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