VentureWire, Tuesday, June 5, 2001 ,
 =09=09?=09
?=09VentureWire
=09Tuesday, June 05, 2001=09=09?
?=09CONTENTS | COMPANIES | INVESTORS | ADVERTISE | TELL A FRIEND=09VentureW=
ire Index
=09=09'VentureWire
=09=09today: 665.1 ? -2.55%=09?
? =09=09
=09=09
=09=09top stories
=09=09
=09=09 =01=07 William Blair Capital Partners Gets $403M for Fund VII
=09=09 =01=07 Vitesse Acquires Versatile Optical Networks for 10M Shares
=09=09 =01=07 Guggenheim to Launch For-Profit Art Site with VC Backing
=09=09 =01=07 Warburg Pincus Takes The Cobalt Group Private
=09=09=20
=09=09
=09=09TODAY'S FEATURES=20
=09=09Patricof & Co.'s Early Stage Team Stays The Course
=09=09By Amanda Briggs
=09=09Michael Duran, a partner at venture firm Patricof & Co., has spent th=
e last=20
couple of months looking at Series C deals, an unusual move because Mr. Dur=
an=20
was hired last February to focus on early stage deals in the=20
telecommunications equipment and component sectors. more>>
=09=09UPCOMING EVENTS
=09=09July 31: New York City
=09=09Financial Services Outlook
=09=09There are about 1,000 e-finance startups operational right now, offer=
ing=20
services such as cash management, 401(K) brokering, and online banking.=20
However, the e-finance landscape is still largely undefined. Financial=20
Services Outlook will help define the future.  Register before June 19 and=
=20
SAVE $100!=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 Corporate Backed Integres Eyes First VC Round
=09=09 =01=07 Optical Firm Calix Out of Hiding With $158 Million
=09=09 =01=07 Avaki Announces $6M Series A, New Name, New CEO
=09=09 =01=07 Content Management Developer Cytura Gets $11M Round One
=09=09 =01=07 Grass Valley Grabs $36 Million In First Outside Round
=09=09 =01=07 Electronics Design Tool Firm Atrenta Gets $6.7M Series A
=09=09 =01=07 Flat Panel Co. ClairVoyante Labs Gets $4 M in Series A Funds
=09=09 =01=07 Financial Tech Firm Mantas Closes First Round =20
=09=09=01=07 Lucent Takes Equity in Traffic Info Firm MetroCommute.com
=09=09 =01=07 Delphi Display Systems Gets $3 M Series A from Eaglestone=20
=09=09=01=07 Fabless Semiconductor Firm Banderacom Gets $35M Round Two
=09=09 =01=07 Optical Device Maker Optium Raises $35.5 Million Round Two
=09=09 =01=07 OSS Software Maker AP Engines Closes $30 Million Round Two
=09=09 =01=07 Software Maker Harmonic Closes Series B at $15.2M
=09=09 =01=07 Wireless Provider Bluefish Gets $1.8 in Second Round Funds
=09=09 =01=07 Information Software Firm Casmir Raises $1.6M Second Round
=09=09 =01=07 NxtPhase Raises $25 Million in Round Three
=09=09 =01=07 SafeRent Collects $13.4 Million in Round Three
=09=09 =01=07 HydroCision Gets $2M from Oxford Bioscience, Closes Series E
=09=09 =01=07 PC Management Tech Firm Connected Raises $30M Series F
=09=09 =01=07 Qpass Clears $15 Million in Series F=20
=09=09=01=07 Web-Based Planning Software Adaytum Gets $7.4 M Series F
=09=09 =01=07 Naviant, Online Marketing Technology Firm, Gets $15 Million
=09=09
=09=09
=09=09bad news
=09=09
=09=09 =01=07 Report: MetaTV Co-Founder, CEO is Arrested=20
=09=09=01=07 AtomShockwave President Steps Down, Firm Closes Offices
=09=09 =01=07 Site Monitoring Firm webHancer Cuts 10% of Staff
=09=09 =01=07 Bitlocker.com to End Web Database Infrastructure Service
=09=09
=09=09
=09=09new products
=09=09
=09=09 =01=07 Telco Soma Networks to Launch with $70 M Raised to Date
=09=09 =01=07 Hardware Manufacturing Software Firm Bom.com Launches
=09=09 =01=07 ForwardAction Launches to Help Sacramento Area Startups
=09=09 =01=07 Biotech Firm Mycometrix Changes Name to Fluidigm
=09=09 =01=07 Software Infastructure Firm Gazoo Changes Name to Talaris
=09=09 =01=07 GDX Changes Name of Six Affiliates=20
=09=09
=09=09
=09=09m&a
=09=09
=09=09 =01=07 Schroder Ventures Acquires Market Place Media For $28M Cash
=09=09 =01=07 Progress Software Acquires Allegrix=20
=09=09=01=07 Mobile App Firm Everypath Buys Sitraka's Mobility Division
=09=09
=09=09
=09=09new directors
=09=09
=09=09 =01=07 NETdelivery Appoints CDP Sofinov Exec. as New Director
=09=09 =01=07 Wall Street Global Appoints CML Executive to Board
=09=09
=09=09
=09=09new people
=09=09
=09=09 =01=07 Iris Labs CEO Joins Metera Networks as CEO
=09=09 =01=07 MobileStar Appoints WorldCom Head as President & CEO
=09=09 =01=07 World Wide Packets Adds Architel Systems Co-founder as Pres.
=09=09
=09=09
=09=09vc fund news
=09=09
=09=09 =01=07 Leader Capital's Next Joint Venture: Solvos Asia
=09=09
=09=09
=09=09vw corrections
=09=09
=09=09 =01=07 Bodha
=09=09 =01=07 Silicon Alley Seed Investors
=09=09
=09=09 TOP STORIES... NEW MONEY... BAD NEWS... NEW PRODUCTS... M&A... NEW=
=20
DIRECTORS... NEW PEOPLE... VC FUND NEWS... VW CORRECTIONS
=09=09
=09=09
=09=09top
=09=09
=09=09
=09=09Everyone's talking about collaboration-from collaborative
=09=09e-commerce to collaborative manufacturing. Everyone's also
=09=09trying to don the collaboration mantle as they vie for
=09=09attention from customers and investors.
=09=09
=09=09Enterprise Outlook will cut through the hype. Learn about
=09=09fundamental technologies and issues that must be ironed out
=09=09before businesses can work together. See which applications
=09=09truly merit being called "collaborative." Discover how the
=09=09supply chain takes on new power when companies can talk
=09=09machine-to-machine, application-to-application, and
=09=09person-to-person.
=09=09
=09=09Register and reserve your place=20
today:http://www.enterpriseoutlook.com/register.asp
=09=09
=09=09
=09=09
=09=09 top stories=20
=09=09?
=09=09William Blair Capital Partners Gets $403M for Fund VII
=09=09 mail? top
=09=09
=09=09 CHICAGO (VENTUREWIRE) -- William Blair Capital Partners, which makes=
=20
venture-capital and later-stage investments, including management buyouts a=
nd=20
recapitalizations, announced it has closed $402.86 million for WBCP VII, it=
s=20
seventh fund. Managing Director David Chandler said it took the firm nine=
=20
months to raise the fund, which held its initial closing at the end of last=
=20
year. WBCP, which raised $270 million in its previous fund, will continue t=
o=20
invest in business and communications technology, healthcare, and business=
=20
and consumer services companies, said Mr. Chandler. He added that the compa=
ny=20
will pursue co-investment opportunities with other venture capital firms.=
=20
Under the terms of the fund, he said the partners will receive 2% managemen=
t=20
fees. Mr. Chandler said that WBCP VII has invested $10 million each in two=
=20
companies so far: Clear Communications, a provider of network management=20
software for optical networks, and medical-device company NuVasive. The=20
company intends to invest between $7 million and $30 million in 20 to 30=20
companies during the life of the fund.  Mr. Chandler commented that overall=
,=20
deal-flow has slowed tremendously because "many people are not happy with=
=20
valuations." He said WBCP is evaluating many deals it passed on months ago=
=20
that are returning at a much lower valuations. WBCP has raised over $1=20
billion of committed capital in seven private equity funds and has invested=
=20
in over 140 companies.
=09=09http://www.wbcp.net
=09=09
=09=09
=09=09Vitesse Acquires Versatile Optical Networks for 10M Shares
=09=09 mail? top
=09=09
=09=09 SAN JOSE, Calif. (VENTUREWIRE) -- Versatile Optical Networks, which =
designs=20
and manufactures optical and opto-electronic modules for data and=20
communications networks, said it has entered into an agreement to be acquir=
ed=20
by Vitesse Semiconductor for 10 million shares of Vitesse common stock.=20
Vitesse said the deal is expected to be completed by the end of September a=
nd=20
its value will be calculated based on the price of Vitesse's stock at the=
=20
close of the transaction. On Monday, Vitesse was trading at approximately $=
24=20
a share. Vitesse said the two parties already had a working relationship wh=
en=20
discussions began four weeks ago. Versatile will be integrated into Vitesse=
,=20
and Versatile's co-founders Amit Jain and Roger Hajjar will continue with t=
he=20
combined company. No changes are expected in Versatile's 72 person staff,=
=20
which will continue to operate from its San Jose, Calif. office. Founded in=
=20
April 2000, Versatile had received $11 million from Sequoia Capital and=20
Telesoft Partners.=20
=09=09http://www.versatileoptical.com
=09=09http://www.vitesse.com
=09=09
=09=09
=09=09Guggenheim to Launch For-Profit Art Site with VC Backing
=09=09 mail? top
=09=09
=09=09 NEW YORK (VENTUREWIRE) -- The Solomon R. Guggenheim Foundation, whic=
h=20
operates an international network of museums, announced the formation of=20
Guggenheim.com, a for-profit Web site dedicated to the visual and performin=
g=20
arts. The site, which is backed by GE Equity, Pequot Private Equity, and=20
Softbank Venture Capital, is set to launch this fall. According to presiden=
t=20
and chief operating officer Judith Cox, Guggenheim.com will be a for-profit=
=20
entity, completely separate in management and operations from the Guggenhei=
m=20
Foundation. The company will be a collaboration of the Solomon R. Guggenhei=
m=20
Foundation along with participating museums, including The State Hermitage=
=20
Museum in St. Petersburg, Russia; The Albertina in Vienna, Austria; The=20
Kunsthistorisches Museum in Vienna; and the Zentrum fur Kunst und=20
Medientechnologie/Center for Art and Media in Karlsruhe, Germany. The=20
company, which was founded in May 2000, plans to generate revenues from=20
channels including advertising and sponsorship, content subscription,=20
syndication, and e-commerce. Ms. Cox joined the Solomon R. Guggenheim=20
Foundation as general counsel in 1991, and served as its deputy director=20
prior to joining Guggenheim.com. Before joining the Guggenheim Foundation,=
=20
she worked as a lawyer with Bankers Trust. Thomas Krens, who is also direct=
or=20
of the Solomon R. Guggenheim Foundation, will serve as chairman and interim=
=20
CEO of Guggenheim.com. He previously served as planning consultant to the=
=20
Brooklyn Museum. Hani Rashid, a co-founder of architectural and interactive=
=20
digital design firm Asymptote, will serve as the company's chief creative=
=20
officer and chief technology officer. Guggenheim.com, which has raised an=
=20
undisclosed amount of private equity to date, is looking to close a Series =
B=20
round of financing within the next twelve months.
=09=09http://www.guggenheim.com
=09=09
=09=09
=09=09Warburg Pincus Takes The Cobalt Group Private
=09=09 mail? top
=09=09
=09=09 NEW YORK  (VENTUREWIRE) -- In one of the first public-to-private con=
versions=20
for an Internet company, publicly traded firm The Cobalt Group said it woul=
d=20
become a private company with buyout assistance from Warburg Pincus, one of=
=20
its original venture investors. The Seattle-based company provides Web site=
s=20
and services to online auto dealers and went public in August 1999. The dea=
l=20
is structured as a merger with a shell affiliate of Warburg Pincus, which m=
ay=20
put as much as $35 million into the deal, according to managing director Gr=
eg=20
Back. Shareholders will receive $3.50 in cash for each share of common stoc=
k=20
they own. Shares held by Warburg Pincus, about 46% of the company, will not=
=20
be converted in the merger, but some ten million shares representing half t=
he=20
company are outstanding. The deal has been in the works for several weeks a=
nd=20
was an "unsolicited bid" by Warburg Pincus, said John W.P. Holt, The Cobalt=
=20
Group's president and CEO. Mr. Holt owns 3% of the company's shares and wil=
l=20
remain as its executive. After a special committee of independent directors=
=20
reviewed and recommended the offer, The Cobalt Group's board of directors=
=20
voted unanimously to accept the deal. The transaction is still subject to=
=20
shareholders' approval and SEC review, and will not be completed until=20
September. Some aspects of the deal have not been finalized. Mr. Holt said =
he=20
could not comment on whether Chicago-based First Analysis, The Cobalt Group=
's=20
original venture backer and a continued shareholder in the company, would=
=20
sell off its holdings or retain an equity stake. First Analysis, which hold=
s=20
a board seat and voted in favor of the deal, could not be reached for=20
comment. Mr. Holt said The Cobalt Group's employees were likely to remain=
=20
shareholders but those terms too have yet to be determined. Mr. Back said=
=20
that until the transaction is closed, he would not comment on why Warburg=
=20
Pincus initiated the deal or how The Cobalt Group might benefit from being =
a=20
private company. Recently, several venture firms, including Charter Growth=
=20
Capital and Patricof & Co. have expressed interest in public-to-private=20
conversions of tech companies, noting that good deals are available for=20
companies that have sound business models but either went public too soon o=
r=20
are in sectors out of favor with the market. But until now no venture firm=
=20
has executed such a deal for an Internet company. The Cobalt Group is not=
=20
profitable and does not expect to have positive cash-flow from revenues unt=
il=20
late this year or early next. The company has seven business units and 630=
=20
employees in five offices around the country. Mr. Holt declined to comment =
on=20
whether the company would return to the public market in the future or be=
=20
acquired. He did say his job "feels a lot more secure today than it did a=
=20
week ago," and said the company's business plan will remain unchanged.
=09=09http://www.cobaltgroup.com
=09=09
=09=09
=09=09 new money=20
=09=09?
=09=09Corporate Backed Integres Eyes First VC Round
=09=09 mail? top
=09=09
=09=09 RANCHO CORDOVA, Calif. (VENTUREWIRE) -- Integres Global Logistics, a=
=20
Web-based freight service provider, formally announced itself last week wit=
h=20
$30 million in corporate financing but the company is already eyeing an=20
additional $10 million to $20 million of venture capital to take it to=20
profitability in 24 months time. Integres was founded in June 2000 by Unite=
d=20
Airlines, Roadway Express, and Unisys (the three together own more than 50%=
=20
of the company) along with American Airlines, G-Log, and UTi Worldwide. Now=
=20
the company is in discussions with a major West coast venture capital firm=
=20
for an additional investment. Integres' chairman and CEO James Hartigan=20
declined to name the VC firm (he said it has more than $1 billion under=20
management) saying he wants to keep the company's options open for the righ=
t=20
match. Mr. Hartigan, formerly vice president of United Airlines Cargo, said=
=20
the company is seeking venture financing to complement its own logistics=20
experience with the industry's experience with startups and to take advanta=
ge=20
of possible business relationships with companies in a venture firm's=20
portfolio. Integres plans to launch in the third quarter of this year by=20
integrating the services of its founding corporations to provide hard freig=
ht=20
service options to small and medium-sized businesses. In addition to Americ=
an=20
and United Airlines, Integres also expects to announce partnerships with=20
three to five additional international airlines within the next 60 days.=20
Although some of its business will overlap with FedEx and UPS, Integres sai=
d=20
its more direct competition would be with independent small forwarders. The=
=20
company plans to earn revenue as a reseller to airlines and transportation=
=20
companies, through a direct offering, and through franchising options.=20
Although revenue goals were unavailable, the company did say it plans to us=
e=20
$15 to $20 million out of the $30 million committed by the end of 2001 and=
=20
expects to begin 2002 with the remaining $10 million to $15 million. The=20
majority of the financing thus far has been used to set the company up, hir=
e=20
staff, lay down the IT framework, and for sales activities. Integres=20
currently employs 20 people and plans to triple or quadruple its staff by t=
he=20
third quarter.=20
=09=09http://www.integres.com
=09=09
=09=09
=09=09Optical Firm Calix Out of Hiding With $158 Million
=09=09 mail? top
=09=09
=09=09 PETALUMA, Calif.  (VENTUREWIRE) -- Calix, a fiber-optic networking c=
ompany,=20
made its first public fundraising announcement, saying it has raised $158=
=20
million over the course of three rounds, with the latest in March, from Azu=
re=20
Capital,  contract manufacturer Flextronics, Integral Capital Partners,=20
Michael Dell's MSD Capital, Meritech Capital Partners, Pivotal Asset=20
manatement, Redpoint Ventures, and individuals Ajaib Bhardare, co-founder o=
f=20
Cerent, Carl Russo, vice president of the optical networking group at Cisco=
.=20
The company, valued at approximately $535 million, has hired Flextronics to=
=20
manfacture its product, designed to simplify complex communications=20
infrastructure and expand fiber-optic networks. A Calix spokesperson could=
=20
not say when the product would be released. Michael Hatfield,  president an=
d=20
CEO, and Tom Corker vice president, optical products, both previously of=20
Cerent, founded Calix in 1999. The company now employs 275 people.=20
=09=09http://www.calix.com
=09=09
=09=09
=09=09Avaki Announces $6M Series A, New Name, New CEO
=09=09 mail? top
=09=09
=09=09 CAMBRIDGE, Mass. (VENTUREWIRE) -- Avaki, which develops distributed=
=20
computing technology for enterprises, announced it has closed $6 million fr=
om=20
Polaris Venture Partners as part of its Series A round. David Fish, formerl=
y=20
COO of Engage, has also been named CEO, president, and director. The compan=
y=20
also said it has changed its name from Applied MetaComputing to reflect its=
=20
expanded focus on enterprise software for converging distributed, pervasive=
,=20
and peer-oriented computing. Polaris, which lead the round, is the sole=20
investor in this first tranche. A second tranche of the same or slightly=20
larger size is expected to close at the end of the summer. Mr. Fish, the ne=
w=20
CEO, said investors may include other venture capital firms as well as=20
strategic investors. Pre-money, Avaki had a valuation of $11 million. Looki=
ng=20
ahead, Mr. Fish predicted the company would close Series B funding in the=
=20
middle of 2002. However, he said it was too early to predict how much Avaki=
=20
would raise. Avaki anticipates monthly revenues of approximately $100,000 i=
n=20
fall 2001 and $500,000 by the second half of 2002. Concurrent with Series A=
=20
financing, Avaki has appointed three new directors from Polaris to the boar=
d:=20
general partner Mike Hirshland; and venture partners, Bob Metcalfe and Dave=
=20
Barrett. They join Anita Jones, former director of DOD Research and=20
Engineering, Mr. Fish, and founder Andrew Grimshaw on the board. In the top=
=20
posts, Mr. Fish replaces Mr. Grimshaw,  who was CEO for two years. Mr.=20
Grimshaw, who began working on the technology in 1993 at the University of=
=20
Virginia, now serves as chief technology officer. Mr. Fish was introduced t=
o=20
Avaki through Mr. Hirshland of Polaris. New money from the first tranche wi=
ll=20
be used to license intellectual property from the University of Virginia,=
=20
where the distributed computing technology was first developed. The second=
=20
tranche will be used for market development of Avaki's first product, an=20
enterprise-class middleware  platform that was released two months ago to=
=20
charter customers and for licensing technology from software vendors. Avaki=
=20
will approximately double in size by the year's end, adding positions for=
=20
sales and marketing and for engineering to its current staff of 22. The=20
company is also recruiting vice presidents for business development,=20
marketing, and engineering.=20
=09=09http://www.avaki.com
=09=09
=09=09
=09=09Content Management Developer Cytura Gets $11M Round One
=09=09 mail? top
=09=09
=09=09 HEATHROW, Fla. (VENTUREWIRE) -- Cytura, which develops XML-based=20
enterprise-class portal frameworks for content management, said it has clos=
ed=20
$11 million in its first institutional round. Lovett Miller and Noro-Mosele=
y=20
Partners invested in this round. As a result of the round, Allen Moseley of=
=20
Noro-Moseley and Scott Miller of Lovett Miller will join CEO Raj Toleti and=
=20
COO Thad Seymour on the board of directors. Mr. Toleti said the board is=20
expected to add outside directors, growing to seven board members in the ne=
xt=20
three months. New money will be used for expanding into new markets such as=
=20
financial services and manufacturing. Staff size is expected to nearly doub=
le=20
as the company grows from 55 to approximately 90 employees. Cytura expects=
=20
between $10 million and $15 million in revenues over the next twelve months=
,=20
with break-even occuring at the end of 2001. This first round will carry th=
e=20
company to profitability, said Mr. Toleti. The company was founded in 1998.
=09=09http://www.cytura.com
=09=09
=09=09
=09=09Grass Valley Grabs $36 Million In First Outside Round
=09=09 mail? top
=09=09
=09=09 NEVADA CITY, Calif. (VENTUREWIRE) -- Grass Valley Group, a digital m=
edia=20
company, said it raised a $36 million round led by a Lazard private equity=
=20
affiliate, its first outside round since it spun out of Tektronix two and a=
=20
half years ago. Terence J. Gooding, executive chairman of Grass Valley Grou=
p,=20
also participated along with other, undisclosed investors.  According to=20
president and CEO Timothy E. Thorsteinson, the company will use the funding=
=20
to strengthen its research and development and to make strategic=20
acquisitions. "We're looking for companies that will help us grow the=20
business long term, adjacent to the space," said Mr. Thorsteinson. "Softwar=
e=20
applications that would run on our server business." The company, which=20
acquired Vibrint Technologies, a developer of digital newsroom systems, in=
=20
March of 2000, has released eight new products in the last six months=20
including a shared-storage system, Internet encoder, a platform for digital=
=20
new production, routers, and a video production switcher. According to Mr.=
=20
Thorsteinson, "Anybody that wants to improve quality of their video,"=20
including streaming media and Internet companies, can benefit from Grass=20
Valley's products and services. Current clients include Viacom, Lucent=20
Technologies, CBS, DirecTV, Ibeam, and NBC, which recently entered into a $=
25=20
million 3 year agreement with Grass Valley. "While the industry is going=20
through a bit of a slowdown right now, double digit growth is predicted ove=
r=20
the next three to five years," said Paul J. Zepf, Lazard's managing directo=
r,=20
who has taken the seventh seat on Grass Valley's board of directors. "Grass=
=20
Valley has most if not all of the elements we look for in a company. Mr.=20
Thorsteinson said the company, which saw $200 million in revenues last year=
,=20
plans to become profitable next quarter, and, depending on external market=
=20
conditions, could seek an IPO within the next few years.=20
=09=09http://www.grassvalleygroup.com
=09=09
=09=09
=09=09Electronics Design Tool Firm Atrenta Gets $6.7M Series A
=09=09 mail? top
=09=09
=09=09 SAN JOSE, Calif. (VENTUREWIRE) -- Atrenta, a provider of collaborati=
ve=20
software tools for the design of complex electronic products, said that it=
=20
received $6.7 million in the first close of its Series A financing from=20
Venrock Associates, Qinvest, and Qwest. New investor Venrock led the round,=
=20
in which Qinvest and Qwest provided a combined $1.2 million. Atrenta said i=
t=20
plans to use the new funds for marketing and sales, as well as for the=20
expansion of its staff, particularly in engineering. The company, which is=
=20
currently in revenue stage, expects the funds to last until profitability,=
=20
which it expects to reach by the second quarter of 2002. As a result of thi=
s=20
financing, Brian Ascher of Venrock Associates and Michael Hackworth of Cirr=
us=20
Logic have been granted seats on the company's five-member board of=20
directors, which still has two seats vacant. Prior to this round, the compa=
ny=20
was backed by individuals. With an eye to strategic funds, Atrenta is looki=
ng=20
to close this round at $8 million within the next month.
=09=09http://www.atrenta.com
=09=09
=09=09
=09=09Flat Panel Co. ClairVoyante Labs Gets $4 M in Series A Funds
=09=09 mail? top
=09=09
=09=09 SEBASTOPOL, Calif. (VENTUREWIRE) -- ClairVoyante Laboratories, a pro=
vider of=20
sub-pixel rendering technology for flat-panel displays, said it received $4=
=20
million in Series A funding from The Angels' Forum, Lakshmi Technologies,=
=20
North Bay Angels, Pacifica Fund, Selby Venture Partners, and unnamed=20
individuals. Selby Venture Partners, a new investor, led the round. Accordi=
ng=20
to ClairVoyante's CEO and CTO Candice H. Brown Elliott, the company has a=
=20
post-money valuation of $8.5 million and a burn rate that is "ramping up."=
=20
Expected to last the company about 18 months, the funds will be used for=20
research and development as well as for staff expansion. As a result of the=
=20
financing, there were three new appointments to ClairVoyante's five-member=
=20
board of directors: Douglas Barry, a general partner with Selby Venture=20
Partners; Tim Oren, a general partner with Pacifica Fund; and private=20
investor Scott Macomber, who was most recently president of fabless IC=20
company Silicon Image. ClairVoyante, which currently has a team of six, sai=
d=20
it is actively hiring engineers and business development executives. Ms.=20
Elliot anticipates the headcount to reach 19 by the year's end, and 35 by t=
he=20
close of 2002. She told VentureWire that company will be looking for Series=
 B=20
financing of between $10 million and $20 million, to close by the first=20
quarter 2002.=20
=09=09http://www.clairvoyante.com
=09=09
=09=09
=09=09Financial Tech Firm Mantas Closes First Round =20
=09=09mail? top
=09=09
=09=09 FAIRFAX, Va. (VENTUREWIRE) -- Mantas, a software provider for the gl=
obal=20
financial services industry, announced closing its first round with an=20
undisclosed amount of funding from SRA International and Safeguard=20
Scientifics. Mantas is the first spin-off company from SRA Ventures, a join=
t=20
venture formed by SRA International and Safeguard Scientifics to take=20
advantage of SRA's technology. Richard Spires, formerly an executive at SRA=
=20
International, is the president and COO of Mantas.=20
=09=09http://www.sra.com
=09=09
=09=09
=09=09Lucent Takes Equity in Traffic Info Firm MetroCommute.com
=09=09 mail? top
=09=09
=09=09 NEW YORK (VENTUREWIRE) -- MetroCommute.com, a provider of real-time =
traffic=20
information, said that it has granted Lucent Technologies an equity stake i=
n=20
exchange for technology and an undiclosed amount of capital. As part of thi=
s=20
agreement, MetroCommute.com has acquired the worldwide rights to license=20
Lucent's automatic speech recognition and text-to-speech PhoneBrowser=20
technology. MetroCommute.com currently publishes data on its Web site and=
=20
through e-mail updates to wireless devices. The new services, which will=20
enable users to gain access to traffic information via mobile phones, are s=
et=20
to launch within the next 90 days. As a result of this transaction, David=
=20
Stahl, a director of the Lucent New Venture Group, has been granted the six=
th=20
seat on the board. Prior to this investment, MetroCommute.com has been back=
ed=20
by individuals. The company is currently seeking an undisclosed amount of=
=20
first round financing, set to close by September.
=09=09http://www.metrocommute.com
=09=09
=09=09
=09=09Delphi Display Systems Gets $3 M Series A from Eaglestone=20
=09=09mail? top
=09=09
=09=09 COSTA MESA, Calif. (VENTUREWIRE) -- Delphi Display Systems, which de=
signs=20
and manufactures outdoor digital video display systems for the quick servic=
e=20
restaurant industry, said that it received $3 million in Series A financing=
=20
from Eaglestone Investment Partners. The company, which is currently=20
profitable, plans to use the new funds for product development and general=
=20
expansion. As a result of this financing, Eaglestone Investment Partners ha=
s=20
been granted a seat on the company's five-seat board of directors. Presiden=
t=20
and CEO Ken Neeld told VentureWire that he did not anticipate any additiona=
l=20
financing "at least for the next couple of years." Delphi Display's=20
applications include drive-through order confirmation, digital=20
point-of-purchase advertising, electronic billboards, and outdoor informati=
on=20
kiosks. Prior to this round the company was backed by unnamed individuals.=
=20
=09=09http://www.delphidisplaysystems.com
=09=09
=09=09
=09=09Fabless Semiconductor Firm Banderacom Gets $35M Round Two
=09=09 mail? top
=09=09
=09=09 AUSTIN, Texas (VENTUREWIRE) -- Banderacom, which provides fabless In=
finiBand=20
semiconductors, announced it has closed $35 million in a second round of=20
funding from Austin Ventures, Crossroads Systems, Infinity Venture Capital,=
=20
Intel, Jato Tech Ventures, QLogic, and Trinity Venture Capital. New investo=
rs=20
included Infinity Venture Capital, which led the round, QLogic, and Trinity=
=20
Venture Capital. All of Banderacom's existing investors participated in the=
=20
round. Although a company spokesperson did not disclose post-money valuatio=
n,=20
she said it was "significantly larger" than that of the previous round.=20
QLogic will take the sixth seat on Banderacom's board of directors. Funds=
=20
will be used for developing the IBandit silicon products family, which is=
=20
expected to launch in the third quarter. Second-round funding is expected t=
o=20
last at least 18 months, at which time Banderacom expects to raise a third=
=20
round of roughly the same size. Although the company did not share revenue=
=20
projections, a spokesperson said Banderacom will break even in 18 to 24=20
months. Banderacom, which was founded in 1999, employs 70 and expects to ad=
d=20
about 50 more by the end of the year. New positions will be primarily in=20
software engineering.
=09=09http://www.banderacom.com
=09=09
=09=09
=09=09Optical Device Maker Optium Raises $35.5 Million Round Two
=09=09 mail? top
=09=09
=09=09 ORLANDO, Fla. (VENTUREWIRE) -- Optium, which has developed proprieta=
ry=20
optical device and packaging technology to enhance high-speed voice and dat=
a=20
transmissions, announced it has raised $35.5 million in its second round of=
=20
funding from Battery Ventures, Corning Innovation Ventures, Dominion=20
Ventures, Texas Pacific, Kalkhoven, Pettit & Levin Ventures, and Kee Munder=
=20
Venture Partners. Kalkhoven, Pettit & Levin Ventures led the round, which=
=20
brings the total capital raised by Optium to date to $50 million. Texas=20
Pacific, Kee Munder Venture Partners, and Dominion Ventures were new=20
investors in the company. Founded in November 2000, Optium is headed by=20
co-chairman and CEO Paul Suchoski and Eitan Gertel, co-chairman and=20
president. Optium's optical technology was developed at the University of=
=20
Central Florida's School for Optics. The company has 40 employees and is=20
planning an aggressive hiring and marketing campaign.=20
=09=09http://www.optium.com
=09=09
=09=09
=09=09OSS Software Maker AP Engines Closes $30 Million Round Two
=09=09 mail? top
=09=09
=09=09 MAYNARD, Mass. (VENTUREWIRE) -- AP Engines, which provides operation=
al=20
support systems (OSS) integration platforms for telephony and broadband=20
provisioning and usage management, said it has closed $30 million in a seco=
nd=20
round of funding. Atlas Ventures, Bessemer Venture Partners, Commonwealth=
=20
Capital Venture, Enron Broadband Services, Lighthouse Capital Partners,=20
Mentmore Venture Partners, and Thomas Weisel Capital Partners participated =
in=20
the round. New investor Thomas Weisel led the round; Enron, Lighthouse, and=
=20
Mentmore were also new investors in the company. The round also included $5=
=20
million in debt financing from Lighthouse. Company spokesperson Gary P.=20
Strickland declined to disclose post-money valuation, but indicated that it=
=20
was nearly double that of the previous round. As a result of the round,=20
Thomas Weisel takes a seat on AP Engines' board, bringing the total number =
of=20
directors to six. Funds will be used for research, development, and=20
distribution. This year's revenues are expected to exceed $10 million, with=
=20
the company breaking even in the first half of 2002.
=09=09http://www.apengines.com
=09=09
=09=09
=09=09Software Maker Harmonic Closes Series B at $15.2M
=09=09 mail? top
=09=09
=09=09 SAN FRANCISCO, Calif. (VENTUREWIRE) -- Harmonic Communications, whic=
h=20
provides enterprise management software for campaign development across=20
traditional and digital media, announced it has closed $15.2 million in=20
Series B financing. Investors included Dentsu and Sequoia Capital. New=20
investor Dentsu led the round with $11.5 million in investments, while=20
Sequoia, the only existing investor, made up the balance. Valuation has=20
increased since the previous $10.8 million round, though president Gina=20
Bianchini declined to give details. Dentsu gains an observer seat on the=20
board, which consists of five directors. Funds will be used for technology=
=20
development and building out a Japanese market. Though she declined to shar=
e=20
projections for revenues or profitability, Ms. Bianchini said she did not=
=20
expect the company to raise another round of financing.=20
=09=09http://www.harmonic.net
=09=09
=09=09
=09=09Wireless Provider Bluefish Gets $1.8 in Second Round Funds
=09=09 mail? top
=09=09
=09=09 SAN FRANCISCO (VENTUREWIRE) -- Bluefish Wireless, which develops a w=
ireless=20
platform for two-way infrared communication between Palm-based handheld=20
devices and the Internet, said that it received $1.8 in second round fundin=
g=20
from Allen & Buckeridge and NetworkAsia. The round was led by NetworkAsia, =
a=20
new investor. According to CEO James Fisher the company plans to dedicate t=
he=20
new financing to product, technology, and business development. This was an=
=20
up round, with post-money valuation of $7.5 million. Citing a monthly burn=
=20
rate of $180,000, Mr. Fisher expect the new funds to last through the next=
=20
year. With revenues anticipated by the end of this year, the company is=20
looking to achieve profitability by the third quarter of 2002. As a result =
of=20
this finanancing, Jason Cornell of NetworkAsia has been appointed to=20
Bluefish's five-member board of directors, which includes David Landers of=
=20
Allen & Buckeridge. In November 2000 the company raised $750,000 in Series =
A=20
financing from Allen & Buckeridge and unnamed individuals. Bluefish is=20
currently seeking Series C funds of around $10 million, set to close by the=
=20
first quarter 2002.
=09=09http://www.bluefishusa.com
=09=09
=09=09
=09=09Information Software Firm Casmir Raises $1.6M Second Round
=09=09 mail? top
=09=09
=09=09 SALFORD, England (VENTUREWIRE) -- Casmir, which develops knowledge=
=20
management software, said it closed its second round at GBP 1.1 million ($1=
.6=20
million) from Axiomlab, Yorkshire Fund Managers, the University of Salford=
=20
Enterprises, and individuals. Previous investor Axiomlab led the round and=
=20
all the other participating investors were existing backers. Casimir said t=
he=20
funding would be used for the marketing of its recently released first=20
product, Socialiser, which is a collaborative information retrieval softwar=
e.=20
=09=09http://www.casmir.net
=09=09
=09=09
=09=09NxtPhase Raises $25 Million in Round Three
=09=09 mail? top
=09=09
=09=09 VANCOUVER, Canada (VENTUREWIRE) -- NxtPhase, which develops digital =
and=20
fiber software and hardware for the electric power industry, said it has=20
closed $25 million private equity financing in a third round. Canadian=20
Science and Technology Growth Fund, GE Equity, GrowthWorks Capital,=20
Hydro-Quebec Capitech, Mitsubishi, Reliant Energy Ventures, Perseus 2000,=
=20
Western Technology Seed Investment Fund LImited Partnership, and Wexford=20
participated in the round. New investor GE Equity led the round, which=20
included other new investors Mitsubishi, Perseus 2000, Reliant Energy=20
Ventures, and Wexford Capital. All existing investors participated as well.=
=20
BIBC World Markets served as financial advisors. Post-money, the company's=
=20
valuation was higher than after the last round. Hans Kobler, vice president=
=20
of GE Equity, joins the board of directors, as does managing director of=20
Perseus 2000 John C. Fox. The board includes seven members, including one=
=20
seat reserved for an outside director. Funds will last for a couple of year=
s,=20
said NxtPhase CEO Richard MacKellar, but the company expects to seek more=
=20
financing in the future. In addition to product development and working=20
capital, the new money will also help complete a manufacturing facility tha=
t=20
will integrate, test, and ship products. The company expects the facility t=
o=20
be finished in the third quarter. NxtPhase, which employs 75 currently, wil=
l=20
add at least 25 more by the end of the year. To date the company has raised=
=20
$32.3 million. NxtPhase was formed in 1998 through a merger of Carmanah=20
Engineering and part of Honeywell's space and aviation group.
=09=09http://www.nxtphase.com
=09=09
=09=09
=09=09SafeRent Collects $13.4 Million in Round Three
=09=09 mail? top
=09=09
=09=09 DENVER, Co. (VENTUREWIRE) -- SafeRent, a provider of online credit a=
nd risk=20
management services to the apartment industry, said it has closed $13.4=20
million in third round funding. Archstone Communities, AvalonBay Communitie=
s,=20
Boulder Ventures, Cohen & Steers Capital Management, Hexagon Investments,=
=20
Inter-Atlantic Fund, Internet Realty partners, Mellon Ventures, Potomac=20
Ventures, and Roser Ventures provided the funding. Existing investor Mellon=
=20
Ventures led the round, which included new investors AvalonBay Communities,=
=20
Cohen & Steers Capital Management, Inter-Atlantic Fund, and Internet Realty=
=20
Partners. The remaining participants are existing investors. SafeRent's CEO=
=20
Linda Bush said post-money valuation declined since the last round. No boar=
d=20
appointments resulted from this round. SafeRent said the new money will be=
=20
used for sales and marketing and for launching new products. The company=20
expects to launch services for affordable housing, criminal recommendations=
,=20
portfolio analysis, and small owners. The company will add approximately=20
twelve new positions to its 75-employee staff, half for sales and marketing=
=20
and half for software development. SafeRent expects revenues for 2001 to=20
total between $10 million and $11 million, with the company breaking even i=
n=20
the first quarter next year. The company will "more likely" be a candidate=
=20
for acquisition than for an IPO, said Ms. Bush. The company has raised more=
=20
than $21 million in equity  financing to date.
=09=09http://www.saferent.com
=09=09
=09=09
=09=09HydroCision Gets $2M from Oxford Bioscience, Closes Series E
=09=09 mail? top
=09=09
=09=09 ANDOVER, Mass. (VENTUREWIRE) -- HydroCision, a provider of waterjet=
=20
technology for arthroscopic surgical procedures, said that it closed its=20
series E round with an additional $2 million in financing from Oxford=20
Bioscience Partners. This investment brings the company's Series E round,=
=20
which had its initial close in April, to $7.5 million. New investor Oxford=
=20
Bioscience Partners led this round, with participation from previous=20
investors Newbury Ventures and Zero Stage Capital. The company plans to=20
dedicate the new funds to sales and marketing, as well as for the developen=
t=20
of products geared toward surgical fields related to urology, dermatology,=
=20
and gynecology. According to HydroCision's president and CEO Donald C.=20
Freeman Jr., this was an up round, with a post-money valuation of $19=20
million. Declining to reveal the company's burn rate, Mr. Freeman said he=
=20
expects the funds to last "at least a year" and eyes profitability by=20
mid-year 2002. As a result of this financing, there were no new appointment=
s=20
to the company's five-member board of directors, which includes Jeff Barnes=
=20
of Oxford Bioscience Partners, Bruce Baur of Newbury Ventures, and Paul=20
Kelley of Zero Stage Capital. The company has raised $10.7 million to date.=
=20
=09=09http://www.hydrocision.com
=09=09
=09=09
=09=09PC Management Tech Firm Connected Raises $30M Series F
=09=09 mail? top
=09=09
=09=09 NATICK, Mass. (VENTUREWIRE) -- Connected, which provides corporation=
s with=20
software and services to manage and protect their desktops and mobile PCs a=
s=20
well as stored information assets, said it has secured $30 million in its=
=20
Series F round of funding led by previous investor, Baker Capital and=20
Fidelity Ventures. Five new investors -- Peregine Systems, StarVest Partner=
s,=20
New York Life Capital Partners, Ironside Ventures and Deutsche Banc Alex.=
=20
Brown -- also participated in this round along with existing investors,=20
Granite Ventures, Applied Technology and Solstice Capital. CEO Bob Brennan=
=20
said the company went through a difficult fundraising process, which lasted=
=20
seven months and with more than 60 meetings. He declined to discuss the=20
details of the valuation, saying it was in the $50 million to $100 million=
=20
range, and essentially a flat round compared to the previous round. Connect=
ed=20
plans to use the funding to accelerate the development and marketing of its=
=20
latest software, which is slated to launch at the end of the month. The=20
company, which has a total of 150 employees, also intends to expand its sta=
ff=20
in Europe. Mr. Brennan said Connected has no plans to raise an additional=
=20
funding because the company has sufficient capital to fund all operations=
=20
until it reaches profitability in the first half of 2002. Presently,=20
Connected has about 310 Global 2000 customers, including Hewlett Packard=20
North America, Lucent Technologies, PeopleSoft, and Cisco Systems. Connecte=
d=20
has made $25 million in annualized revenues and expects revenues to continu=
e=20
doubling each year as it has done for the past three years, Mr. Brennan sai=
d.=20
Connected's products and services are geared toward reducing computer=20
downtime by improving backup and recovery of data, migration, and applicati=
on=20
self-healing. Connected said that Intel, a previous investor, was "not=20
encouraged" to invest in this round, and following a mutual agreement, also=
=20
declined investments from Softbank, another previous investor.
=09=09http://www.connected.com
=09=09
=09=09
=09=09Qpass Clears $15 Million in Series F=20
=09=09mail? top
=09=09
=09=09 SEATTLE (VENTUREWIRE) -- Qpass, a provider of commerce services=20
infrastructure, said it raised $15 million in its Series F round from=20
Accenture Technology Ventures, American Express, Hook Partners, J&W Seligma=
n=20
& Company, Oak Investment Partners, Partech International, RRE Ventures,=20
SeaPoint Ventures, Venrock Associates, and individuals. All the investors i=
n=20
this round were previous investors. The company said the funding would be=
=20
used for continuing product development and for client services=20
infrastructure. To date, Qpass has raised $85 million.=20
=09=09http://www.qpass.com
=09=09
=09=09
=09=09Web-Based Planning Software Adaytum Gets $7.4 M Series F
=09=09 mail? top
=09=09
=09=09 MINNEAPOLIS (VENTUREWIRE) -- Adaytum, which provides Internet-based=
=20
enterprise planning software that allows organizations to plan, track,=20
analyze, and forecast business activities, announced it has raised $7.4=20
million in its Series F round from 3i Group, Accenture, American Express,=
=20
J.P. Morgan/H&Q, and St. Paul Venture Capital. Previous investor St. Paul=
=20
Venture Capital led the round, in which all the participating investors wer=
e=20
existing Adaytum backers. Compared to the previous round, the Series F was =
a=20
flat round, said CEO Guy Haddleton. He added that the company now had=20
sufficient funding to sustain the business until it gets to profitability=
=20
sometime before the end of the year. The company plans to use the round to=
=20
continue its worldwide growth in sales, marketing, branding, consulting, an=
d=20
product development. The company, which has a total of 322 employees, plans=
=20
to add 30 more people to its staff by the end of the year, said Mr.=20
Haddleton. Adaytum expects to make between $55 million to $60 million in=20
revenues this year. The company, which has raised over $30 million to date,=
=20
has filed for an initial public offering. Mr. Haddleton said that, in spite=
=20
of the poor performance of the stock market, he has no plans to pull the S-=
1=20
registration filed last June. J.P. Morgan H&Q serves as the lead underwrite=
r,=20
along with Piper Jaffray and FAC Equity. Adaytum is proposing an offering=
=20
price between $9 and $11, and expects to raise $50 million to $60 million i=
n=20
the offering. Adaytum has offices in the U.K., The Netherlands, and=20
Australia, and has 22 distributors worldwide.=20
=09=09http://www.adaytum.com
=09=09
=09=09
=09=09Naviant, Online Marketing Technology Firm, Gets $15 Million
=09=09 mail? top
=09=09
=09=09 NEWTON SQUARE, Pa. (VENTUREWIRE) -- Naviant, the parent company of N=
aviant=20
Marketing Solutions, a provider of marketing tools for customer relationshi=
p=20
management, raised $15 million from Softbank Capital Partners and TL=20
Ventures. Softbank, which had invested $25 million in Naviant in March 2000=
,=20
led the round with a $14 million investment. TL Ventures contributed $1=20
million to the round. Both Steve Murray, of Softbank, and Robert E. Keith=
=20
Jr., of TL Ventures, will take seats on the Naviant board of directors.=20
=09=09http://www.naviant.com
=09=09
=09=09
=09=09 bad news=20
=09=09?
=09=09Report: MetaTV Co-Founder, CEO is Arrested=20
=09=09mail? top
=09=09
=09=09 NEW YORK (VENTUREWIRE) -- Ranjit Singh Sahota, CEO and co-founder of=
=20
interactive television technology provider, MetaTV, was arrested for=20
allegedly raping a 12-year-old girl he met on the Internet, according to a=
=20
report in today's Wall Street Journal. According to the Journal, Andrew Lev=
,=20
MetaTV co-founder and president, will continue to run the company. Mr. Sing=
h=20
Sahota was arrested in San Francisco's Golden Gate Park after approaching a=
n=20
FBI agent who had been posing as a 14-year-old girl with whom Mr. Singh=20
Sahota had conducted sexually explicit online chats, the report said.=20
According to the report, Mr. Sahota is accused of meeting the 12-year-old=
=20
girl in Internet chat rooms last year. Authorities say he arranged to meet=
=20
her in a park and lured her to a hotel room where he allegedly raped her.=
=20
MetaTV, which is based in Sausalito, Calif., raised $28 million in April of=
=20
2001 from investors including Comcast Interactive Capital, Cox=20
Communications, Atrium Venture Partners, Crown Technology Partners, Harron=
=20
Capital, Liberate Technologies, Redpoint Ventures, Rosewood Venture Group,=
=20
and Saints Ventures.
=09=09http://www.metatv.com
=09=09
=09=09
=09=09AtomShockwave President Steps Down, Firm Closes Offices
=09=09 mail? top
=09=09
=09=09 SAN FRANCISCO (VENTUREWIRE) -- AtomShockwave, an online entertainmen=
t and=20
content distribution company, said its president Matt Hulett is stepping=20
down. The company also disclosed some details of its recent staff cuts and=
=20
said that it is closing its New York and Los Angeles offices and phasing ou=
t=20
its London office. A company spokersperson would not confirm published=20
reports that 120 people were laid off last week, but did say that 50=20
employees remain at the company. At its peak, AtomShockwave employed 180=20
people. The company had no comment on severance packages. AtomShockwave sai=
d=20
it will continue to operate its offices in Japan and San Francisco.=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.=20
=09=09http://www.atomshockwave.com
=09=09
=09=09
=09=09Site Monitoring Firm webHancer Cuts 10% of Staff
=09=09 mail? top
=09=09
=09=09 OTTAWA (VENTUREWIRE) -- WebHancer, an Ottawa-based company that moni=
tors and=20
analyses Web site performance, has cut eleven employees from its staff,=20
according to its CEO Bruce Linton. The layoffs resulted in early May from t=
he=20
company's decision to cut its scalability testing operations, which Mr.=20
Linton said was "not a core business area." Those operations had proved an=
=20
obstacle to potential partnerships with companies such as Mercury or RSW th=
at=20
have strong and competing scalability testing offerings, he said. Mr. Linto=
n=20
said he does not expect the company to be profitable before the second=20
quarter of 2002. The company's sales cycle has been extended as potential=
=20
customers have become "incredibly cautious." WebHancer generates revenues=
=20
through monthly subscriptions and is focused on signing customers among the=
=20
top 100 to 200 most highly trafficked Web sites. Mr. Linton did not disclos=
e=20
the company's burn rate, but said that the firm's major costs come from=20
employee salaries. About 75% of the company's 86 employees are technical=20
staff, he said. The company, which last raised funds in June 2000 with a $1=
3=20
million round, will not begin new fundraising until at least September. Mr.=
=20
Linton also declined to comment on the company's current valuation. Venture=
=20
Investment Management Co., Jefferson Partners, Skypoint Capital, McLean=20
Watson Capital, and Capital Alliance are investors in webHancer, as is=20
strategic partner Entrust Technologies. webHancer had also received funding=
=20
from PSINet Ventures as part of a partnership agreement to develop technolo=
gy=20
for e-business programs with PSINet, which filed for bankruptcy last week.=
=20
Mr. Linton said the company had "learned a lot from executive discussions"=
=20
with PSINet but that the PSINet agreement was "not part of our go-to-market=
=20
plan." Despite the layoffs, webHancer is still hiring. Two new employees, i=
n=20
business partnerships and sales, joined the company this week, and spots ar=
e=20
open in operations and R&D, Mr. Linton said.=20
=09=09http://www.webhancer.com
=09=09
=09=09
=09=09Bitlocker.com to End Web Database Infrastructure Service
=09=09 mail? top
=09=09
=09=09 PALO ALTO, Calif. (VENTUREWIRE) -- Bitlocker.com, a provider of Web =
database=20
infrastructure to high volume Web sites, will end its service as of June 15=
,=20
according to the company Web site. CEO Rich Shane declined to comment on th=
e=20
company's financial situation, but indicated that Bitlocker.com may make a=
=20
formal announcement by the end of June. Bitlocker.com has raised $10 millio=
n=20
from Angel Investors, Labrador Ventures, Redleaf Group, two law firms, an=
=20
accounting firm, and individuals including Four11 and RocketMail co-founder=
=20
Michael Santullo.=20
=09=09http://www.bitlocker.com
=09=09
=09=09
=09=09 new products=20
=09=09?
=09=09Telco Soma Networks to Launch with $70 M Raised to Date
=09=09 mail? top
=09=09
=09=09 SAN FRANCISCO (VENTUREWIRE) -- Soma Networks, a "last mile"=20
telecommunications infrastructure company which is launching later this yea=
r,=20
said it has raised $70 million to date over multiple rounds of funding from=
=20
individuals including former N.J. Senator Bill Bradley; Jim Manzi, former C=
EO=20
of Lotus Development; Compaq Computer's co-founder Ben Rosen, and other=20
undisclosed investors. CFO Scott Gibson said Soma plans to launch its first=
=20
product, SomaPort, after it completes its customer trials later this year.=
=20
Soma is developing telecommunication infrastructure to provide converged=20
voice and broadband data services for the "last mile." The technology enabl=
es=20
local exchange carriers, competitive local exchange carriers, wireless=20
telephone companies, and other service providers to provide complex telepho=
ny=20
and data services to residential customers and small offices. Soma says it=
=20
has the only IP wireless system able  to handle a mix of real services=20
including voice and videoconferencing, without the lead time and expense=20
associated with negotiating rights of way, digging trenches, or laying copp=
er=20
or cable. The company said consumer spending for telephony, broadband=20
Internet access, and related residential services will be $105 billion by=
=20
2002 and more than 70% of that spending can be captured by Soma Networks'=
=20
target service provider customers. Yatish Pathak, president and CEO; Martin=
=20
Snelgrove, senior vice president of product strategy; and Michael Stumm,=20
chief technology officer founded the company in January 1998. With 230=20
employees, Soma also has offices in Ottawa, Toronto, and Richardson, Texas.=
=20
=09=09http://www.somanetworks.com
=09=09
=09=09
=09=09Hardware Manufacturing Software Firm Bom.com Launches
=09=09 mail? top
=09=09
=09=09 MOUNTAIN VIEW, Calif. (VENTUREWIRE) -- Bom.com, which provides a Web=
-based=20
software application for hardware design and manufacturing organizations wi=
th=20
a centralized workspace for storing, managing, accessing, and sharing all=
=20
data, announced it has launched its first product. The product, which is al=
so=20
called bom.com, employs a relational database to manage whole-product bills=
=20
of materials and information, allowing companies to reuse design data and=
=20
reduce development costs and speed up time to market. Bom.com charges $100 =
a=20
month per user. The company was founded by CEO Michael Topolovac, previousl=
y=20
founder and CEO of Light & Motion Industries; CTO Eric Larkin, a former=20
consultant with design and development firm D2M; and COO Michael DeLapa, wh=
o=20
was previously interim COO and vice president of Web site publishing at=20
Beyond.com. Bom.com is backed by John Pasquesi, former managing director of=
=20
Helman and Friedman; Jeffrey Rodman, co-founder of Polycom; Jerome Dodson,=
=20
president of Parnassus Fund; Brian Underwood, founder of Silicon Image; and=
=20
other individuals.=20
=09=09http://www.bom.com
=09=09
=09=09
=09=09ForwardAction Launches to Help Sacramento Area Startups
=09=09 mail? top
=09=09
=09=09 ROSEVILLE, Calif. (VENTUREWIRE) -- ForwardAction, a consulting firm =
focused=20
on assisting seed and early stage companies in the Sacramento area, announc=
ed=20
its launch. ForwardAction, which will receive both fees and equity for its=
=20
services, said it already began assisting eight startups in the first quart=
er=20
of 2001. The company focuses on startup companies in the high-tech and=20
consumer packaged goods sectors that have a completed product and are seeki=
ng=20
multimillion-dollar funding to formally launch their companies. A=20
spokesperson for ForwardAction said the firm is working with a number of=20
undisclosed venture capital firms. ForwardAction's current high-tech startu=
p=20
clients include Emaginews, iConvention, and StratoLink. The company said it=
 =20
is in the process of formally launching its incubator, Launch! Idea=20
Accelerator.=20
=09=09http://www.forwardaction.com
=09=09
=09=09
=09=09Biotech Firm Mycometrix Changes Name to Fluidigm
=09=09 mail? top
=09=09
=09=09 SAN FRANCISCO (VENTUREWIRE) -- Mycometrix , a developer of on-chip,=
=20
microscale valves and pumps that control femtoliters of fluid for the=20
biotechnology industry, announced that the company has changed its name to=
=20
Fluidigm. The company, whose micro-pump and valve technology is used to=20
create miniature fluidic circuits, currently targets drug discovery arena.=
=20
Future applications for its products include the drug delivery, diagnostics=
,=20
chemical, and power markets. Fluidigm is backed by InterWest Partners.=20
=09=09http://www.fluidigm.com
=09=09
=09=09
=09=09Software Infastructure Firm Gazoo Changes Name to Talaris
=09=09 mail? top
=09=09
=09=09 SAN FRANCISCO (VENTUREWIRE) -- Gazoo, a software infrastructure comp=
any that=20
develops and markets a platform and application for buyers and suppliers of=
=20
business and personal services, announced it has changed its name to Talari=
s.=20
Currently in stealth mode, Talaris plans to launch in early summer. The=20
company is funded by Jafco Ventures, Charter Venture Capital, and individua=
l=20
investors.=20
=09=09http://www.talaris.com
=09=09
=09=09
=09=09GDX Changes Name of Six Affiliates=20
=09=09mail? top
=09=09
=09=09 LINCOLNSHIRE, Ill. (VENTUREWIRE) -- Global DocuGraphix (GDX), a docu=
ment=20
management and graphics services firm, said six of its affiliate companies=
=20
have changed their names to Global DocuGraphix, for Everything Business. GD=
X=20
cited an increased awareness for brand recognition as the reason for the=20
change. The companies that have changed their names are: Associated Busines=
s=20
Products of Santa Rosa, Calif.; Bank and Business Systems of Baton Rouge,=
=20
La.; BNB Systems of Little Rock, Ark.; Data Pro of Huntsville, Ala.; Inform=
=20
of Nashville, Tenn.; and Structured Graphics of Houston, Texas. Three GDX=
=20
affiliate companies have not changed their name. They are Document Imaging =
of=20
Greenwood Village, Colo.; Scanning Systems of Eden Prairie, Minn.; and=20
TopForm Software of Norcross, Ga. Global DocuGraphix is backed by Thoma=20
Cressey Equity Partners.=20
=09=09http://www.gdx.cc
=09=09
=09=09
=09=09 m&a=20
=09=09?
=09=09Schroder Ventures Acquires Market Place Media For $28M Cash
=09=09 mail? top
=09=09
=09=09 NEW YORK (VENTUREWIRE) -- The Schroder Ventures US Fund, a private e=
quity=20
fund focused on media, communications, technology, and services, said it=20
signed a definitive agreement to acquire Armed Forces Communications, known=
=20
as Market Place Media (MPM), from publicly traded CTN Media Group for $28=
=20
million in cash. MPM provides advertisers with media placement and promotio=
ns=20
services targeted at speciality markets including minority, college, and=20
military markets. Andy Sawyer, senior vice president and CFO of MPM, will=
=20
become president of the newly independent MPM when the deal closes. All 90=
=20
employees will remain with MPM. The company brought in $48 million in=20
revenues in 2000. Schroder Ventures comprises 24 funds with committed capit=
al=20
of more than $7 billion. The firm formed Schroder Ventures U.S. Fund in 199=
9.=20
=09=09http://www.schroders.com
=09=09
=09=09
=09=09Progress Software Acquires Allegrix=20
=09=09mail? top
=09=09
=09=09 BEDFORD, Mass. (VENTUREWIRE) -- The Progress Company, a business uni=
t of=20
publicly traded Progress Software, said it acquired Allegrix, an applicatio=
n=20
service provider based in Santa Clara, Calif. Financial details of the=20
transaction were not disclosed. Allegrix will operate as a business unit of=
=20
Progress Software and remain in Santa Clara, Calif. Co-founders CEO Chris=
=20
Clabaugh and COO Scott Chapman will continue with the combined company and =
no=20
changes are expected to Allegrix's staff. In total, Allegrix had raised $5.=
6=20
million in seed and first round funding from Signia Ventures, the Santa Cru=
z=20
Operation, Western Investment Capital, and individuals.=20
=09=09http://www.allegrix.com
=09=09
=09=09
=09=09Mobile App Firm Everypath Buys Sitraka's Mobility Division
=09=09 mail? top
=09=09
=09=09 SAN JOSE, Calif. (VENTUREWIRE) -- Everypath, a mobile application pl=
atform=20
provider, announced it has acquired the mobility division of Sitraka, a=20
provider of Internet software technologies for IT organizations, in a cash=
=20
and stock transaction of undisclosed value. Matt DiMaria, the company's vic=
e=20
president of marketing, said Everypath will integrate Sitraka's mobile aler=
t=20
and response platform with its own. Mr. DiMaria said Everypath will retain=
=20
over two dozen employees from Sitraka, who will remain in their Toronto=20
office. Everypath has raised about $98 million in funding to date from=20
Accenture's AC Ventures, Amerindo Investments, Asia Tech Management,=20
Comdisco, Dain Rauscher Wessels, Deutsche Bank Alex. Brown, E*Trade,=20
Liberate, Raza Ventures, Redwood Ventures, Robertson Stephens, Sevin Rosen=
=20
Funds, Sun Microsystems, Texas Pacific Group, U.S. Venture Partners,=20
Wasserstein Adelson Ventures, and WR Hambrecht.=20
=09=09http://www.everypath.com
=09=09
=09=09
=09=09 new directors=20
=09=09?
=09=09NETdelivery Appoints CDP Sofinov Exec. as New Director
=09=09 mail? top
=09=09
=09=09 BOULDER, Colo. (VENTUREWIRE) -- NETdelivery, a provider of digital=
=20
technology for online data management, announced that Fabrice Lucherini, an=
=20
investment manager for CDP Sofinov, a subsidiary of the Caisse de depot et=
=20
placement du Quebec, has joined its board of directors. Mr. Lucherini joins=
=20
as the seventh member of the company's board of directors, which includes=
=20
George Middlemas, managing general partner of Apex Investment Partners; Joh=
n=20
Regan, general partner of Keystone Venture Capital; and John R. Walter, the=
=20
former CEO and COO of AT&T. This is a new seat on the board. NETdelivery is=
=20
backed by Apex Investment Partners, Keystone Venture Capital Management,=20
Output Technlogogy Solutions, and United Parcel Service.=20
=09=09http://www.netdelivery.com
=09=09
=09=09
=09=09Wall Street Global Appoints CML Executive to Board
=09=09 mail? top
=09=09
=09=09 NEW YORK (VENTUREWIRE) -- Wall Street Global, a provider of Internet=
-based=20
mutual funds and annuities platforms for mid-size financial institutions,=
=20
announced that Charles M. Leighton, most recently the founder and chairman =
of=20
retailer CML Industries, has joined its board of directors. Mr. Leighton=20
joins as the fifth member of the company's board, which currently does not=
=20
represent any venture investors. To date, Wall Street Global has raised abo=
ut=20
$2 million from the Wall Street Financial Group and unnamed individuals. Th=
e=20
company, which expects to reach profitability within the year, is in the=20
process of raising an undisclosed amount of first round financing.
=09=09http://wallstreetglobal.com
=09=09
=09=09
=09=09 new people=20
=09=09?
=09=09Iris Labs CEO Joins Metera Networks as CEO
=09=09 mail? top
=09=09
=09=09 RICHARDSON, Texas (VENTUREWIRE) -- Metera Networks, which develops o=
ptical=20
service aggregation and management products for metro-area carrier networks=
,=20
said H. Michael Zadikian has joined the company as CEO and president. He ha=
d=20
served as president and CEO of Iris Labs, a member of the Iris Group startu=
p=20
alliance and provider of network management software. Mr. Zadikian, who als=
o=20
gains a seat on the Metera board,  replaces Zareh Baghdasarian, a Metera=20
co-founder and former CEO. Mr. Baghdasarian left the company to join Coree=
=20
Networks as chief operating officer and executive vice president of=20
engineering. Coree Networks, an Iris Group startup company, develops core=
=20
packet switching systems. The Iris Group alliance consists of Coree Network=
s,=20
Iris Labs, Latus Lightworks, and Metera Networks. Metera Networks is backed=
=20
by $24 million from Mayfield Fund, Sevin Rosen Funds, Lightspeed Venture=20
Partners, and Hook Partners.
=09=09http://www.metera.com
=09=09
=09=09
=09=09MobileStar Appoints WorldCom Head as President & CEO
=09=09 mail? top
=09=09
=09=09 RICHARDSON, Texas (VENTUREWIRE) -- MobileStar Network, a provider of=
=20
broadband wireless Internet access, announced the appointment of Robert A.=
=20
Kaiser as its new president and CEO. Prior to joining MobileStar, Mr. Kaise=
r=20
served as CEO of WorldCom broadband solutions group. Mr. Kaiser replaces=20
former president and CEO Mark Goode, who left the company in early March to=
=20
pursue personal interests. In the interim, a "president's office" comprisin=
g=20
Ali Tabassi, the company's chief technology and development officer, George=
=20
Sutton, chief operating officer, and chief financial officer Kevin McAleer,=
=20
maintained the company's day-to-day operations. Prior to joining WorldCom,=
=20
Mr. Kaiser served as CEO and CFO of SkyTel, where he was responsible for=20
SkyTel's financial restructuring which led to WorldCom's acquisition of the=
=20
company. MobileStar is backed by Blueprint Ventures, Mayfield Fund, Norwest=
=20
Venture Partners, Sienna Ventures and Texas Pacific Group.=20
=09=09http://www.mobilestar.com
=09=09
=09=09
=09=09World Wide Packets Adds Architel Systems Co-founder as Pres.
=09=09 mail? top
=09=09
=09=09 SPOKANE, Wash. (VENTUREWIRE) -- World Wide Packets, which provides h=
ardware=20
and software for optical broadband connectivity, said it appointed David=20
Curry president and chief operating officer. Mr. Curry is a board member an=
d=20
an investor in the company, and previously co-founded Architel Systems, a=
=20
telecom and OSS product and services provider in Canada. World Wide Packets=
=20
is backed by Azure Capital Partners, Corning Innovation Ventures, Koch=20
Ventures Group, Millennium Technology Ventures, and Rock Creek Capital.
=09=09http://www.worldwidepackets.com
=09=09
=09=09
=09=09 vc fund news=20
=09=09?
=09=09Leader Capital's Next Joint Venture: Solvos Asia
=09=09 mail? top
=09=09
=09=09 NEW YORK (VENTUREWIRE) -- Leader Capital Management, the New York-ba=
sed=20
corporate venture capital unit of Korean conglomerate SK Global, will launc=
h=20
another joint venture, Solvos Asia, within the next two weeks, according to=
=20
Sabrina H. Moon, vice president of venture capital for SK Global America. T=
he=20
new joint venture is part of Leader's ongoing strategy to launch Asian=20
startups in partnership with its existing U.S.-based portfolio companies.=
=20
Solvos, a New York-based provider of vendor selection automation software,=
=20
will help form Solvos Asia with Leader Capital Management. Typically, a=20
Leader startup will hold 30% of the equity in its Asian counterpart, with S=
K=20
Global leading a group of Asian investors to hold 70% equity. These Asian=
=20
investors include V Society, a group of individual investors. "We'll fund a=
n=20
idea in this country and if there is a value proposition for the Asian mark=
et=20
we bring that company into the Asian market," said Ms. Moon. She added that=
=20
being a unit of SK Global, one of the largest conglomerates in Korea, gives=
=20
Leader access to deals.  "Our position in this market is the gateway to the=
=20
Asian market," she said.  "We are the dealmakers there." Leader Capital=20
Management helped start Hotlens Asia, the Korean affiliate of Hotlens.com, =
a=20
New York-based content management software provider, though Hotlens.com was=
=20
not a Leader portfolio company. Leader Capital Management has also assisted=
=20
in the formation of ITM Korea, the Korean affiliate of an unannounced=20
U.S.-based startup that the venture unit is in the process of funding. Lead=
er=20
Capital Management, which has a vice president, three managing directors, a=
nd=20
two analysts sourcing deals, started in June of 2000 and invested in five=
=20
companies last year.  Leader has invested $3 million over the past year in =
5=20
portfolio companies, and while it has not invested in any new companies thi=
s=20
year, it plans to invest another $3 million in 6 companies by the end of th=
e=20
year, in addition to 2 to 3 follow-on investments and new Asian ventures. T=
he=20
venture unit, which is completely funded by parent company SK Global, has n=
o=20
plans to seek outside limited partners, but doesn't rule it out. The earlie=
st=20
it would search for outside limited partners would be in the next 12 to 18=
=20
months.=20
=09=09http://www.leaderok.com
=09=09http://www.skglobal.com
=09=09
=09=09
=09=09 vw corrections=20
=09=09?
=09=09Bodha
=09=09 mail? top
=09=09
=09=09 NEW YORK (VENTUREWIRE) -- An item about enterprise software and serv=
ices=20
company Bodha in Monday's VentureWire incorrectly described iBrain, a compa=
ny=20
that Bodha CEO Vishal Sikka founded. iBrain was eventually acquired by=20
PatternRx, not PlatnetRx.
=09=09
=09=09
=09=09Silicon Alley Seed Investors
=09=09 mail? top
=09=09
=09=09 NEW YORK (VENTUREWIRE) -- An item about Sevin Rosen Funds in Monday'=
s=20
VentureWire misspelled the name of a New York venture firm with which Sevin=
=20
Rosen has a formal relationship. The firm's name is Silicon Alley Seed=20
Investors, not Silicon Valley Seed Investors.=20
=09=09
=09=09
=09=09company index
=09=09top
=09=09
=09=09Adaytum, Allegrix, AP Engines, AtomShockwave, Atrenta, Avaki, Bandera=
com,=20
Bitlocker.com, Bluefish Wireless, Bom.com, Calix, Casmir, ClairVoyante=20
Laboratories, Connected, Cytura, Delphi Display Systems, Everypath, Fluidig=
m,=20
ForwardAction, Global Docugraphix, Grass Valley Group, Guggenheim.com,=20
Harmonic Communications, Hydrocision, Leader Capital Management, MetaTV,=20
Metera Networks, MetroCommute.com, MobileStar Network, Naviant, NETdelivery=
,=20
ntegres Global Logistics, NxtPhase, Optium, Patricof & Co. Ventures, Qpass,=
=20
Saferent, Schroder Ventures, SK Global, Soma Networks, SRA International, T=
he=20
Cobalt Group, Versatile Optical, Vitesse Semiconductor, Wall Street Global,=
=20
webHancer, William Blair Capital Partners, World Wide Packets=20
=09=09
=09=09
=09=09Let Technologic Partners give you a panoramic view of the
=09=09latest technology that will streamline the way money is
=09=09traded, loaned, and managed:
=09=09
=09=09Financial Services Outlook-July 31
=09=09
=09=09Right now, Internet companies provide technologies that do
=09=09everything from render opaque trading markets transparent
=09=09to attract high net-worth individuals. At Financial Services
=09=09Outlook, you'll hear the CEOs of 50 private e-finance com-
=09=09panies and panel discussions featuring industry leaders,
=09=09who will offer their assessment of the market opportunities.
=09=09
=09=09Register and reserve your place=20
today:http://www.financialservicesoutlook.com/register.asp
=09=09
=09=09
=09=09
=09=09investor index
=09=09top
=09=09
=09=093i Group, Accenture, Accenture Technology Ventures, Allen & Buckeridg=
e,=20
American Express, American Express, Archstone Communities, AvalonBay=20
Communities, AxiomLab, Azure Capital Partners, Boulder Ventures, Canadian=
=20
Science & Technology Growth Fund, Cohen & Steers Capital Management, Dentsu=
,=20
Eaglestone Investment Partners, Flextronics, GE Equity, Growth Works Capita=
l,=20
Hexagon Investments, Hook Partners, Hydro-Quebec CapiTech, Integral Capital=
=20
Partners, Inter-Atlantic Fund, Internet Realty Partners, J. & W. Seligman,=
=20
J.P. Morgan Chase & Co., Lazard Technology Partners, Lovett Miller & Co.,=
=20
Mellon Ventures, Meritech Capital Partners, Mitsubishi, MSD Capital,=20
NetworkAsia, Noro-Moseley Partners, Oak Investment Partners, Partech=20
International, Perseus Capital, Pivotal Asset Management, Polaris Venture=
=20
Partners, Potomac Ventures, Redpoint Ventures, Roser Ventures, RRE Ventures=
,=20
SeaPoint Ventures, Sequoia Capital, St. Paul Venture Capital, University of=
=20
Salford Enterprises, Venrock Associates, Venrock Associates, Western=20
Technology Investment, Wexford, Yorkshire Enterprise Group
=09=09
=09=09
=09=09your account
=09=09
=09=09click on the following links to:
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=09=09=01=07 This newsletter was mailed to you at:  jdasovic@ENRON.COM
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saved, or otherwise copied into a database without the prior written consen=
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=09=09
=09=09VentureWire is a service mark of Technologic Partners
=09=09,2001 Technologic Partners
=09=09=09?
jdasovic@enron.com