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