland of Morgan Stanley. CS=
S=20
has backing from ADP Brokerage Services Group, Ameritrade Holding, Fiserv=
=20
Securities, McDonald Investments, Morgan Stanley Dean Witter, Raymond James=
=20
Financial, Southwest Securities Group, and Stephens.=20
=09=09http://www.csssoftware.com
=09=09
=09=09
=09=09 vc fund news=20
=09=09?
=09=09New Zealand Gov't. Launches $40.9M Early-Stage Fund=20
=09=09mail? top
=09=09
=09=09 WELLINGTON, New Zealand (VENTUREWIRE) -- New Zealand's Ministry of R=
esearch,=20
Science & Technology  announced the launch of the New Zealand Venture=20
Investment Fund (VIF), a NZD 100 million ($40.9 million) fund. It will inve=
st=20
in funds that back seed and early-stage technology companies in New Zealand=
.=20
VIF said the initial fund will be split into ten funds over a two- to=20
three-year period. Each fund will range in size from $12.3 million to $20.4=
=20
million and VIF will invest up to one third of this amount. VIF said each=
=20
fund would invest in between 15 to 20 companies over a seven- to ten-year=
=20
period. VIF will invest in funds that will invest in New Zealand companies=
=20
and no more than 10% of a fund may be invested in any one company. VIF also=
=20
said it would give co-investors a chance to buy out VIF's investment after=
=20
the third year of the fund. VIF also said it expects to finalize the=20
selection of fund managers from the private sector by the end of the year.=
=20
=09=09http://www.morst.govt.nz
=09=09
=09=09
=09=09Silicon Valley Bank Forms New Seed Capital Practice
=09=09 mail? top
=09=09
=09=09 SANTA CLARA, Calif. (VENTUREWIRE) -- Silicon Valley Bank, a wholly-o=
wned=20
subsidiary of Silicon Valley Bancshares, announced it has established a see=
d=20
capital practice. The practice will provide funding to seed-stage companies=
=20
as well as a variety of services to both startups and early-stage investors=
.=20
John P. Flinn, who will serve as a director of the practice, said the group=
=20
will co-invest with other leading early-stage investment firms. It will als=
o=20
invest directly in companies and in seed funds. Mr. Flinn said a typical=20
direct investment will range from $100,000 to $5 million, depending on the=
=20
nature of the deal. Mr. Flinn said the seed group, just like Silicon Valley=
=20
Bank's venture capital group, will use funds from the company's $100 millio=
n=20
fund, which closed last year. In addition, the group plans to create=20
networking opportunities between early-stage investors and startups, to=20
provide assistance with syndications as well as market intelligence and=20
research, and to offer credit facilities to angel investors and general=20
partners. Silicon Valley Bank vice chairman Harry W. Kellogg and profession=
al=20
services division manager Steve Empey will oversee the practice.=20
=09=09http://www.svbank.com
=09=09
=09=09
=09=09 vw corrections=20
=09=09?
=09=09Accumedia
=09=09 mail? top
=09=09
=09=09 NEW YORK (VENTUREWIRE) -- An item in last Tuesday's VentureWire abou=
t=20
Accumedia contained an incorrect description of the company's services.=20
According to CEO Ed Williams, Accumedia can cut a large media firm's cost o=
f=20
running a Web site with 3 million page views a month from $1.75 million to=
=20
$625,000 over the course of three years, not annually.=20
=09=09
=09=09
=09=09company index
=09=09top
=09=09
=09=09Alnis Biosciences, AtomShockwave, bmp, Bodha, Cadant, Cheng Power Sys=
tems,=20
Clearswift, CML-ATC Technologies, drugs.com, eMadison, EnterTec Group, IBT=
=20
Technologies, Indecom, Innovation Capital, iWitness, Kizoom, Matrix Partner=
s,=20
Ministry of Research, Science & Technology, Mirant, Native Networks, NuCore=
=20
Technology, PHS MEMS, PrimeActive Technologies, Recruitment Solutions Group=
,=20
Service Factory, Sevin Rosen Funds, shockwave.com, Silicon Valley Bank, SPS=
=20
Commerce, Vasca, Venture Frogs=20
=09=09
=09=09
=09=09Time is money and time can be saved through
=09=09effortless, streamlined Web-based enterprise
=09=09services.
=09=09
=09=09As IBM preps to launch Web-based software
=09=09allowing for smoother enterprise-application-
=09=09integration, it will face competition from the
=09=09likes of Hewlett-Packard, Microsoft, Oracle and Sun.
=09=09Which will attract the greatest number of
=09=09developers and customers in the Web-services
=09=09arena?
=09=09
=09=09Hear what Steven Mills, Senior VP & Group
=09=09Executive of IBM Software, has to say about
=09=09IBM's latest at Enterprise Outlook, June 26 & 27.
=09=09
=09=09Register today:http://www.enterpriseoutlook.com/register.asp
=09=09
=09=09
=09=09
=09=09investor index
=09=09top
=09=09
=09=094C Ventures, Adams Street Partners, Amadeus Capital Partners, AXA Pri=
vate=20
Equity, Axiom Venture Partners, bmp, BrainHeart Capital, CID Equity Partner=
s,=20
Damac Al Baraka Investment Co., Dawnay Day Lander, Finov, Granite Ventures,=
=20
IDI Group, InnovaFrance, Innovatech Grand Montr,al, Johnson & Johnson=20
Development, Pino Ventures, Solidarity Fund QFL, St. Paul Venture Capital,=
=20
Thales CSF Ventures, World Associates
=09=09
=09=09
=09=09your account
=09=09
=09=09click on the following links to:
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=09=09=01=07 Thoughts, suggestions, commentary
=09=09=01=07 This newsletter was mailed to you at:  jdasovic@ENRON.COM
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wire.com
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=09=09This copy of VentureWire and the information within it may not be rep=
roduced,=20
saved, or otherwise copied into a database without the prior written consen=
t=20
of Technologic Partners.
=09=09
=09=09VentureWire is a service mark of Technologic Partners
=09=09,2001 Technologic Partners
=09=09=09?
jdasovic@enron.com