|
|
Enron Mail |
=09=09?=09
?=09VentureWire =09Friday, May 25, 2001=09=09? ?=09CONTENTS | COMPANIES | INVESTORS | ADVERTISE | TELL A FRIEND=09VentureW= ire Index =09=09'VentureWire =09=09today: 754.4 ? +2.50%=09? ? =09=09Note to Readers: VentureWire will be taking a break for Memorial Da= y.=20 =09=09The next issue will be Tuesday, May 29. =09=09 =09=09 =09=09top stories=20 =09=09 =09=09 =01=07 CyberSafe Lays Off 50% Due to Decreased Sales =09=09 =01=07 BlueLight CEO Mark H. Goldstein Steps Down =09=09 =01=07 SubmitOrder Raises $40 Million, Replaces CEO =09=09 =01=07 Optical Networking Firm Kestrel Reduces Staff by 16% =09=09 =09=09 =09=09TODAY'S FEATURES=20 =09=09Bowman Capital Says P.E. Activity Not Affected by Fund Close =09=09By Suzanne Travers =09=09The decision by Bowman Capital, which invests in public and private= =20 technology companies through hedge funds and a crossover fund, to shut down= =20 its $1.75 billion large-cap technology fund will not affect the firm's=20 private equity activities, according to general partner Matthew Cowan. more= << =09=09UPCOMING EVENTS=20 =09=09June 5-6: San Francisco =09=09 Mobile Outlook 2001 =09=09 =09=09Scott Fox, chairman of the GSM Assoc. will discuss the impact of GSM = phones=20 on the market. There are now 1/2 a billion GSM phones (1 in 12 people on th= e=20 planet) so find out about the planned surge of GSM services across the U.S.= =20 =09=09 =09=09With industry leaders such as Scott Fox planning to be at Mobile Outl= ook, you=20 should be too.=20 =09=09Less than 2 weeks, register today! =09=09 =09=09 =09=09Entrepreneurs and VC-backed company CEOs: =09=09* Where can you obtain FREE detailed information on the =09=09latest quarter'sventure funding by region, industry, =09=09round and stage of development? =09=09* Where are there FREE tools and templates for writing a =09=09business plan and securing venture funding? =09=09* And if you're a young tech company CEO, where can you =09=09hear other CEOs discuss the issues of the day? =09=09VISIT PricewaterhouseCooper's Entrepreneur Resource Center =09=09for this and more --<http://www.pwcerc.com =09=09 =09=09 =09=09 =09=09Slump Hurts New Vantage Group's Expansion Plans=20 =09=09By Amanda Briggs =09=09New Vantage Group, which oversees the management of four angel invest= ment=20 clubs in and around Washington, has slowed its plans its plans to set up=20 investment groups acorss the country, according to founder and managing=20 partner John May. more<< =09=09 =09=09 =09=09 =09=09 =09=09new money =09=09 =09=09 =01=07 Biotech Firm BioMimetic Raises $6.5 Million in Series A =09=09 =01=07 Israeli Routers Maker HyWire Gets $5 Million First Round =09=09 =01=07 Software Firm Actimize Closes Round One with $4 Million =09=09 =01=07 Streaming Ad Firm EyeWonder Raising $6 Million Series B =09=09 =01=07 Web Security Firm WanWall Secures Funding from Intel =09=09 =01=07 Barcelona Design Raises $11M Round Two, Led by Sequoia =09=09 =01=07 Memsic Closes Second Round at $8.25M, Celtic House Leads =09=09 =01=07 Dentist Site Smile-on Closes Second Round with $1.5M=20 =09=09=01=07 In-Depth Systems Gets $600K from Marathon Oil in Round Two =09=09 =01=07 eMarketWorld Gets Debt Financing From The Palladin Group =09=09 =01=07 Answer Financial Takes Equity Stake in Vebnet =09=09 =01=07 PlanCentral Looking For Alliances, $1 Million Second Round =09=09 =09=09 =09=09bad news =09=09 =09=09 =01=07 Report: Terabeam Cuts Staff By 10% =09=09 =01=07 Blue Dolphin Lays Off 20%; Profitability Goal Pushed Back =09=09 =01=07 Dismissals at ShopForSchool.com as Site Looks to Sell Out =09=09 =09=09 =09=09m&a =09=09 =09=09 =01=07 Vsource to Acquire NetCel360 for 19.9% of Common Stock =09=09 =01=07 Broadband Firm WideOpenWest Acquires Assets of Ameritech=20 =09=09=01=07 GourmetMarket.com Buys E-Mail Marketing Firm TargitMail=20 =09=09 =09=09 =09=09new directors =09=09 =09=09 =01=07 Asset Tracking Firm Fulcrum Adds Three to Board =09=09 =09=09 =09=09new people =09=09 =09=09 =01=07 TeaLeaf Technology Appoints Ask Jeeves Exec to CEO =09=09 =01=07 GlobalLearningSystems Promotes Exec VP to President=20 =09=09=01=07 Italian Software Maker hi-flier Names cirlab! co-founder CEO =09=09 =01=07 TManage Appoints New President and CEO =09=09 =01=07 Business Intelligence Software Firm Coremetrics Names CEO =09=09 =09=09 =09=09vc fund news =09=09 =09=09 =01=07 Bedrock's $130 Million Fund Topped Out =09=09 =09=09 =09=09vc personnel =09=09 =09=09 =01=07 Lloyds TSB Development Capital Adds Two to Staff =09=09 =01=07 Insight Capital Partners Makes Two New Appointments =09=09 =01=07 Willis Stein & Partners Appoints CSFB Director as Partner =09=09 =09=09 =09=09vw corrections =09=09 =09=09 =01=07 Asera =09=09 =01=07 BlackHog=20 =09=09=01=07 Auxyn Bioscience Ventures =09=09 =09=09 TOP STORIES... NEW MONEY... BAD NEWS... M&A... NEW DIRECTORS... NEW= =20 PEOPLE... VC FUND NEWS... VC PERSONNEL... VW CORRECTIONS =09=09 =09=09 =09=09top =09=09 =09=09 =09=09This year to date, over $750 million has been =09=09invested in private equity deals in the financial =09=09services sector (source: VentureWire). In this age =09=09of liquidation preference provisions and =09=09retroactive repricings, that's a strong =09=09performance. Financial Services Outlook allows =09=09you a unique insight into where the investment strength =09=09in this market lies, and which private companies are leading =09=09the strongest sectors of the financial technology =09=09and solutions market. =09=09 =09=09Register before June 19 and SAVE=20 $100:http://www.financialservicesoutlook.com/register.asp =09=09 =09=09 =09=09 =09=09 top stories=20 =09=09? =09=09CyberSafe Lays Off 50% Due to Decreased Sales =09=09 mail? top =09=09 =09=09 ISSAQUAH, Wash. (VENTUREWIRE) -- CyberSafe, a provider of electronic= =20 security technology and services, said it eliminated 84 positions, or over= =20 50% of its staff, as a result of declining sales and unfavorable economic= =20 conditions. CyberSafe said the cuts were spread throughout various=20 departments in all of its international offices, including London, Ottawa,= =20 and Singapore. The laid-off employees did receive severance. CyberSafe also= =20 said it would be concentrating on its intrusion detection software and=20 electronic security consultancy businesses and not expanding its=20 authentication software divisions. The company had no comment on=20 profitability or about raising a new round. Eighty people remain with=20 CyberSafe, which has raised $100 million, including a $20.7 million Series = E=20 round in January, from Accel Partners, Deutsche Bank, Financial Technology= =20 Ventures, First Data, Oak Investment Partners, and Polaris Venture Partners= ,=20 among others.=20 =09=09http://www.cybersafe.com =09=09 =09=09 =09=09BlueLight CEO Mark H. Goldstein Steps Down =09=09 mail? top =09=09 =09=09 SAN FRANCISCO (VENTUREWIRE) -- BlueLight.com, an independent e-comme= rce site=20 majority owned by Kmart, said Mark H. Goldstein has stepped down as chief= =20 executive officer. The company said he will now become the long-term Intern= et=20 adviser for Kmart, in order to pursue other interests outside of BlueLight.= =20 Mr. Goldstein was one of the original founders of BlueLight.com, which form= ed=20 in December of 1999. On Wednesday the company announced it would lay off an= =20 undisclosed number of employees and begin to use more of Kmart's marketing= =20 and merchandising staff in order to become more efficient and reduce=20 operating costs. When asked yesterday whether the cost cutting moves combin= ed=20 with Mr. Goldstein's departure meant BlueLight would be rolled into Kmart= =20 completely, BlueLight spokesperson Dave Karraker said, "Right now we're a= =20 private company. Is it possible there will be a buyback by Kmart? It is=20 possible, yes. Anything's possible in this economy." BlueLight has not yet= =20 announced who will replace Mr. Goldstein. The company is also backed by=20 Softbank Venture Capital and Martha Stewart Living Omnimedia.=20 =09=09http://www.bluelight.com =09=09 =09=09 =09=09SubmitOrder Raises $40 Million, Replaces CEO =09=09 mail? top =09=09 =09=09 COLUMBUS, Ohio (VENTUREWIRE) -- SubmitOrder, which provides multi-ch= annel=20 retailers and manufactures with branded customer service and e-fulfillment= =20 applications, said it replaced its CEO and received a commitment for $40=20 million led by return investor Silver Lake Partners. It also received funds= =20 from Amadeus Capital; The Barksdale Group, a return investor; Flextronics; = GE=20 Capital; Imperial Bank; Integral Capital Partners; Merrill Lynch; Morgan=20 Stanley; NCT Ventures; Oracle Venture Fund; Partners Group; Pino Ventures;= =20 and PNC Bank. The company said that it will use money to expand its custome= r=20 base. Ron Elmquist was appointed as the new CEO and replaces Dennis Spina,= =20 who joined the company a year ago, replacing founder Rich Langdale. Mr.=20 Elmquist previously held the position of chairman, president, and CEO of=20 Keystone Automotive Operations. SubmitOrder has raised $300 million since i= t=20 launched in 1999.=20 =09=09http://www.submitorder.com =09=09 =09=09 =09=09Optical Networking Firm Kestrel Reduces Staff by 16% =09=09 mail? top =09=09 =09=09 MOUNTAIN VIEW, Calif. (VENTUREWIRE) -- Kestrel Solutions, an optical= =20 networking company, said it has reduced its workforce of more than 300 by= =20 16%. Kestrel did not provide the exact number of people affected. The compa= ny=20 said the cuts, which also affected outside contractors, is a response to=20 "announced reductions in service-provider spending." The layoffs were acros= s=20 the board, but affected employees within Kestrel's infrastructure and=20 business operations unit most heavily, a company spokesperson said. The=20 employees received a severance package that included career counseling=20 services, she added. Founded in 1997, the company has raised more than $312= =20 million in funding to date from Advanced Technology Ventures, BankAmerica= =20 Ventures, Carlyle Venture Partners, Credit Suisse First Boston, Information= =20 Technology Ventures, Mellon Ventures, Photonic Fund, Polaris Venture=20 Partners, Spectrum Equity Investors, and Worldview Technology Partners.=20 =09=09http://www.kestrelsolutions.com =09=09 =09=09 =09=09 new money=20 =09=09? =09=09Biotech Firm BioMimetic Raises $6.5 Million in Series A =09=09 mail? top =09=09 =09=09 NASHVILLE, Tenn. (VENTUREWIRE) -- BioMimetic Pharmaceuticals, a deve= loper of=20 technology products for the healing and restoration of bone and other=20 tissues, said that it raised $6.5 million in a Series A round led by Burril= l=20 & Co. with participation from Holden Capital. The company plans to dedicate= =20 the new funds to product development and clinical trials. As a result of th= is=20 financing, John Kim and Ann Hanham of Burrill & Co., Michael Block from=20 Holden Capital, and Arnold Caplan of the Skeletal Research Center at Case= =20 Western Reserve University have been granted seats on the company's=20 seven-member board. Telephone 615-844-1280 =09=09 =09=09 =09=09Israeli Routers Maker HyWire Gets $5 Million First Round =09=09 mail? top =09=09 =09=09 NETANYA, Israel (VENTUREWIRE) -- Munich, Germany-based Infineon=20 Technologies, formerly Siemens Semiconductor Group, announced it participat= ed=20 in a $5 million first round for HyWire, an Israeli-startup that develops=20 chips and subsystems for Internet and communication infrastructure routers.= =20 Yozma Venture Capital led the round, an Infineon spokesman said. Infineon= =20 made its investment through its venture capital unit, Infineon Ventures. =09=09http://www.infineon.com =09=09 =09=09 =09=09Software Firm Actimize Closes Round One with $4 Million =09=09 mail? top =09=09 =09=09 HERZELIYA, Israel (VENTUREWIRE) -- Carmel Ventures, a venture capita= l firm=20 focused on software companies, said it invested $4 million in Actimize, a= =20 developer of business intelligence software, as the sole investor in the=20 company's first round of funding. Actimize has developed Active Intelligenc= e,=20 a software platform that analyzes actions within a company's information=20 system and delivers the relevant infromtion to the appropriate people withi= n=20 the company. Avi Zeevi, general partner with Carmel Ventures, will join=20 Actimize's board of directors.=20 =09=09http://www.actimize.com =09=09 =09=09 =09=09Streaming Ad Firm EyeWonder Raising $6 Million Series B =09=09 mail? top =09=09 =09=09 ATLANTA (VENTUREWIRE) -- Internet streaming firm EyeWonder is raisin= g a $6=20 million Series B round with plans to improve the soft online advertising=20 market, according to EyeWonder's CEO John Vincent. Mr. Vincent said the=20 Atlanta-based company expects to look at lead term sheets in the next 45 da= ys=20 and close the round within the next three months. The company already has= =20 commitments from four strategic investors, three of whom are EyeWonder=20 clients. The strategic investors, who are waiting for a venture firm to lea= d=20 the round, include an ad-serving network, two international media=20 conglomerates, and first-round investor Eyevest. Mr. Vincent said EyeWonder= =20 first went after strategic investors and is only now beginning to approach= =20 venture firms with software, telecommunications, and communication interest= s=20 that are located in the mid-Atlantic and Southeastern areas of the U.S. Mr.= =20 Vincent said EyeWonder's valuation was still undetermined because the lead= =20 Series B investor would be pricing the round. Outside investors currently o= wn=20 20% of the company and EyeWonder said it was prepared to relinquish a great= er=20 than 20% equity stake in the Series B round. EyeWonder is using two=20 investment banks, Hudson Allen in New York, and Davis Capital Resources in= =20 Atlanta, as placement agents for the round. EyeWonder, which has both wired= =20 and wireless streaming video capabilities, is focusing on the e-mail and=20 banner advertising marketplace. The company's streaming technology enables= =20 viewers to see an ad without leaving the original site. The new financing i= s=20 to be used for increasing the staff from 27 to 60 by the end of the year,= =20 with 25 of the openings in business development. Mr. Vincent would not=20 disclose current revenue projections but did say that EyeWonder expected to= =20 have 10 e-mail accounts and 20 banner accounts by July when it hopes to be= =20 cash-flow positive. The company is focusing on reseller channel clients,=20 among them CNN, Winstar Interactive Media, and Engage. EyeWonder generally= =20 earns 15% to 20% of what the reseller charges a client to advertise on the= =20 reseller's Web site. EyeWonder also earns revenue through licensing its=20 streaming video platform.=20 =09=09http://www.eyewonder.com =09=09 =09=09 =09=09Web Security Firm WanWall Secures Funding from Intel =09=09 mail? top =09=09 =09=09 TEL AVIV, Israel (VENTUREWIRE) -- WanWall, which develops technology= =20 designed to improve the efficiency and protection of Wide Area Networks,=20 announced that Intel Capital has made an undisclosed investment in the=20 company. WanWall said it will use the funds to support its growth and furth= er=20 develop its technology. Earlier this month WanWall received $3.5 million in= =20 seed funding led by Gemini Israel Funds and Koor Corporate Venture Capital.= =20 WanWall was founded in December 2000 by a group of entrepreneurs led by=20 Yehuda Afek, a professor of computer science at Tel Aviv University; Anat= =20 Bremler-Bar; Yuval Rachmilevitz, formerly with Gilat Satellites and Magnum= =20 Fund; and Dan Touitou. Mr. Rachmilevitz currently serves as CEO of the=20 company. =09=09http://www.wanwall.com =09=09 =09=09 =09=09Barcelona Design Raises $11M Round Two, Led by Sequoia =09=09 mail? top =09=09 =09=09 SUNNYVALE, Calif. (VENTUREWIRE) -- Barcelona Design, which supplies= =20 mixed-signal circuit designs for system-on-a-chip design, said it has close= d=20 an $11 million second round led by new investor Sequoia Capital. Previous= =20 investors Crosslink Capital and chairman Joe Costello also participated in= =20 the round. The company said approximately $500,000 of bridge financing rais= ed=20 in 2000 converts to equity in this round. Post-money valuation was=20 undisclosed, but CEO Mar Hershenson said valuation was "several times up."= =20 Pierre R. Lamond, partner at Sequoia Capital, joins the board of directors,= =20 bringing the total of directors to five. The company said it will use the= =20 funds, which it expects to last for up to two years, for sales and marketin= g.=20 The company, which employs 25 currently, expects to add about 20 more to th= e=20 staff by year's end. After launching the company's first product at the end= =20 of 2000, Barcelona Design expects between $3 million and $4 million in 2001= =20 revenues. The company will probably raise another round early in 2003, said= =20 Ms. Hershenson. Barcelona Design has raised $13.6 million to date. =09=09http://www.barcelonadesign.com =09=09 =09=09 =09=09Memsic Closes Second Round at $8.25M, Celtic House Leads =09=09 mail? top =09=09 =09=09 ANDOVER, Mass. (VENTUREWIRE) -- Memsic, which manufactures advanced = micro=20 electro-mechanical systems (MEMS) sensors and accelerometers, said it raise= d=20 $8.25 million in its second round led by new investor Celtic House, with=20 participation from new investor Ironside Ventures, and past investors, Stil= l=20 River Fund and Investar. The company said the money will be used for=20 infrastructure development and product development. Founded in 1999 by Yang= =20 Zhao, the company develops CMOS-based MEMS accelerometers for smart=20 appliances, gaming peripherals, and automotive sensing designs. Memsic has= =20 received investments from publicly traded Analog Devices. Mr. Zhao previous= ly=20 worked in Analog's micromachined products division.=20 =09=09http://www.memsic.com =09=09 =09=09 =09=09Dentist Site Smile-on Closes Second Round with $1.5M=20 =09=09mail? top =09=09 =09=09 LONDON (VENTUREWIRE) -- Brainspark, a technology and Internet incuba= tor,=20 said Smile-on Holdings, which provides Internet education and online servic= e=20 for dentists, closed its second round with GBP 1.05 million ($1.5 million)= =20 from The Boots Company, Brainspark, and individuals. Smile-on will use the= =20 financing for business expansion and new e-learning projects. Brainspark=20 began incubating Smile-On in January 2000. Smile-on has raised approximate= ly=20 $2 million in two rounds.=20 =09=09http://www.brainspark.com =09=09http://www.smile-on.com =09=09 =09=09 =09=09In-Depth Systems Gets $600K from Marathon Oil in Round Two =09=09 mail? top =09=09 =09=09 HOUSTON (VENTUREWIRE) -- In-Depth Systems, a developer of depth-cont= rol=20 technology for the oil and gas industry, said that it received $600,000 in= =20 second round equity financing from publicly traded Marathon Oil, an oil fir= m=20 engaged in the worldwide exploration and production of crude oil and natura= l=20 gas. The company plans to dedicate the new money to technology development.= =20 As a result of this financing, In-Depth Systems received one seat on=20 Marathon's three-member board. In-Depth Systems, which has a post-money=20 valuation of $12 million, anticipates the new funds to carry the company=20 through to profitability by the second quarter of 2002. The company is=20 currently seeking strategic technology development partners. In November 19= 99=20 In-Depth Systems raised $600,000 in first round financing from individuals= =20 from the Blue Water Venture Group.=20 =09=09http://www.wellboredna.com =09=09 =09=09 =09=09eMarketWorld Gets Debt Financing From The Palladin Group =09=09 mail? top =09=09 =09=09 RICHMOND, Va. (VENTUREWIRE) -- eMarketWorld, which owns and operates= =20 e-business trade conferences, said that it received an undisclosed amount o= f=20 debt financing from the Palladin Group. The company, which filed for Chapte= r=20 11 this month, plans to dedicate the new funds to implement and complete it= s=20 reorganization strategy within the next two months. Financial details of th= e=20 deal were not disclosed. Tanager Capital Group provided consulting services= =20 to the Palladin Group in this transaction. In the past year, eMarketWorld h= as=20 reduced its staff from 194 to 25 employees, or by about 87%. According to C= EO=20 Skip Brickley, eMarketWorld is currently exploring options with a main=20 objective of "maximizing the return to the creditors." In June 1999=20 eMarketWorld raised Series A financing of $6 million from Internet Capital= =20 Group, with unnamed individuals participating.=20 =09=09http://www.emarketworld.com =09=09 =09=09 =09=09Answer Financial Takes Equity Stake in Vebnet =09=09 mail? top =09=09 =09=09 LOS ANGELES (VENTUREWIRE) -- Answer Financial (AFI), an online finan= cial=20 services provider, announced it has formed an alliance with London-based=20 Vebnet, which provides technology and services to support the sale of=20 financial products such as employee and non-employer affinity-group benefit= s,=20 under which it will take an undisclosed equity stake in Vebnet. The allianc= e,=20 which involves licensing AFl's platform to Vebnet, will allow AFI to expand= =20 its business to Europe. Vebnet, which was founded in July 2000, is backed b= y=20 Cross Atlantic Capital Partners. AFI has received funding from DB Capital= =20 Partners, Conning & Company Private Equity Group, and E*Trade Bank.=20 =09=09http://www.answerfinancial.com =09=09 =09=09 =09=09PlanCentral Looking For Alliances, $1 Million Second Round =09=09 mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- PlanCentral, a developer of supply chain= =20 management technology, is on the prowl for alliances with consulting firms = as=20 well as $1 million in second-round funding. According to the company's chie= f=20 executive officer, Deep Parekh, both the partnerships and the financing are= =20 part of the fledgling company's expansion plans. Founded in February 2000,= =20 PlanCentral secured $700,000 in angel funding last October and is now talki= ng=20 to both venture capital firms as well as individual investors. Mr. Parekh= =20 said he hopes to complete the current round by August and, once raised, he= =20 expects the capital to last nine months to a year. To date, the New York=20 company, which employs five and has a burn rate of $40,000 a month, has=20 received commitments for about $400,000 of the $1 million. Mr. Parekh said= =20 the company is looking for an investor to lead the round. Mr. Parekh also= =20 added that he believes that PlanCentral is better positioned for angel mone= y=20 at this point in the company's life cycle. Although the company hasn't=20 officially launched its product, Mr. Parekh said he expects to complete the= =20 beta tests in time for a June launch. Three companies are testing the produ= ct=20 and Mr. Parekh said at least two of them are likely to be customers. He sai= d=20 the company is gearing up to attract customers in the manufactured product= =20 space, which includes producers of personal care items, cleaning products,= =20 and appliances. Mr. Parekh said the company is also looking to forge=20 alliances with a number of mid-level consulting firms capable of selling an= d=20 implementing his company's product. To date, PlanCentral has established=20 relationships with publicly traded Intelligroup, an Edison, N.J.-based=20 company that provides businesses with system integration and custom softwar= e=20 development services, and Deerfield Beach, Fla.-based EV Logix, a provider = of=20 order processing and fulfillment software. According to AMR Research, the= =20 market for supply-chain management software and services will be worth an= =20 estimated $15 billion by 2003 and $20.3 billion by 2004.=20 =09=09http://www.plancentral.com =09=09 =09=09 =09=09 bad news=20 =09=09? =09=09Report: Terabeam Cuts Staff By 10% =09=09 mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- Terabeam, a provider of broadband services= using =20 free space laser optics technology, has laid off 54 workers according to a= =20 report in The Wall Street Journal. The company said the cost-cutting move= =20 will not affect its plans for expansion. The company raised $105 million in= a=20 third round of funding led by Softbank and received $450 million from Lucen= t=20 Technologies as part of a strategic partnership agreement in April 2000. =09=09http://www.terabeam.com =09=09 =09=09 =09=09Blue Dolphin Lays Off 20%; Profitability Goal Pushed Back =09=09 mail? top =09=09 =09=09 WAYLAND, Mass. (VENTUREWIRE) -- The Blue Dolphin Group, an e-mail-b= ased=20 magazine subscription agent, said it cut 20% of its staff, or approximately= =20 16 people, last Thursday and Friday in response to the economic downturn an= d=20 in an effort to conserve cash. The company said it now expects to reach=20 profitability in the next 18 to 24 months, in contrast to an initial=20 projection of 12 months. Blue Dolphin said the cuts were across the board a= nd=20 that 64 employees remain with the firm. All the laid-off employees will be= =20 receiving severance. Blue Dolphin had no comment on how the layoffs affecte= d=20 the burn rate. Blue Dolphin earns revenue based on how many readers of its= =20 free newsletters choose to subscribe to the promoted magazines. In total,= =20 Blue Dolphin has raised $24 million, including a $14 million second round i= n=20 March, from Commonwealth Capital Ventures, Matrix Partners, and North Bridg= e=20 Venture Partners. =09=09http://www.bluedolphin.com =09=09 =09=09 =09=09Dismissals at ShopForSchool.com as Site Looks to Sell Out =09=09 mail? top =09=09 =09=09 ST. LOUIS PARK, Minn. (VENTUREWIRE) -- ShopforSchools.com, a shoppin= g site=20 that contributes part of each purchase to a school chosen by the buyer, has= =20 laid off a portion of its staff, a company spokesperson said. The board has= =20 also decided to sell the company. Cuts included sales and administration=20 positions. The staff size had reached a peak of approximately 75 employees.= =20 ShopforSchools.com has raised $14 million from Affinity Ventures, Delphi=20 Ventures, DRW Venture Partners, Leeds Equity Partners, partners from the=20 investment unit of Dain Rauscher, and individual partners from US Bancporp= =20 Piper Jaffray.=20 =09=09http://www.shopforschool.com =09=09 =09=09 =09=09 m&a=20 =09=09? =09=09Vsource to Acquire NetCel360 for 19.9% of Common Stock =09=09 mail? top =09=09 =09=09 VENTURA, Calif. (VENTUREWIRE) -- Vsource, a publicly traded company = that=20 provides outsourced private exchange and marketplace applications, said it= =20 signed an agreement to acquire the assets of NetCel360, which operates as a= =20 pan-Asian provider of Internet-based e-commerce outsourcing services, in = =20 exchange for 19.9% of Vsource's common shares, valued at $0.37 per share.= =20 Vsource will also assume payment of a $3.45 million bridge financing. When= =20 the deal is complete, Steven Edelson, acting chairman of Vsource, and Phil= =20 Kelly, chairman of NetCel360, will serve as co-chairs of Vsource. Mr. Kell= y=20 will also serve as CEO. Vsource will have headquars in the U.S. and will ha= ve=20 offices in Hong Kong, Singapore, Kuala Lumpur, and Tokyo. Investors in=20 NetCel360 were Total E-commerce, the Baring Asia Private Equity Fund,=20 Softbank China Venture Investment, bainlab, United Parcel Service, and CMC= =20 Magnetics. Vsource is advised by Chicago-based law firm McDermott, Will &= =20 Emery.=20 =09=09http://www.netcel360.com =09=09http://www.vsource.net =09=09 =09=09 =09=09Broadband Firm WideOpenWest Acquires Assets of Ameritech=20 =09=09mail? top =09=09 =09=09 CASTLE ROCK, Colo. (VENTUREWIRE) -- WideOpenWest (WOW), a residentia= l=20 broadband provider, announced an agreement to acquire the assets of the cab= le=20 television network Ameritech New Media, which has been operating under the= =20 name americast. Financial details of the all-cash deal were not disclosed.= =20 Ameritech New Media is owned by Ameritech, which is a subsidiary of publicl= y=20 traded telecommunications firm SBC Communications. WOW said the acquisition= =20 will be completed by the end of the year once municipal franchise rights ha= ve=20 been approved. As a result of the acquisition WOW, which currently services= =20 Denver, will service americast's 310,000 households in Chicago, Detroit,=20 Cleveland, and Columbus, Ohio. WOW said MKMB, which owns authorized Amerite= ch=20 retail stores, acquired an undisclosed stake in the firm and gained a board= =20 seat. Either Martin King or Marc Brooks, the two principals of MKMB, will= =20 join WOW's board of directors, which will now have nine directors. MKMB wil= l=20 also provide marketing and operational services to WOW. WOW said the acquir= ed=20 systems will be used as a platform for introducing digital video and=20 broadband high-speed Internet services to approximately two million=20 residences in the Midwest. WOW currently employs 120 people and will acquir= e=20 americast's offices and an undetermined number of employees in Chicago,=20 Detroit, Cleveland, and Columbus. WOW said investors own approximately 80% = of=20 the company. The company also said it plans on raising a new round in the= =20 fourth quarter. WOW has raised $50 million in first-round funding from Oak= =20 Hill Capital Partners and ABRY Broadcast Partners. Paul, Weiss, Rifkind,=20 Wharton, & Garrison in New York provided legal counsel to WOW. KPMG provide= d=20 financial advice to WOW. The law firm of Arnold & Porter in Washington=20 advised Ameritech.=20 =09=09http://www.wideopenwest.com =09=09 =09=09 =09=09GourmetMarket.com Buys E-Mail Marketing Firm TargitMail=20 =09=09mail? top =09=09 =09=09 BOCA RATON, Fla. (VENTUREWIRE) -- GourmetMarket.com, a publicly tra= ded=20 firm, announced it has acquired Global Technology Marketing International, = a=20 Portsmouth, N.H.-based e-mail marketing firm that operates as TargitMail in= =20 exchange for $400,000 in convertible notes and the assumption of liabilitie= s=20 valued at several million dollars. TargitMail will be the new name of the= =20 acquired company and it will operate as a wholly owned subsidiary of=20 GourmetMarket.com. In 2000 TargitMail generated $6 million in sales and is= =20 expected to surpass this amount in 2001. GourmetMarket.com, which sold its= =20 retail food and wine Web site in March to privately-held VirtualGourmet.com= =20 for a 20% equity in VirtualGourmet.com, said it is changing its business=20 model to become an interactive marketing firm and also said it will soon=20 change its name to reflect its new business model. GourmetMarket.com's CEO= =20 Noel J. Guillama is also acting as the CEO for TargitMail. TargitMail's COO= =20 Cindy Winthrop resigned two weeks ago to pursue other activities.=20 GourmetMarket.com said no other changes were expected to occur at=20 TargitMail's office or to its 20-person staff. GourmetMarket.com also said = it=20 expects to finalize another acquisition of an undisclosed interactive=20 marketing firm located in Boca Raton, Fla., in June. The acquisition target= =20 has received more than $1 million from European venture capital firms. The= =20 company said it is also evaluating five other interactive marketing firms a= s=20 potential acquisitions. In December 2000 the iiGroup announced plans to=20 acquire TargitMail in a mixed cash and stock transaction but was unable to= =20 raise the amount required to complete the deal. TargitMail had received $17= =20 million from Tyco International's CEO and chairman, Dennis Kozlowski, and= =20 Tyco's CFO Mark Swartz. Mr. Kozlowski and Mr. Swartz will act as strategic= =20 advisers to GourmetMarket.com. TargitMail received legal counsel from Watso= n=20 & Bosen in Portsmouth, N.H. GourmetMarket.com received financial advice fro= m=20 the investment banking firm MCG Partners in Boca Raton, Fla.=20 =09=09http://www.targitmail.com =09=09 =09=09 =09=09 new directors=20 =09=09? =09=09Asset Tracking Firm Fulcrum Adds Three to Board =09=09 mail? top =09=09 =09=09 SEATTLE (VENTUREWIRE) -- Fulcrum Technologies, which provides asset = tracking=20 and materials management software applications, said it added three new=20 directors to its board: John Chapple, president and CEO of wireless firm=20 Nextel Partners; Richard P. Fox, president and COO of Internet security fir= m=20 CyberSafe; and John Scully, managing director of Incepta Partners, an=20 investor in the company. Messrs. Chapple and Fox were introduced to Fulcrum= =20 by Incepta, which invested $4.5 million in the company in March to help it= =20 expand internationally. The other members of the five-person board are CEO= =20 Brent Bauer and Ric Reifel, national sales manager.=20 =09=09http://www.fulcrum.net =09=09 =09=09 =09=09 new people=20 =09=09? =09=09TeaLeaf Technology Appoints Ask Jeeves Exec to CEO =09=09 mail? top =09=09 =09=09 SAN FRANCISCO (VENTUREWIRE) -- TeaLeaf Technology, a developer of te= chnology=20 for evaluating online customer experience of companies' Web sites, announce= d=20 the appointment of Frank Vaculin as chief executive officer. He replaces=20 Robert Wenig, who will retain his position as chairman and assume chief=20 technology officer responsibilities. Mr. Vaculin previously served as=20 executive vice president for Ask Jeeves, where he launched the company's=20 business-to-business unit. To date, TeaLeaf has raised $24.1 million from= =20 Foundation Capital, J.P. Morgan Chase & Co., Matrix Partners, and SAP. =09=09http://www.tealeaf.com =09=09 =09=09 =09=09GlobalLearningSystems Promotes Exec VP to President=20 =09=09mail? top =09=09 =09=09 McLEAN, Va. (VENTUREWIRE) -- GlobalLearningSystems, a provider of on= line=20 corporate education products and services, announced the promotion of=20 executive vice president Nicholas R. Schacht to president. As president, Mr= .=20 Schacht will assume operational responsibilities for vice chairman Bernard = J.=20 Luskin, who will remain with the company in a non-executive position. Mr.= =20 Schacht joined the company in June 1999, after serving as group president o= f=20 the Americas for IIR B.V. The company has raised more than $45 million in= =20 three rounds from Emigrant Capital, Hampshire Equity Partners, ParCom=20 Ventures, and Residentie Investments.=20 =09=09http://www.globallearningsystems.com =09=09 =09=09 =09=09Italian Software Maker hi-flier Names cirlab! co-founder CEO =09=09 mail? top =09=09 =09=09 FLORENCE (VENTUREWIRE) -- hi-flier, a developer of matchmaking softw= are for=20 wired and wireless Internet applications, said it has appointed Marco Cupid= i=20 as chief executive officer. Mr. Cupidi, who is co-founder and general partn= er=20 of cirlab!, an investor in hi-flier, has served as the company's chairman= =20 since May 2000. He replaces co-founder Salvatore Manzi and Guido Braccini.= =20 Mr. Manzi becomes vice president of business strategy, while Mr. Braccini= =20 becomes vice president of R=02=15and engineering. Hi-flier was founded in= =20 September 1999 and received initial financing from cirlab!.=20 =09=09http://www.cirlab.com =09=09http://www.hi-flier.com =09=09 =09=09 =09=09TManage Appoints New President and CEO =09=09 mail? top =09=09 =09=09 AUSTIN, Texas (VENTUREWIRE) -- TManage, which provides telecommuting= =20 program-management systems and support infrastructure, said it appointed=20 Carey Balzer as its new president and CEO. He replaces founder Glenn=20 Lovelace, who will remain chairman of the board. Prior to joining TManage,= =20 Mr. Balzer was the president and CEO of Vectris, a company in Austin, Texas= =20 that he founded. TManage is backed by Austin Ventures, Current Ventures, De= ll=20 Computer, G-51 Capital, Hewlett-Packard, High Growth Management, Informatio= n=20 Access Technology, Prime Ventures, and Techxas Ventures. =09=09http://www.tmanage.com =09=09 =09=09 =09=09Business Intelligence Software Firm Coremetrics Names CEO =09=09 mail? top =09=09 =09=09 SAN FRANCISCO (VENTUREWIRE) -- Coremetrics, which provides business= =20 intelligence software and services, said Scott Kauffman has joined as CEO a= nd=20 president. He replaces Brett Hurt, co-founder and former CEO of Coremetrics= ,=20 who will now serve as chairman and chief architect. Mr. Kauffman has served= =20 as president and CEO of several venture-backed technology firms, including= =20 eCoverage and AdKnowledge, and previously held executive positions in=20 magazine publishing. Coremetrics, which has raised a total of $62 million i= n=20 equity and debt financing, had a round of layoffs in April because of=20 decreased demand for high-end consulting services. The company is backed by= =20 Accel Partners, Constantin Partners, Garage.com, General Catalyst, Highland= =20 Capital Partners, Selby Venture Partners, Tinshed, and Western Technology= =20 Investments. =09=09http://www.coremetrics.com =09=09 =09=09 =09=09 vc fund news=20 =09=09? =09=09Bedrock's $130 Million Fund Topped Out =09=09 mail? top =09=09 =09=09 SAN FRANCISCO (VENTUREWIRE) -- Bedrock Capital Partners, an early-st= age=20 investment firm, has fully invested its fund and will not raise another,=20 managing director Jason Rosenbluth told VentureWire. With $130 million tha= t=20 it raised in 1998, Bedrock's first and only fund invested primarily in seed= =20 and first rounds of healthcare and technology companies. Mr. Rosenbluth sai= d=20 the firm has a percentage of the fund set aside for follow-up investment, b= ut=20 declined to say how much. Bedrock's portfolio includes San Francisco-based= =20 Alibris, Palo Alto, Calif.-based Cbyon, Portland, Me.-based Gofish.com, and= =20 Chelmsford, Mass.-based Brix Networks. The founding members of the firm wer= e=20 general partner Paul W. Brown, general partner David Duval, and Jim McLean,= =20 who left the firm to join ComVentures in August 2000. =09=09http://www.bedrockcapital.com =09=09 =09=09 =09=09 vc personnel=20 =09=09? =09=09Lloyds TSB Development Capital Adds Two to Staff =09=09 mail? top =09=09 =09=09 LONDON (VENTUREWIRE) -- Lloyds TSB Development Capital, the venture = capital=20 branch of the Lloyds TSB group, said it added Candida Morley and Jonathan= =20 Caswell to its London office. Ms. Morley has become portfolio director. She= =20 previously was the director of development for the V?Museum. Mr. Caswell, w= ho=20 was previously with the Lloyds TSB group for 12 years, will serve as U.K.= =20 business development executive. They will both report to regional managing= =20 director, Patrick Sellers. LDC has eight offices in the U.K. and invests in= =20 small to mid-size businesses. In 2000, LDC invested $155 million in 25=20 companies. =09=09http://www.ldc.co.uk =09=09 =09=09 =09=09Insight Capital Partners Makes Two New Appointments =09=09 mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- Insight Capital Partners, a private equity= =20 investment firm, said it has made two appointments to its staff. Nancy=20 Weinstein, who was previously entrepreneur-in-residence with Internet=20 incubator idealab!, joins the company as an associate, and Rob Jacobs, who= =20 was previously employed by law firm Cozen & O'Connor, joins as an analyst.= =20 With these appointments the company now employs 42 people. Founded in 1995,= =20 Insight Capital Partners has approximately $1 billion under management. =09=09http://www.insightpartners.com =09=09 =09=09 =09=09Willis Stein & Partners Appoints CSFB Director as Partner =09=09 mail? top =09=09 =09=09 CHICAGO (VENTUREWIRE) -- Willis Stein & Partners, a private equity= =20 investment firm that specializes in negotiated investments with early-stage= =20 companies, announced that Philip B. Pool Jr. has joined the firm as partner= .=20 Most recently Mr. Pool was a managing director of the private fund group at= =20 Credit Suisse First Boston. He will manage the Willis Stein & Partners'=20 corporate development and investor relations activities. Willis Stein=20 currently manages approximately $2.9 billion of equity capital, targeting= =20 investments in U.S.-based public and private companies with transaction=20 values ranging from $100 million to $1 billion.=20 =09=09http://www.willisstein.com =09=09 =09=09 =09=09 vw corrections=20 =09=09? =09=09Asera =09=09 mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- An item in Wednesday's VentureWire about t= he=20 appointment of David Murphy as the new president and CEO of Asera incorrect= ly=20 listed Crosslink Capital as an investor in the company. The firm does not= =20 hold a stake in Asera. =09=09 =09=09 =09=09BlackHog=20 =09=09mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- A story in Thursday's VentureWire incorr= ectly=20 stated that Sunnyvale, Calif.-based BlackHog employs 37 people after recent= =20 layoffs. After cutting 20, BlackHog has 52 employees.=20 =09=09 =09=09 =09=09Auxyn Bioscience Ventures =09=09 mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- An item in Thursday's VentureWire about Au= xyn=20 Bioscience Ventures misspelled the name of the company's chief Ganesh Kisho= re. =09=09 =09=09 =09=09company index =09=09top =09=09 =09=09Actimize, Actimize, ActivX, Answer Financial, Answer Financial, Avent= ail,=20 Barcelona Design, Barcelona Design, Bedrock Capital Partners, Blue Dolphin= =20 Group, Blue Dolphin Group, BlueLight.com, BlueLight.com, BondBook, Bowman= =20 Capital Management, Brainspark, Brainspark, Cataloga, cirlab!, cirlab!, Coa= st=20 Software, Cognistar, Coremetrics, Coremetrics, CyberSafe, CyberSafe,=20 DataChannel, eMarketWorld.com, eMarketWorld.com, EyeWonder, EyeWonder,=20 Fulcrum, Fulcrum, Gearworks, GlobalLearningSystems, GlobalLearningSystems,= =20 Hi-flier, Hi-flier, iMediation, In-Depth Systems, In-Depth Systems, Infineo= n=20 Technologies, Infineon Technologies, Insight Capital Partners, Insight=20 Capital Partners, Kestrel Solutions, Kestrel Solutions, Laser Diagnostic=20 Technologies, Luxxon, Macdonald & Associates, Memsic, Memsic, Neopoint,=20 NetCel360, New Vantage Group, Newtrade Technologies, Novazyme=20 Pharmaceuticals, PlanCentral, Ricerca, ShopforSchool, ShopforSchool, Silico= n=20 Alley Seed Investors, Smile-on Holdings, Smile-on Holdings, SubmitOrder.com= ,=20 SubmitOrder.com, TargitMail, TargitMail, TeaLeaf Technology, TeaLeaf=20 Technology, TeleCentric, TManage, Veripost, Vsource, WANWall, WANWall,=20 WideOpenWest, WideOpenWest, Willis Stein & Partners, Willis Stein & Partner= s=20 =09=09 =09=09 =09=09Free Trial! Hoover's Online Business Subscription =09=09Sign up now for a free one-week Business Subscription to =09=09Hoover's Online and boost your business intelligence. With =09=09coverage of more than 12 million private and public =09=09companies worldwide, Hoover's Online is the ultimate =09=09resource for in-depth business information, including =09=09company and industry profiles, IPO pricings and filings, =09=09news, financial data, officers, competitors and more! =09=09Sign up today for your free=20 trial.http://www.hoovers.com/hoov/freetrial/vwire.html =09=09 =09=09 =09=09 =09=09investor index =09=09top =09=09 =09=09Amadeus Capital Partners, Amadeus Capital Partners, Barksdale Group,= =20 Barksdale Group, Boots Company, Boots Company, Brainspark, Brainspark, Carm= el=20 Ventures, Carmel Ventures, Celtic House, Celtic House, Flextronics=20 International, Flextronics International, GE Capital, GE Capital, Imperial= =20 Bank, Imperial Bank, Integral Capital Partners, Integral Capital Partners,= =20 Intel Capital, Intel Capital, InveStar Capital, InveStar Capital, Ironside= =20 Venture Partners, Ironside Venture Partners, Merrill Lynch Kecalp, Merrill= =20 Lynch Kecalp, Morgan Stanley Dean Witter Venture Partners, Morgan Stanley= =20 Dean Witter Venture Partners, NCT Ventures, NCT Ventures, Oracle Venture=20 Fund, Oracle Venture Fund, Partners Group, Partners Group, Pino Ventures,= =20 Pino Ventures, PNC Bank, PNC Bank, Silver Lake Partners, Silver Lake=20 Partners, Still River Management, Still River Management =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?
|