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?=09VentureWire =09Thursday, May 24, 2001=09=09? ?=09CONTENTS | COMPANIES | INVESTORS | ADVERTISE | TELL A FRIEND=09VentureW= ire Index =09=09'VentureWire =09=09today: 736.0 ? -0.03%=09? ? =09=09 =09=09 =09=09top stories =09=09 =09=09 =01=07 Online Financial Technology Firm Xigo Closes Down =09=09 =01=07 Auxyn Bioscience Ventures Raising $200 Million Fund =09=09 =01=07 SpaceVest III Makes First Closing at $82M, Targets $150M =09=09 =01=07 BlueLight.com to Make Layoffs; Will Use More Kmart Staff =09=09 =09=09 =09=09TODAY'S FEATURES=20 =09=09Concord Ventures Begins Raising Fourth Fund =09=09By Jonathan Shieber =09=09Concord Ventures, an Israeli venture capital investor, has begun rais= ing its=20 fourth fund, Concord Ventures III, according to partner Batsheva Elran.=20 more<< =09=09UPCOMING EVENTS=20 =09=09June 5-6: San Francisco =09=09 Mobile Outlook 2001 =09=09 =09=09Anthony Alles, formerly of Shasta Networks (acquired by Nortel for $3= 40=20 million) is back with a new venture called Tahoe Networks. Mobile Outlook= =20 will showcase for the first time their plans to merge the worlds of data an= d=20 mobility.=20 =09=09With industry leaders such as Anthony Alles planning to be at Mobile = Outlook,=20 you should be too. =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=09New Endymion CEO Thinks Acquisitions, IPO =09=09By Michelle Tsai =09=09Steve King, the new CEO of Endymion Systems, an information technolog= y=20 consultancy, won't have much time to bask in his recent promotion. more<< =09=09 =09=09 =09=09 =09=09 =09=09new money =09=09 =09=09 =01=07 ATM Software Firm KAL Raises $3.5M First Round =09=09 =01=07 Malaysian Software Maker BizAid Scores $2.4M in Series A =09=09 =01=07 Property Protection Firm Infraworks Gets $9 M Series A =09=09 =01=07 Alphion Works On $35 Million Series B Close=20 =09=09=01=07 Bharti Televentures Lands $460 Million Capital Injection =09=09 =01=07 IpSEAL Wants $8 Million in Second Round =09=09 =01=07 Molecular Mining Gets $8 Million Round Two =09=09 =01=07 Point Therapeutics Closes $5.4M Series B =09=09 =01=07 Workspeed Raises $15 Million in Series B=20 =09=09=01=07 Supply Chain Software Developer Viewlocity Gets $30 Million =09=09 =01=07 Wireless Services Firm InfoMove Has $6.2 million Third Round =09=09 =01=07 Be Here Raises $6 Million in Series D =09=09 =01=07 Japanese Consumer Finance Firm Priva Secures Funding =09=09 =01=07 CapMan Invests in Danish Distribution Company SMEF Group =09=09 =01=07 Blue Tie Looking for Up To $30 Million =09=09 =09=09 =09=09bad news =09=09 =09=09 =01=07 Black Hog Lays Off 35% of Staff =09=09 =09=09 =09=09new deals =09=09 =09=09 =01=07 Jenoptik and Lambda Form UV Lasers JV Xtreme =09=09 =09=09 =09=09new products =09=09 =09=09 =01=07 Law Firm Gray Cary Launches VC Business Services Subsidiary =09=09 =09=09 =09=09m&a =09=09 =09=09 =01=07 PocketMail Acquires Pocket.com's Assets for Cash & Stock =09=09 =01=07 Evolve Buys Vivant for $2.7 Million in Stock and Cash =09=09 =01=07 Training Software Firm Baydon Buys Human Dynamics for $1M=20 =09=09=01=07 World Internetworks Merges With Trace Affex=20 =09=09=01=07 JB Oxford Buys Certain Assets of eCapitalist Financial =09=09 =01=07 EverythingTele.com Acquires TekSell.com in Stock Deal =09=09 =09=09 =09=09new directors =09=09 =09=09 =01=07 E-Marketplace OneMade Names John J. McLaine Chair. of Board =09=09 =09=09 =09=09new people =09=09 =09=09 =01=07 Mobile Software Provider Bwirelezz Names New CEO =09=09 =01=07 Ronald Brumback Named Pres. & COO of Top Layer Networks =09=09 =01=07 Sur La Table Names Tim Hopkins as New CEO =09=09 =09=09 =09=09vc fund news =09=09 =09=09 =01=07 Irish Investment Firm Crucible to Open New Office in Belfast =09=09 =09=09 =09=09vc personnel =09=09 =09=09 =01=07 VC Management Firm Beacon Telco Appoints Avi Legmann as VP =09=09 =09=09 =09=09vw corrections =09=09 =09=09 =01=07 Bridium =09=09 =01=07 Saipx =09=09 =09=09 TOP STORIES... NEW MONEY... BAD NEWS... NEW DEALS... NEW PRODUCTS...= M&A...=20 NEW DIRECTORS... NEW PEOPLE... VC FUND NEWS... VC PERSONNEL... VW CORRECTIO= NS =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=09Online Financial Technology Firm Xigo Closes Down =09=09 mail? top =09=09 =09=09 SAN FRANCISCO (VENTUREWIRE) -- Xigo, a developer of online financial= =20 technology, said it is closing down. According to CFO Skip Smith, the compa= ny=20 could not secure the additional funding it needed. Mr. Smith said the compa= ny=20 still has a handful of employees on staff while it tries to sell its assets= .=20 He would not say how many employees the company originally had on staff.=20 Xigo's real-time technology searches through streaming data to provide user= s=20 with financial and investment information via e-mail, cell phone, or pager.= =20 Last May the company raised $22 million in a second round of financing from= =20 Capital Z Financial Services Fund II, Angel Investors LP, New Enterprise=20 Associates, and John McKinley, Jr., executive vice president and CTO of=20 Merrill Lynch.=20 =09=09http://www.xigo.com =09=09 =09=09 =09=09Auxyn Bioscience Ventures Raising $200 Million Fund =09=09 mail? top =09=09 =09=09 ST. LOUIS (VENTUREWIRE) -- Auxyn Bioscience Ventures, a fund dedica= ted to=20 life science investments, said it is raising $200 million. The firm's chief= =20 scientist Ganesh Kinore said that the fund has already received a good=20 portion of the $50 million it is seeking from investors in the St. Louis=20 area. He said the fund, slated to close this fall, will invest in life=20 sciences companies focused on gene discovery to modify nutritional quality = of=20 crops to treat human diseases, as well as genomics and infomatics sectors.= =20 Mr. Kinore formed the firm with former Monsanto colleagues, including Arnol= d=20 Donald and Andy Bursky. Telephone 314-657-1050=20 =09=09 =09=09 =09=09SpaceVest III Makes First Closing at $82M, Targets $150M =09=09 mail? top =09=09 =09=09 RESTON, Va. (VENTUREWIRE) -- SpaceVest, a private equity firm that = invests=20 in companies in the space industry, announced that it had made the first=20 closing for its newest fund, SpaceVest III, at $82 million in the middle of= =20 April. SpaceVest began raising the fund in October 2000 and plans on closin= g=20 the fund at $150 million by the end of the year. Ransom J. Parker, the=20 managing partner responsible for administering the fund, said SpaceVest III= =20 will make expansion-stage investments ranging from $5 million to $7 million= =20 in space industry companies and in networking firms. The $150 million is=20 targeted to be fully invested in 15 to 20 companies and will have no=20 exclusive geographical focus. Mr. Ransom also said SpaceVest was seriously= =20 evaluating five North American space industry and networking companies at= =20 present. He said SpaceVest planned to make at least one investment in this= =20 quarter. John B. Higginbotham, Roger P. Widing, Ransom J. Parker, and Richa= rd=20 L. Harris are the managing partners for SpaceVest III. Knickerbocker Capita= l=20 joined the fund as a new limited partner along with previous investors=20 Sofical, a subsidiary of Caisse de Depot et Placement du Quebec; the Swiss= =20 Reinsurance Company; Boeing; and the Fuller Foundation. SpaceVest previousl= y=20 closed SpaceVest II at $138 million in December 1999.=20 =09=09http://www.spacevest.com =09=09 =09=09 =09=09BlueLight.com to Make Layoffs; Will Use More Kmart Staff =09=09 mail? top =09=09 =09=09 SAN FRANCISCO (VENTUREWIRE) -- BlueLight.com, an independent e-comm= erce=20 site majority owned by Kmart, said it will begin using more of Kmart's=20 marketing and merchandising staff in order to become more efficient and=20 reduce operating costs. It will also make an undisclosed number of layoffs = to=20 cut down on duplicate jobs. "Using these resources will keep us on our path= =20 to profitablitlity in a rather soft e-commerce market," said David Karraker= ,=20 a company spokesperson. BlueLight's backers include Softbank and Martha=20 Stewart Living.=20 =09=09http://www.bluelight.com =09=09 =09=09 =09=09 new money=20 =09=09? =09=09ATM Software Firm KAL Raises $3.5M First Round =09=09 mail? top =09=09 =09=09 EDINBURGH, U.K. (VENTUREWIRE) -- KAL, a software company developing= =20 asynchronous transfer mode (ATM) applications, said it closed its first rou= nd=20 at $3.5 million co-led by Royal Bank Ventures and Scottish Equity Partners= =20 (SEP), with additional participation from CA Nominees. Royal Bank Ventures= =20 and SEP will be approving the addition of one independent board seat to KAL= 's=20 board of directors, which will now have five directors. The company said th= e=20 financing would be used for sales, marketing, and for establishing its U.S.= =20 office in Cincinnati. KAL said it plans to hire eight to 10 people for the= =20 Cincinnati office. Founded in 1998, the company said it had no plans for=20 additional funding for the rest of the year. In addition to its Edinburgh= =20 headquarters and new U.S. office, KAL also has offices in Japan and=20 Australia.=20 =09=09http://www.kal.com =09=09 =09=09 =09=09Malaysian Software Maker BizAid Scores $2.4M in Series A =09=09 mail? top =09=09 =09=09 KUALA LUMPUR, Malaysia (VENTUREWIRE) -- BizAid, which develops softw= are for=20 business consultants and small- and medium-sized businesses, has closed MYR= 9=20 million ($2.4 million) in Series A financing. Sole investor OptixLab, an=20 incubator, gains two seats on the board of directors. Funds will be used fo= r=20 research and development, marketing, and general business purposes. BizAid = is=20 preparing to launch its first product in a few months. Formed by OptixLab a= nd=20 Info-House IT in March 2001, BizAid had received approximately $900,000 fro= m=20 Info-House IT prior to Series A. The company expects to have positive cash= =20 flow by 2003. =20 =09=09http://www.mybizaid.com =09=09 =09=09 =09=09Property Protection Firm Infraworks Gets $9 M Series A =09=09 mail? top =09=09 =09=09 AUSTIN, Texas (VENTUREWIRE) -- Infraworks, a provider of digital pro= perty=20 protection technology, announced that it closed $9 million in Series A equi= ty=20 financing led by Moore Capital Management with participation from unnamed= =20 individuals. The company plans to dedicate the new funds to marketing and= =20 sales. As a result of this investment two board seats have been granted to= =20 Moore Capital: James Caccavo, who is managing director, private equity=20 investments and Quinn Morgan, who is principal, private equity investments,= =20 join the seven-member board. In addition to the equity funding, Moore Capit= al=20 Management has also devoted $4.2 million in convertable debt financing to= =20 Infraworks. The company is currently seeking a Series B round between $15 a= nd=20 $25 million, to close in early autumn. =09=09http://www.infraworks.com =09=09 =09=09 =09=09Alphion Works On $35 Million Series B Close =09=09 mail? top =09=09 =09=09 EATONTOWN, N.J. -- Alphion, an end-to-end optical network provider, = expects=20 to close $35 million in Series B funding by July, said CEO Bharat P. Dave.= =20 Founded in July 2000, the Eatontown, N.J.-based company expects to ship its= =20 first product in June of next year, with an eye toward reaching profitabili= ty=20 in third quarter of 2003. Mr. Dave, who said the company has received offer= s=20 from venture capitalists to lead the upcoming financing, expects the Series= B=20 to be an up round. He will hold discussions with top tier VCs in New York,= =20 Boston, and on the west coast. Battery Ventures, the sole investor in=20 Alphion's $16.9 million Series A, will maintain its stake in round two,=20 according to Jim Orlando of Battery Ventures. With Series B funding, Alphio= n=20 will complete its beta trials and prepare the product for shipping. The=20 company, which has a staff of 55, expects to double by the end of the year.= =20 With its all-optical network, Alphion will provide companies with "a huge= =20 cost advantage," said Mr. Orlando. Alphion's competitors include Nortel=20 Networks and Lucent Technologies, which provides an all-optical switch for= =20 communications networks. Alphion will target its all-optical networks for= =20 large North American and European telecommunications carriers such as Globa= l=20 Crossing. For 2002, the company anticipates $15 million in revenues. Plans= =20 may call for an IPO in 2003, said Mr. Orlando.=20 =09=09http://www.alphion.com =09=09 =09=09 =09=09Bharti Televentures Lands $460 Million Capital Injection =09=09 mail? top =09=09 =09=09 NEW DELHI, India (VENTUREWIRE) -- Bharti Televentures, an Indian tel= ecom=20 firm, said it received a $460 million capital injection. The funding came= =20 from Warburg Pincus, which contributed $200 million; Singapore=20 Telecommunications, which provided $200 million; AIF Funds Management, whic= h=20 invested $35 million; International Finance, which provided $20 million; an= d=20 New York Life, with a $5 million investment. Bharti previously received $10= 0=20 million from Warburg Pincus and $400 million from Singapore=20 Telecommunications. =20 =09=09http://www.bhartibt.com =09=09 =09=09 =09=09IpSEAL Wants $8 Million in Second Round =09=09 mail? top =09=09 =09=09 WESTMINSTER, Col. (VENTUREWIRE) -- IpSEAL, a Westminster, Colo. star= tup=20 developing a software platform for coordinating activity within a service= =20 provider's network, is raising a second institutional round of funding for= =20 between $6 million and $8 million, president and CEO Marvin L. Hutchens tol= d=20 VentureWire. Mr. Hutchens plans to bring in a new lead investor as well as= =20 the company's previous investors, iVention Group, Oak Hill Venture Partners= ,=20 and Rock Mountain Ventures. Mr. Hutchens said he planned to close the round= =20 by the end of August. He added that the company, which raised $300,000 fro= m=20 Rock Mountain Ventures in early 2000 and a $7.5 million round from iVention= =20 Group and Oak Hill Venture this past October, would most likely have an up= =20 round. Mr. Hutchens said that ipSEAL would conduct beta testing this summer= =20 and that it expects to roll out its first product in the fall, with its fir= st=20 product delivery and service by the first quarter or second quarter of 2002= .=20 The company will use the next round of funding for continued product=20 development and future marketing initiatives. Mr. Hutchens said that ipSEAL= 's=20 staff would likely grow from 30 to just over 60 by the end of the year.=20 IpSEAL recently hired Robert M. Holburn Jr., former Rogue Wave Software=20 chief financial officer, as its chief operating officer. The company also= =20 plans to announce a new head of marketing. Mr. Hutchens said that while=20 revenues "are still basically three quarters away" the company is moving=20 along slowly and steadily, with a burn rate of well under $300,000 per mont= h.=20 He said that the company would be profitable by some time in 2003, but=20 wouldn't wager a guess as to when when the company might hold an IPO.=20 =09=09http://www.ipseal.com =09=09 =09=09 =09=09Molecular Mining Gets $8 Million Round Two =09=09 mail? top =09=09 =09=09 KINGSTON, Ontario (VENTUREWIRE) -- Molecular Mining, a provider of d= ata=20 mining technology for the life sciences market, said it closed $8 million i= n=20 second round funding led by CDP Sofinov, a subsidiary of the Caisse de depo= t=20 et placement du Quebec (CDP), with participation from the Business=20 Development Bank of Canada, Cardinal Partners, CMDF Queen's Scientific=20 Breakthrough Fund, and S.R. One Limited, a subsidiary of GlaxoSmithKline.= =20 S.R. One Limited and Cardinal Partners co-led the company's first round of= =20 financing of $2 million in March 1999. As a result of this financing, the= =20 company anticipates an additional appointment to its six-member board of=20 directors, which now includes John Clarke of Cardinal Partners. The company= ,=20 which officially launched operations this March, anticipates to be profitab= le=20 within the next two years.=20 =09=09http://www.molecularmining.com =09=09 =09=09 =09=09Point Therapeutics Closes $5.4M Series B =09=09 mail? top =09=09 =09=09 BOSTON (VENTUREWIRE) -- Point Therapeutics, a biotechnology company,= said it=20 raised $5.4 million in its Series B led by the Kaufmann Fund, which=20 contributed $5 million, and from undisclosed institutional and private=20 investors. The money will be used for clinical testing of its lead compound= ,=20 PT-100, which is being developed to treat hematopoietic disorders. This rou= nd=20 is expected to last until the middle of 2002. The board of directors remain= s=20 at five members, since no new seats were granted. The company has raised $2= 0=20 million to date. Past investors include Boston-based Claflin Capital and=20 Chicago-based Portage Ventures. Don Kiepert is the president and CEO of Poi= nt=20 Therapeutics. Point Therapeutics develops therapeutics for the treatment of= =20 cancer and hematopoietic disorders. Telephone 617-636-0673.=20 =09=09 =09=09 =09=09Workspeed Raises $15 Million in Series B=20 =09=09mail? top =09=09 =09=09 SAN FRANCISCO (VENTUREWIRE) -- Workspeed, a provider of Internet and= =20 wireless collaborative applications for commercial real estate, said that i= t=20 has raised $15 million in Series B financing led by previous investor Parte= ch=20 International with participation from Apollo Real Estate Advisors; Archon= =20 Group, a wholly owned subsidiary of Goldman Sachs; Insignia Financial Group= ;=20 Mack-Cali Realty; Newmark and Company Real Estate; Peregrine Systems; Jack= =20 Resnick & Sons, Inc.; Lawrence Ruben Company; Vornado Realty Trust; and=20 unnamed individuals and funds. The company said it plans to use the new fun= ds=20 for product development. The company raised $18 million in Series A financi= ng=20 in May 2000.=20 =09=09http://www.workspeed.com =09=09 =09=09 =09=09Supply Chain Software Developer Viewlocity Gets $30 Million =09=09 mail? top =09=09 =09=09 ATLANTA (VENTUREWIRE) -- Viewlocity, which provides supply chain eve= nt=20 management software, said it has opened its latest funding round with $30= =20 million in capital commitments from undisclosed new investors and previous= =20 investors. The company said the total round could exceed $30 million and it= =20 expected to close the funding within the next two weeks. Viewlocity said it= =20 would use the funding to expand its sales, marketing, and product=20 development. The company, which closed a Series E round in July of last yea= r,=20 withdrew a planned IPO in January 2001. The company's previous investors=20 include BancBoston Ventures, Battery Ventures, BCI Partners, Beacon Group,= =20 CommVest, DHL, Deutsche Post, Marconi Ventures, SingTel, and SK Global.=20 Viewlocity has offices in Atlanta, London, Singapore, and Tokyo.=20 =09=09http://www.viewlocity.com =09=09 =09=09 =09=09Wireless Services Firm InfoMove Has $6.2 million Third Round =09=09 mail? top =09=09 =09=09 KIRKLAND, Wash. (VENTUREWIRE) -- InfoMove, a developer of personaliz= ed,=20 location-based applications and wireless services, said it raised $6.2=20 million in its third round of funding led by previous investor ComROAD, a= =20 German telematics networks company. A number of undisclosed individual=20 investors participated in the round, along with previous InfoMove investors= ,=20 whose names the company declined to disclose. InfoMove's COO Thomas Ross sa= id=20 the company will start to seek additional financing again soon. This latest= =20 round will be used for product development, and to fully launch the company= 's=20 services in the third quarter. Mr. Ross said InfoMove plans to introduce it= s=20 services in Europe through its partnership with ComROAD. InfoMove has raise= d=20 about $15 million to date. Its investors include Broe Companies, BSquare,= =20 Encompass Europe, Garage.com, NTT-ME, and Mitsui Comtek. =09=09http://www.infomove.com =09=09 =09=09 =09=09Be Here Raises $6 Million in Series D =09=09 mail? top =09=09 =09=09 LOS ANGELES (VENTUREWIRE) -- Be Here, a provider of software and ser= vices=20 for panoramic navigable video and still pictures, announced that it has=20 secured $6 million in a Series D round of equity financing led by Snider=20 Capital with participation from prior investors Eastman Kodak, Enterprise= =20 Partners, Intel Capital, Philips Electronics, Totem Investment Partners, an= d=20 Wasserstein Adelson Ventures. The company plans to dedicate the new funds t= o=20 sales, marketing, product development, and infrastructure expansion. As a= =20 result of this financing, Walther Ramos of Snider Capital has joined as the= =20 ninth member of the company's board. Prior to this round the company raised= =20 $17 million in three rounds of financing.=20 =09=09http://www.behere.com =09=09 =09=09 =09=09Japanese Consumer Finance Firm Priva Secures Funding =09=09 mail? top =09=09 =09=09 TOKYO (VENTUREWIRE) -- Residential Funding Corp. (RFC), a wholly own= ed=20 subsidiary of GMAC Financial Services, announced it has made an undisclosed= =20 investment in Priva, a consumer finance company based in Japan that provide= s=20 loans via the Internet and call centers. RFC invested jointly with Japanese= =20 consumer finance company Credia, Itochu Finance, and United Asia Finance.= =20 Priva said it will soon offer its product nationwide through targeted=20 advertising in selected national publications. RFC, which has an office in= =20 Minneapolis, Minn., will own 13.5% of Priva when the transaction is=20 completed. Katsuhiro Saito, president and CEO of Priva, is a member of the= =20 board of directors of Credia. =20 =09=09http://www.gmacrfc.com =09=09 =09=09 =09=09CapMan Invests in Danish Distribution Company SMEF Group =09=09 mail? top =09=09 =09=09 HELSINKI, Finland (VENTUREWIRE) -- CapMan, a private equity investor= in=20 Finland, announced it will invest in SMEF Group, a Denmark-based company th= at=20 distributes machinery, tools, fittings, and assembly parts to the Northern= =20 European furniture, door, and window industry. The investment, which is=20 CapMan's first in Denmark, was made in cooperation with Nordic Private Equi= ty=20 Group, an investment group that CapMan acquired last month. SMEF Group is= =20 expected to acquire three Danish companies, Ludvig M. Larsen, Lind Maskiner= ,=20 and nissenpack. At the close of the transaction, CapMan will own 50% of SME= F=20 Group and the rest will be owned by the shareholders of the three companies= =20 and key managers of SMEF, which made approximately EURO 70 million ($60=20 million) last year and reaped about $3.2 million in profit. Peter Buch Lund= ,=20 a senior partner of CapMan, has joined SMEF Group's board. CapMan has=20 invested about $995 million in 100 companies through 12 funds.=20 =09=09http://www.capman.fi =09=09 =09=09 =09=09Blue Tie Looking for Up To $30 Million =09=09 mail? top =09=09 =09=09 ROCHESTER, N.Y. (VENTUREWIRE) -- BlueTie, a Rochester, N.Y. applicat= ion=20 service provider, is on the prowl for a second round of funding of between= =20 $20 and $30 million, the company's chief executive officer, David Koretz,= =20 told VentureWire. The company, which offers applications such as e-mail,=20 calendar planning, and secure document transferring to small and mid-sized= =20 businesses, will use the funding for product development and to begin an=20 aggressive sales and marketing campaign. BlueTie, founded in March 1999,=20 officially launched in February 2001. It raised about $10 million in its se= ed=20 round from individual angel investors, including Paychex founder B. Thomas= =20 Golisano. Hewlett-Packard, which chose BlueTie for its Garage Program last= =20 year, provided $2.5 million. BlueTie reportedly has a pre-money valuation o= f=20 between $200 million and $300 million, but Mr. Koretz would not confirm tho= se=20 numbers. He said the company is operating in a market he estimates to be on= =20 the order of $22 billion per year. BlueTie, which has about 30 employees, i= s=20 burning through "less than $250,000 per month," he said. BlueTie expects to= =20 break even by the fourth quarter of this year. Roughly 1,000 customers are= =20 using BlueTie services now, said Mr. Koretz. "We require less than 15,000= =20 users and we're profitable," he said. Mr. Koretz expects the company to hav= e=20 50,000 users by the end of the year and 200,000 by the end of next year.=20 BlueTie's applications have all been developed in house, Mr. Koretz said. H= e=20 said the company closed on six new patents last week, which he did not=20 discuss. He believes small customers who don't need a complex package of=20 applications will opt to use his company's services. "Microsoft and Lotus a= re=20 selling 34 million units per year each, but if you want to buy them, you ha= ve=20 to buy a server, software and IT people to manage it all," he said. "By=20 contrast, we charge $25 per user per month, and can have them up and runnin= g=20 in an afternoon."=20 =09=09http://www.bluetie.com =09=09 =09=09 =09=09 bad news=20 =09=09? =09=09Black Hog Lays Off 35% of Staff =09=09 mail? top =09=09 =09=09 SUNNYVALE, Calif. (VENTUREWIRE) -- Black Hog, a provider of supplie= r=20 relationship management products for complex product manufacturing, laid of= f=20 20 people, or 35% of its staff, according to a company spokesperson. Black= =20 Hog executives could not be reached to provide a reason or to comment on=20 whether the employees received severance. Thirty-seven people remain with t= he=20 company. The company has raised $24 million in two rounds from Accel Partne= rs=20 and Invesco Private Capital, and is currently raising a new round. =09=09http://www.blackhog.com =09=09 =09=09 =09=09 new deals=20 =09=09? =09=09Jenoptik and Lambda Form UV Lasers JV Xtreme =09=09 mail? top =09=09 =09=09 JENA, Germany (VENTUREWIRE) -- Jenoptik, a technology holding compan= y which=20 also makes private equity investments, and Lambda Physik, a developer of=20 pulsed UV lasers based in Gottingen, Germany, announced the formation of a= =20 new joint venture called Xtreme technologies to develop extreme ultraviolet= =20 light lasers for manufacturing chip structures. Jenoptik's subsidiary,=20 Jenoptik Laser, Optik Systeme, and Lambda each control 50% of Xtreme, which= =20 will be headquartered in Jena, Germany. Jenoptik said each company would=20 invest sums in the eight-figure deutsche mark range. =09=09http://www.jenoptik-los.de =09=09http://www.lambdaphysik.com =09=09 =09=09 =09=09 new products=20 =09=09? =09=09Law Firm Gray Cary Launches VC Business Services Subsidiary =09=09 mail? top =09=09 =09=09 PALO ALTO, Calif. (VENTUREWIRE) -- Gray Cary Ware & Freidenrich, a l= aw firm=20 representing technology firms, said it launched Gray Cary Venture Pipeline,= a=20 subsidiary which will provide non-legal business services to the technology= =20 venture community. Mike Krenn, formerly with the law firm of Cooley Godward= =20 and a founding board member and executive director of the San Diego Band of= =20 Angels and the San Diego Telecom Council, will serve as managing director o= f=20 the new subsidiary. Mr. Krenn said that while the subsidiary will begin as = a=20 free service offered to clients of the law firm, it will eventually take fe= es=20 from some clients and equity stakes from others.=20 =09=09http://www.graycary.com =09=09 =09=09 =09=09 m&a=20 =09=09? =09=09PocketMail Acquires Pocket.com's Assets for Cash & Stock =09=09 mail? top =09=09 =09=09 SANTA CLARA, Calif. (VENTUREWIRE) -- PocketMail Group, a publicly tr= aded=20 company based in Sydney, Australia, said it acquired Pocket.com's assets fo= r=20 cash and stock. Full terms of the deal were not disclosed. Pocket.com, whic= h=20 provides a mobile e-mail service, will become a U.S. subsidiary of PocketMa= il=20 and has retained 17 of its 25 employees, former president and COO Seth=20 Rosenblatt of Pocket.com said. Mr. Rosenblatt will act as a consultant for= =20 the combined company. Pocket.com began shopping the company around in the= =20 summer of 2000 and arrived at a letter of intent from Pocketmail, a license= e=20 of its product, in December 2000. Pocket.com raised $30 million since its= =20 inception from JAFCO American Ventures, InveStar Capital, Doll Capital=20 Management, and NIF Ventures USA. Pocket.com was advised by Palo Alto,=20 Calif.-based law firm Wilson Sonsini Goodrich & Rosati in the transaction. =09=09http://www.pocket.com =09=09http://www.pocketmail.com.au =09=09 =09=09 =09=09Evolve Buys Vivant for $2.7 Million in Stock and Cash =09=09 mail? top =09=09 =09=09 EMERYVILLE, Calif. (VENTUREWIRE) -- Evolve, a publicly traded compan= y that=20 provides strategic workforce optimization software, announced it has acquir= ed=20 the core assets of Vivant, which operates an Internet marketplace for=20 sourcing and managed IT contractors, for $2.7 million in stock and cash plu= s=20 certain future contingent payments. The assets being acquired include=20 Vivant's contractor management technology and Vivant's marketplace service.= =20 Evolve said it will also retain key Vivant employees, including Jennifer=20 Callison, Vivant's vice president of product marketing. Cindy Padnos,=20 Vivant's President and CEO, will join Evolve as a consultant. Vivant is=20 backed by AVI Management Partners, E*O Investors, Imperial Ventures, and=20 Internet Capital Group. =09=09http://www.evolve.com =09=09http://www.vivant.com =09=09 =09=09 =09=09Training Software Firm Baydon Buys Human Dynamics for $1M=20 =09=09mail? top =09=09 =09=09 DUBLIN, Ireland (VENTUREWIRE) -- Baydon Solutions, which develops so= ftware=20 for training and supporting employees, said it acquired Human Dynamics, a= =20 consulting and training services firm, in a cash-and-stock deal valued at= =20 approximately $1 million at the end of April. Baydon, which had a four-year= =20 working relationship with Human Dynamics, said it will integrate all of Hum= an=20 Dynamics' offerings and services into its company, and will also occupy Hum= an=20 Dynamics' offices in Overland Park, Kan. The company will not lay off any= =20 employees and is looking to hire a minimum of seven to 10 people in the=20 services and development divisions. Baydon received financial advice from= =20 Andersen Accounting in London and Human Dynamics received legal counsel fro= m=20 Douthit Frets Rouse & Gentile. In addition Baydon said it was currently=20 raising a $4 million to $5 million second round targeted to close this=20 summer. Andersen Accounting is acting as the underwriter for this round.=20 Baydon Solutions previously raised $1.5 millio! n in first round funding at= =20 the end of 1999. =09=09http://www.baydon-solutions.com =09=09http://www.hdynamics.com =09=09 =09=09 =09=09World Internetworks Merges With Trace Affex=20 =09=09mail? top =09=09 =09=09 SAN JOSE, Calif. (VENTUREWIRE) -- World Internetworks (WINS), a publ= icly=20 traded company that provides repair, remarketing, and logistics application= s=20 to the data storage market, said it will merge with San Jose, Calif.-based= =20 Trace Affex, which provides duplication and printing system applications an= d=20 CD/DVD storage systems. Terms of the deal were not disclosed. WINS said tha= t=20 no layoffs or office closings will occur and Trace Affex's management=20 structure will maintain intact. WINS is currently completing an acquisition= =20 of San Jose-based Gtdata. When the deal is finished, WINS will change its= =20 name to Gtdata and become a holding company of Trace Affex and TSLI, anothe= r=20 recently acquired company. WINS is advised by investment bank Canaccord=20 Capital, based in Toronto, Ontario. Trace Affex is backed by Toronto-based= =20 Quorum Growth Partners and private investors. It had raised appoximately $1= =20 million to date.=20 =09=09http://www.trace.com =09=09 =09=09 =09=09JB Oxford Buys Certain Assets of eCapitalist Financial =09=09 mail? top =09=09 =09=09 LOS ANGELES (VENTUREWIRE) -- JB Oxford & Co., a provider of discount= =20 brokerage services and a subsidiary of publicly traded JB Oxford Holdings,= =20 announced it has agreed to acquire the customer assets of eCapitalist=20 Financial Services, a broker dealer. Terms of the cash acquisition, which i= s=20 expected to close in the second quarter, were not disclosed. The market val= ue=20 of eCapitalist's customer assets is approximately $30 million, said a JB=20 Oxford & Company spokesperson. Some e-Capitalist employees may join JB Oxfo= rd=20 & Company in an agreement separate from the asset acquisition. Law firm=20 O'Melveney and Myers advised eCapitalist in the deal, while JB Oxford &=20 Company used inside advisors. eCapitalist Financial Services is backed by= =20 undisclosed venture capital firms and individual investors.=20 =09=09http://www.ecapitalist.com =09=09http://www.jboxford.com =09=09 =09=09 =09=09EverythingTele.com Acquires TekSell.com in Stock Deal =09=09 mail? top =09=09 =09=09 GERMANTOWN, Miss. (VENTUREWIRE) -- EverythingTele.com, a=20 business-to-business telecommunications portal, said it has acquired the=20 assets of TekSell.com, which provides business-to-business auctions of=20 information technology equipment, in an all-stock deal. Terms of the=20 acquisition were not disclosed. TekSell.com, which had received more than $= 1=20 million from North Carolina Enterprise Fund and individuals, ran out of cas= h.=20 EverythingTele.com will operate TekSell.com's auction platform and will=20 integrate the platform into EverythingTele.com's offerings. No TekSell.com= =20 employees will join EverythingTele.com. Bass, Berry & Sims advised=20 EverythingTele.com in the deal. EverythingTele.com is backed by more than= =20 $250,000 from individual investors, and expects to have positive cash flow = in=20 the third quarter. =09=09http://www.everythingtele.com =09=09http://www.teksell.com =09=09 =09=09 =09=09 new directors=20 =09=09? =09=09E-Marketplace OneMade Names John J. McLaine Chair. of Board =09=09 mail? top =09=09 =09=09 WASHINGTON (VENTUREWIRE) -- OneMade, an online arts and crafts marke= tplace,=20 announced it has appointed John J. McLaine chairman of the board. Mr.=20 McLaine, who has been a director on the board for a year and a half, serves= =20 as president and CEO of McLaine Ventures and has served as president of Exc= el=20 Communications. He replaces Liavin Mallin, who remains on the board. OneMad= e=20 is backed by Eircon, U.S. Technologies, and individuals. Earlier this week,= =20 VentureWire reported that OneMade acquired Burlington, Vt.-based Collector= =20 Online, which operates an online antique mall, in an all-stock deal.=20 =09=09http://www.onemade.com =09=09 =09=09 =09=09 new people=20 =09=09? =09=09Mobile Software Provider Bwirelezz Names New CEO =09=09 mail? top =09=09 =09=09 AMSTERDAM, The Nethelands (VENTUREWIRE) -- Bwirelezz, a provider of = mobile=20 business software, announced the appointment of Patrick Morley as chief=20 executive officer. Mr. Morley, who currently serves as chief technical=20 officer and board member of Royal KPN N.V., will assume full executive=20 responsibilities at Bwirelezz by the month's end. He replaces co-founder=20 Tymen Selman, who will remain with the company in a sales, marketing, and= =20 business development role. To date, Bwirelezz has raised approximately $1.3= =20 million in financing from The New Economy Trust and unnamed individuals. Th= e=20 company, which maintains operations in the Netherlands and Sweden, is=20 currently seeking venture capital.=20 =09=09http://www.bwirelezz.com =09=09 =09=09 =09=09Ronald Brumback Named Pres. & COO of Top Layer Networks =09=09 mail? top =09=09 =09=09 WESTBORO, Mass. (VENTUREWIRE) -- Top Layer Networks, which specializ= es in=20 high-speed, high-performance network security, said it appointed Ronald=20 Brumback as its new president and first chief operating officer. Mr. Brumba= ck=20 replaces Bruce Cohen in the position of president, and after a short=20 transition period, will also assume Mr. Cohen's CEO title. Mr. Brumback wil= l=20 also take Mr. Cohen's seat on the eight-member board, which includes chairm= an=20 Mike Shanahan and Barry Spinney, the company's founder and vice president o= f=20 engineering. Mr. Cohen, who has been with the company for the last three=20 years, will leave to pursue other opportunities. A Layer Networks=20 spokesperson said the company began searching to fill the COO position in= =20 January 2001. When Mr. Brumback was introduced to the company through Steve= =20 Garfinkle of the Boston office of executive search firm Battalia Winston, i= t=20 was decided that he would join the company in a capacity higher than that o= f=20 a COO. Prior to joining Top Layer Mr. Brum! back was president of=20 Illinois-based Navigation Technologies. Founded in 1997, Top Layer is backe= d=20 by 3Com Ventures, Banc of America Securities, Brad Peery Capital,=20 Egan-Managed Capital, Fidelity Ventures, Granite Ventures, ITOCHU Finance,= =20 LSI Logic, Morgan Stanley Dean Witter, MSD Capital, Raza Ventures, Technolo= gy=20 Crossover Ventures, TI Ventures, Van Wagoner Capital Management, and privat= e=20 investors.=20 =09=09http://www.toplayer.com =09=09 =09=09 =09=09Sur La Table Names Tim Hopkins as New CEO =09=09 mail? top =09=09 =09=09 SEATTLE (VENTUREWIRE) -- Sur La Table, an online, traditional retail= , and=20 catalog kitchenware company, said it has named Tim Hopkins as chief executi= ve=20 officer. Prior to his appointment, the company was headed by Carl Behnke, w= ho=20 will remain with the company as chairman. Most recently, Mr. Hopkins served= =20 as president and CEO for kitchenware retailer Le Gourmet Chef. He will also= =20 serve on Sur La Table's nine-member board of directors that includes Jon=20 Ralph and Charles Rullman, both of Freeman Spogli & Co, Thomas Simpson of= =20 Northwest Venture Associates, and Dennis Weston of Fluke Venture Partners. = In=20 March 2000, Sur La Table raised $20 million in second round financing from= =20 Fluke Venture Partners, Freeman Spogli & Co., Northwest Venture Associates,= =20 Pacific NW Partners SBIC, TWB Investment Partners, as well as individual=20 investors including the members of the Behnke family, Arthur and Eva Wahl,= =20 and Peter Starrett.=20 =09=09http://www.surlatable.com =09=09 =09=09 =09=09 vc fund news=20 =09=09? =09=09Irish Investment Firm Crucible to Open New Office in Belfast =09=09 mail? top =09=09 =09=09 DUBLIN, Ireland (VENTUREWIRE) -- Crucible, an Irish early stage inve= stment=20 company, announced it plans to open an office in Belfast. The company also= =20 announced it has raised $10 million in funding, which will be available for= =20 investments in Northern Ireland technology companies. Crucible said the=20 funding was provided by members of the technology community in Northern=20 Ireland, institutional investors, and undisclosed U.S. venture capital=20 organizations. Crucible said it is currently in Belfast, Ireland, and expec= ts=20 to open its office by the end of the summer when it also expects to make it= s=20 first funding announcement. The company said it has appointed Denis Murphy = of=20 Openwave to head a team of Crucible's board of adviors in Northern Ireland.= =20 Crucible's portfolio includes Dublin include Mobileware, Marrakech, Aran=20 Technologies and Openet Telecom. =09=09http://www.cruciblecorp.com =09=09 =09=09 =09=09 vc personnel=20 =09=09? =09=09VC Management Firm Beacon Telco Appoints Avi Legmann as VP =09=09 mail? top =09=09 =09=09 BOSTON (VENTUREWIRE) -- Beacon Telco, a venture capital management c= ompany=20 that provides funds and incubation services for broadband communications=20 companies, announced Avi Legmann has joined as the company's first vice=20 president. Mr. Legmann recently served as vice president of business=20 development and marketing at Elron TeleSoft. Beacon Telco, which currently= =20 employs four investment professionals, said it will add another partner in= =20 the next quarter. Tech holding company Beacon Photonics formed Beacon Telco= =20 and has contributed $14 million to the venture capital management company's= =20 first fund. Beacon Telco is currently raising an additional $30 million to= =20 $50 million for the same fund, which maintains a carried interest of 20% an= d=20 5% management fee. The fund will invest between $1 million and $2 million i= n=20 seed financing for $4 million to $5 million in total investment. Beacon Tel= co=20 expects to invest in three to five companies each year in the optical=20 component, optical system, and storag! e sectors of broadband communication= s.=20 So far it has two portfolio companies. Beacon Photonics, which owns Beacon= =20 Telco, is backed by Boston University, GlobalVest Management Company, and= =20 consulting company PRTM. =09=09http://www.beacontelco.com =09=09 =09=09 =09=09 vw corrections=20 =09=09? =09=09Bridium =09=09 mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- A story in Wednesday's VentureWire about B= ridium's=20 $3.5 million funding round contained an incorrect description of the=20 company's services. Bridium is a developer of insurance claims software, no= t=20 marketing claims software.=20 =09=09 =09=09 =09=09Saipx =09=09 mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- Due to incorrect information from DataMirr= or, a=20 story in Monday's VentureWire listed Royal Bank of Canada and RT Capital as= =20 investors in saipx, which was acquired by DataMirror. Saipx was self-funded= .=20 =09=09 =09=09 =09=09company index =09=09top =09=09 =09=09American Computer Experience, Avexus, Bang Networks, Baydon Solutions= , Be=20 Here, Beacon Photonics, Bharti Televentures, BizAid, BlackHog.com,=20 BlueLight.com, BlueTie, Brainshark, Bwirelezz, Bwirelezz, CapitalStream,=20 CapMan Capital Management, Captivate Network, CGTime, Colubris Networks,=20 CombineNet, Concord Ventures, Crucible, Cryptek Secure Communications,=20 eCapitalist Financial Services, Endymion Systems, EverythingTele.com, Evolv= e,=20 fusionOne, GMAC Financial Services, Gray Cary Ware & Freidenrich, Human=20 Dynamics, Iclubcentral.com, InfoMove, Infraworks, IpSEAL, JB Oxford &=20 Company, Jenoptik, KAL, Lambda Physik, MEGA International, Metrika, Milkhau= s=20 Laboratory, Molecular Mining, OneMade, OneNest.com, PocketMail Group,=20 PocketScience, Reasoning, SigmaTel, SpaceVest Management Group, Stream=20 International, Sur La Table, TekSell.com, TestChip Technologies, Top Layer= =20 Networks, Top Layer Networks, Trace Affex, Viewlocity, Vivant!, WebEvent,= =20 WebEvent, Workspeed, Xigo, Zarix=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=09AIF Funds Management, CA Nominees, ComROAD, International Finance Cor= p., New=20 York Life Venture Capital Group, Royal Bank Ventures, Scottish Equity=20 Partners, Singapore Telecommunications, Warburg Pincus Ventures =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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