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?=09VentureWire =09Tuesday, May 29, 2001=09=09? ?=09CONTENTS | COMPANIES | INVESTORS | ADVERTISE | TELL A FRIEND=09VentureW= ire Index =09=09'VentureWire =09=09today: 709.8 ? -4.06%=09? ? =09=09 =09=09 =09=09top stories=20 =09=09 =09=09 =01=07 LC39 Venture Group to Return Capital to Investors =09=09 =01=07 Redback Networks Acquires Merlin Systems in $57M Stock Deal =09=09 =01=07 Investment Firm HBM BioVentures Raising $420 Million=20 =09=09=01=07 Accumedia Gets Strategic Investment From Primedia =09=09 =09=09 =09=09TODAY'S FEATURES =09=09FUNDRAISING WATCH=20 =09=09Evergreen Fund Veritas Seeks Outside Investors=20 =09=09By Jonathan Shieber =09=09Despite the political turmoil in Israel and the slump in U.S. more<< =09=09UPCOMING EVENTS=20 =09=09June 5-6: San Francisco =09=09 Mobile Outlook 2001 =09=09 =09=09With Jim Balsillie at the helm, Research In Motion made e-mail mobile= and=20 turned thousands of investment bankers into BlackBerry addicts. With the=20 recent addition of a connected organizer, BlackBerry is poised to start=20 chipping away at the PDA market. So come and hear what Jim has planned next= =20 at Mobile Outlook, only one week away, =20 =09=09Less than 2 weeks, register today! =09=09 =09=09 =09=09Now more relevant than ever. RED HERRING. =09=09 =09=09Since its launch in 1993, RED HERRING has become the favored =09=09source of insider information for entrepreneurs, venture =09=09capitalists, investment bankers and senior executives =09=09redefining the new technology-driven world of business. =09=09 =09=09From MEMs to biotech to the top 100 companies that still =09=09matter, RED HERRING gives you a unique perspective =09=09you won't find in conventional business publications. =09=09Get a FREE TRIAL ISSUE of RED HERRING=20 today!http://www.redherring.com/service/circ/subs_ZP.html =09=09 =09=09 =09=09 =09=09 =09=09 =09=09 =09=09new money =09=09 =09=09 =01=07 CombineNet Seeking Up To $4 Million In Series A =09=09 =01=07 HandyLab To Raise Between $5 and $8 Million =09=09 =01=07 Dental Group JHA Gets $29.8 Million in Second Round=20 =09=09=01=07 MINEit Set to Raise over $4.3M in Second Round =09=09 =01=07 RealTime Media Closes $2.2 M in Series B, Names New Head =09=09 =01=07 CPlane Gets $3 Million From Sun, Bringing Series C to $28 M =09=09 =01=07 ASP Surebridge Gets $15M Equity, $5M Debt in Round Three =09=09 =09=09 =09=09bad news =09=09 =09=09 =01=07 Broadband Products Provider RiverDelta Cuts 20% of Staff =09=09 =01=07 Escrow.com CEO and CFO Resign, Company Restructures=20 =09=09=01=07 OpenTable.com Cuts 17% Staff =09=09 =01=07 Terabeam Confirms Staff Cuts =09=09 =01=07 Quantum Bridge Communications Pulls IPO =09=09 =09=09 =09=09new products =09=09 =09=09 =01=07 IP Communications Infrastructure Firm SnowShore Launches=20 =09=09=01=07 MobileIM Introduces First Product, Talking to VCs =09=09 =01=07 CentraComm Communications Launches =09=09 =01=07 Communications Tech Firm Pelago Launches First Product =09=09 =09=09 =09=09m&a =09=09 =09=09 =01=07 Hicks Muse and Apax Buy BT's Yell For $3 Billion =09=09 =01=07 Allwall.com Acquires Art.com. from Getty Images =09=09 =09=09 =09=09new directors =09=09 =09=09 =01=07 Stonebridge Appoints Paul Stern as New Chairman=20 =09=09=01=07 Advanced Life Sciences Names Univ. of Illinois Prof to Board =09=09 =09=09 =09=09vc fund news =09=09 =09=09 =01=07 Costella Kirsch Closes $50 Million Leasing Fund =20 =09=09 =09=09 =09=09vw corrections =09=09 =09=09 =01=07 Coremetrics =09=09 =01=07 In-Depth Systems =09=09 =09=09 TOP STORIES... NEW MONEY... BAD NEWS... NEW PRODUCTS... M&A... NEW= =20 DIRECTORS... VC FUND NEWS... VW CORRECTIONS =09=09 =09=09 =09=09top =09=09 =09=09 =09=09Let Technologic Partners give you a panoramic view of the =09=09latest technology that will streamline the way money is =09=09traded, loaned, and managed: =09=09 =09=09Financial Services Outlook-July 31 =09=09 =09=09Right now, Internet companies provide technologies that do =09=09everything from render opaque trading markets transparent =09=09to attract high net-worth individuals. At Financial Services =09=09Outlook, you'll hear the CEOs of 50 private e-finance com- =09=09panies and panel discussions featuring industry leaders, =09=09who will offer their assessment of the market opportunities. =09=09 =09=09Register and reserve your place=20 today:http://www.financialservicesoutlook.com/register.asp =09=09 =09=09 =09=09 =09=09 top stories=20 =09=09? =09=09LC39 Venture Group to Return Capital to Investors =09=09 mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- LaunchCenter39 (LC39) Venture Group, a for= mer=20 incubator turned early stage venture capital firm, said it will return=20 significant capital to its leading investors. In a statement, Albert Wenger= ,=20 CEO and co-founder of the company, said LC39's financial structure and=20 difficult market conditions, created "serious challenges to producing=20 appropriate returns" for its investors. He said the company will continue t= o=20 manage its portfolio and make follow-on investments. When it first launched= =20 in January of 2000, LC39, which had plans to act as a full-service=20 incubator, received $25 million in its Series A round of financing. That=20 round was financed by approximately ninety individuals, including David=20 Smilow, founder and chairman of Telebanc; Jay Chiat, chairman of Screaming= =20 Media; and Kevin Ryan, the president and COO of DoubleClick. EVentures Grou= p=20 and Europe@web also invested in LC39. The company provided incubation=20 services to a number of startups including FlexTrader.com, a provider of=20 technical analysis tools for traders, and Investorama.com, a financial=20 information site. Other companies in its portfolio include CoverageCorp,=20 Inviva, Obongo, and Risk Transfer Exchange.=20 =09=09http://www.lc39.com =09=09 =09=09 =09=09Redback Networks Acquires Merlin Systems in $57M Stock Deal =09=09 mail? top =09=09 =09=09 SAN JOSE, Calif. (VENTUREWIRE) -- Redback Networks, a publicly-trade= d=20 company that provides subscriber management and platforms for metro broadba= nd=20 and optical networks, said it will acquire Fremont, Calif.-based Merlin=20 Systems, a developer of metro optical products for carriers and providers, = in=20 a stock deal worth $57 million. Based on the closing stock price of $16.22 = on=20 May 24, Redback will issue 3.5 million shares to the shareholders of Merlin= =20 Systems. The deal was valued based on revenue potential. In November, 2000= =20 Merlin entered an agreement with Redback under which Redback would acquire= =20 the company once Merlin developed its first product: SmartEdge 100, a small= er=20 version of Redback's SmartEdge platform. After the product was finalized an= d=20 sent to its beta customers, Redback and Merlin began acquisition talks in= =20 March. The acquisition is expected to close in the third fiscal quarter of= =20 2001. The approximately 50-person staff of Merlin will remain in its office= s=20 in Fremont, Calif.. Merlin management will remain with Redback, though=20 specific positions have not been assigned yet. Gunderson Dettmer Stough=20 Villeneuve Franklin & Hachigag advised Redback, while Wilson Sonsini Goodri= ch=20 & Rosati advised Merlin Systems. Founded in March 2000, Merlin received=20 Series A funding from U.S. Venture Partners and Artiman Ventures. =09=09http://www.merlinsystems.com =09=09http://www.redback.com =09=09 =09=09 =09=09Investment Firm HBM BioVentures Raising $420 Million=20 =09=09mail? top =09=09 =09=09 ZURICH (VENTUREWIRE) -- HBM BioVentures, a new biotech investment fi= rm,=20 announced its launch. The firm plans to raise CHF 750 million ($420 million= )=20 to invest in both private and public biotech and pharmaceutical companies.= =20 The firm will split its investments between companies in the U.S. and Europ= e.=20 HBM founder Henri B. Meier, former finance director of Roche Holding, serve= s=20 as chairman of the board. Telephone 41-1-266-1070 =09=09 =09=09 =09=09Accumedia Gets Strategic Investment From Primedia =09=09 mail? top =09=09 =09=09 BOULDER, Colo. (VENTUREWIRE) -- Accumedia, a provider of managed Web= =20 publishing services, said it received a strategic investment from magazine= =20 publisher Primedia. The deal is worth several million dollars, including=20 financing and a commitment to use Accumedia's products and services. As par= t=20 of the deal, Primedia's Wedding Network and ModernBride.com group of Web=20 sites will become Accumedia clients. According to Ed Williams, CEO of=20 Accumedia, the company plans to have 15 clients and $4 million in revenues = by=20 the end of the year, with profitablility expected in November. He said the= =20 company will most likely raise another round of funding after that. Accumed= ia=20 previously raised about $8 million from ARCH Venture Partners, Ohio Partner= s,=20 and Catalyst Partners. Accumedia has developed a platform with a suite of= =20 hosted software applications marketed to the publishing and media industrie= s=20 that focus on decreasing the costs and time that goes into setting up and= =20 running a Web site and enabling non-technical employees use the system.=20 "Writers and editors are now presented with an easy to use system," said Mr= .=20 Williams. Accumedia, with a gross monthly burn rate of $420,000, charges so= me=20 upfront deployment fees at first and then uses a page view -based pricing= =20 model which, according to Mr. Williams, 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 annually, with smaller sites paying significantly less. According = to=20 Mr. Williams, Accumedia could be positioned for an IPO at the end of 2002.= =20 "We're certainly waiting for the markets to move," said Mr. Williams.=20 Acquisition is also an option. "We can easily sustain ourselves, and wind u= p=20 looking attractive [to potential acquirers]," he said. The company may also= =20 seek to make a few acquisitions. "There are a couple of functional areas=20 we're now pursuing to enhance our platform, said Mr. Williams. "We could en= d=20 up with one or two." Accumedia is currently in discussions to acquire=20 database and customer information technology to use for back-end operations= . =09=09http://www.accumedia.com =09=09 =09=09 =09=09 new money=20 =09=09? =09=09CombineNet Seeking Up To $4 Million In Series A =09=09 mail? top =09=09 =09=09 PITTSBURGH (VENTUREWIRE) -- After the launch of its first product,= =20 CombineNet, which develops commerce and resource allocation applications, i= s=20 seeking to raise $2 million to $4 million in its Series A by mid-summer,=20 according to vice president of sales and strategic development Sean Devine.= =20 CombineNet's first customer is defense electronics provider Raytheon, based= =20 in Lexington, Mass. Its product, called ClearBox, will be used to allocate= =20 satellite time for government agency use in satellites being produced by=20 Raytheon. The proceeds of the Series A will be used for new product=20 development, sales and marketing professionals, and to round out its=20 executive management team. The company has 12 employees and may grow to 20 = by=20 the end of the year. Mr. Devine told VentureWire that the company is valued= =20 somewhere below $10 million and that an exit through acquisition was more= =20 likely than a future IPO. The company expects to reach profitability by the= =20 second quarter of 2002. Before it completes its Series A financing,=20 CombineNet will close a $500,000 bridge loan before the end of June. The=20 funding will come from individual investors and should be paid back within= =20 six months. CombineNet is in talks with three different market segments for= =20 its product. The company is holding discussions with New York-based Tigris= =20 Consulting, which could offer CombineNet's software to clients as a way to= =20 reduce costs. It will also target sourcing software companies, such as=20 Pittsburgh-based FreeMarkets and Pleasanton, Calif.-based Commerce One, whi= ch=20 could potentially include CombineNet's applications in their software=20 packages. Combinet will also seek end user customers, such are steel=20 manufactures, which can use the software internally for supplies procuremen= t.=20 Revolution Ventures led the company's $1 million seed round in the fall of= =20 2000, with private investors participating. Chairman and chief technology= =20 officer Tuomas Sandholm founded CombineNet in April 2000.=20 =09=09http://www.combinenet.com =09=09 =09=09 =09=09HandyLab To Raise Between $5 and $8 Million =09=09 mail? top =09=09 =09=09 ANN ARBOR, Mich. (VENTUREWIRE) -- HandyLab, a maker of micro-sized= =20 laboratories, is preparing to launch a new round of funding of between $5= =20 million and $8 million in its Series B round, HandyLab CFO James R. Adox to= ld=20 VentureWire. The funding is earmarked for hiring and R&D. According to=20 HandyLab president Kalyan Handique, the company expects the funding to last= =20 until the end of 2002, when clinical trials and FDA approval are expected t= o=20 be finalized. HandyLab, founded in June 2000, is developing portable=20 laboratories the size of a desktop computer that will enable doctors to do= =20 on-the-spot diagnostics, such as blood testing. The firm is trying to make= =20 smaller versions of its labs, some of which will be hand-held, Mr. Adox=20 said. The company expects to launch its first product around the first=20 quarter of 2003, he added. According to Mr. Handique, the firm has a=20 valuation of "less than $10 million." He said HandyLab is burning through= =20 less than $1 million per year. It raised $2.4 million in Series A funds las= t=20 year from EDF Ventures, Avalon Investments, XR Ventures, and The Wolverine= =20 Fund, a venture funding organization sponsored by the University of Michiga= n.=20 He said the firm still has a substantial amount of that round left. HandyL= ab=20 now has nine employees, and should have about 20 by the end of the year. Th= e=20 company has no direct competitors other than large laboratories, Mr. Adox= =20 said. The company believes it can revolutionize diagnostics, as doctors are= =20 typically forced to wait between 36 and 48 hours for test results. By=20 contrast, Mr. Adox said, HandyLab's technology can provide test results=20 immediately, thereby saving critical time in addressing illness and avoidin= g=20 unnecessary treatment.=20 =09=09http://www.handylab.com =09=09 =09=09 =09=09Dental Group JHA Gets $29.8 Million in Second Round=20 =09=09mail? top =09=09 =09=09 DUBLIN (VENTUREWIRE) -- James Hull Associates, which operates dental= =20 practices and an online dental information Web site, said it secured GBP 2= 1=20 million ($29.8 million) in second round of funding. The Bank of Scotland=20 provided $22.7 million in debt and equity financing and previous investor 3= i=20 invested $7.1 million. JHA said the financing would be used to increase the= =20 number of its private dental practices in the U.K. 3i now owns 37.5% of JHA= .=20 PricewaterhouseCoopers advised 3i in the transaction.=20 =09=09http://www.jameshull.co.uk =09=09 =09=09 =09=09MINEit Set to Raise over $4.3M in Second Round =09=09 mail? top =09=09 =09=09 BELFAST, U.K. (VENTUREWIRE) -- MINEit, which develops digital analyt= ical=20 software, said it will begin raising a second round of financing at the en= d=20 of May. MINEit said it is targeting over GBP3 million ($4.3 million) from= =20 both U.S. and European venture capital firms and is currently talking to a= =20 dozen firms. MINEit also said it plans to open a Boston office before the e= nd=20 of the third quarter. The company said its current valuation is over $20=20 million and also that it plans to reach profitability sometime in 2002. In= =20 October 2000 MINEit raised $1.4 million from ACT Venture Capital and the=20 University Challenge Fund. MINEit also has offices in Chicago, London, and= =20 Stuttgart, Germany.=20 =09=09http://www.mineit.com =09=09 =09=09 =09=09RealTime Media Closes $2.2 M in Series B, Names New Head =09=09 mail? top =09=09 =09=09 WYNNEWOOD, Pa. (VENTUREWIRE) -- RealTime Media, an online promotiona= l=20 agency, said that it has raised $2.2 million in Series B financing led by= =20 previous investor NewSpring Ventures, with participation from new investors= =20 Covenent Partners, and Lancaster Investment Partners. Unamed individuals ha= ve=20 also re-invested in this round. Additionally, RealTime announced the=20 appointment of John Hopper as president, CEO, and board member. The company= =20 plans to dedicate the new funds to product development as well as for marke= t=20 expansion. As a result of this financing, there were two appointments to th= e=20 company's five-member board of directors: Janet Paroo of NewSpring ventures= =20 has been appointed as the company's chairman, and Neil Contess, who was=20 formerly a principal with marketing agency Dugan Valva Contess. Also sittin= g=20 on the board is Rob Adams, a principal of Safeguard Scientific, and Marc=20 Lederman, of NewSpring Ventures. Mr. Hopper succeeds Janet Paroo, who had= =20 served as interim CEO upon Scott Shapiro's departure from the company in la= te=20 2000. Prior to joining RealTime, Mr. Hopper served as managing partner with= =20 Einson Freeman, where he headed EinsonHealth, the firm's healthcare=20 promotions unit, as well as Einson Latin America. The company has raised=20 approximately $11 million in two rounds of funding. Backers include by Ben= =20 Franklin/Progress Capital Fund, NewSpring Ventures, Pennsylvania Early Stag= e=20 Partners, and Safeguard Scientifics.=20 =09=09http://www.realtimemedia.com =09=09 =09=09 =09=09CPlane Gets $3 Million From Sun, Bringing Series C to $28 M =09=09 mail? top =09=09 =09=09 LOS ALTOS, Calif. (VENTUREWIRE) -- CPlane, which develops software f= or the=20 telecommunications industry, announced that it has received a strategic=20 investment of $3 million from Sun Microsystems. This investment brings the= =20 company's Series C round, which had its initial close in January, to $28=20 million. The round was led by new investor Pequot Capital Management, with= =20 participation from new investors Amerindo Investments and Woodside Fund.=20 Previous investors CMEA Ventures and Onset Ventures also participated in th= is=20 round. The company said it plans to dedicate the new funds to product=20 development, as well as for expansion of its engineering, marketing and sal= es=20 teams. Although a specific amount was not stated, CPlane's resident and CEO= =20 Nelu Mihai said that the post-money valuation for this round was "in the $1= 00=20 million range," an up round. As a result of this financing, Sun Micosystems= =20 has been granted a non-voting observer seat on the five-member CPlane board= =20 that includes Susan Mason, general manager of ONSET Ventures; Gordon Hull,= =20 general partner, CMEA Ventures; and Michael Karfopoulous, senior vice=20 president, Pequot Capital Management/Private Equity. The company has raised= =20 approximately $38 million to date from investors including CMEA Ventures,= =20 Onset Ventures, Pequot Capital Management, and Woodside Fund.=20 =09=09http://cplane.com =09=09 =09=09 =09=09ASP Surebridge Gets $15M Equity, $5M Debt in Round Three =09=09 mail? top =09=09 =09=09 LEXINGTON, Mass. (VENTUREWIRE) -- Surebridge, an application service= =20 provider for mid-sized businesses, announced it has closed $15 million in= =20 equity and $5 million in debt in a third round of financing. Spectrum Equit= y=20 Investors, which led the previous round, returned to lead this round, which= =20 also included new investors Axxon Capital and Compaq and all existing=20 investors The Berkshire Group, The Goldman Sachs Group, Providence Growth= =20 Investors, and a group of executives at Thomas H.Lee Partners. Credit Suiss= e=20 First Boston acted as placement agent for the equity financing. Fleet=20 National Bank provided the $5 million line of credit. No appointments to th= e=20 board resulted from this round. With this new financing, Surebridge has $27= =20 million in cash. Funds will be used for sales, marketing, and operations=20 infrastructure, and to bring the company to profitability by the end of thi= s=20 year. Surebridge raised $36 million in a second round in February 2000. =09=09http://www.surebridge.com =09=09 =09=09 =09=09 bad news=20 =09=09? =09=09Broadband Products Provider RiverDelta Cuts 20% of Staff =09=09 mail? top =09=09 =09=09 TEWKSBURY, Mass. (VENTUREWIRE) -- RiverDelta Networks, a developer o= f=20 carrier-class switching and service provisioning products for broadband=20 carriers, said it has laid-off about 20% if its workforce, leaving the=20 company with a little over 200 employees. A company spokesperson said the= =20 layoffs are a response to market conditions and are meant to put the compan= y=20 in line with the current economic climate. While the layoffs were across th= e=20 board, the sales unit was hit the hardest, she said. RiverDelta, which has= =20 raised about $46 million in funding to date, is in the process of raising i= ts=20 third round of funding, the spokesperson confirmed. RiverDelta is backed by= =20 Pequot Capital Management, Battery Ventures, Charles River Ventures, and=20 individual investors. =09=09http://www.riverdelta.com =09=09 =09=09 =09=09Escrow.com CEO and CFO Resign, Company Restructures=20 =09=09mail? top =09=09 =09=09 SANTA ANA, Calif. (VENTUREWIRE) -- Escrow.com, which provides online= =20 transaction processing and escrow services, said its CEO Russell Stern and= =20 CFO David Sklar resigned from the company. Escrow.com's chairman John=20 Snedegar, who is also the president and CEO at Micro General, will be the n= ew=20 president and CEO at Escrow.com. Escrow.com said the resignations follow a= =20 change in operating structure at Escrow.com whereby the company will begin = to=20 outsource its support services, such as human resources, administrative, an= d=20 financial, to Micro General in an effort to conserve cash. Micro General,= =20 also based in Santa Ana, Calif., spun out Escrow.com in October 1999 and ha= s=20 unexercised warrants amounting to 51% equity in Escrow.com. Escrow.com said= =20 it expects to be profitable in the second quarter of 2002. Escrow.com has= =20 raised $44 million in three rounds and is backed by Chase Capital Partners,= =20 Chase MGEN Tech Fund, Fidelity National Financial, Micro General, Network= =20 Commerce, Pacific Century CyberWorks, Softbank, and VerticalNet.=20 =09=09http://www.escrow.com =09=09 =09=09 =09=09OpenTable.com Cuts 17% Staff =09=09 mail? top =09=09 =09=09 SAN FRANCISCO (VENTUREWIRE) -- OpenTable.com, which provides custome= r=20 relationship applications and online reservation services to restaurants,= =20 said it cut 18 employees, or 17% of its staff, in its implementation and=20 services department as a result of operating efficiencies. Eighty five=20 employees remain at OpenTable.com. All the laid-off workers received=20 severance packages. OpenTable.com said this was its third restructuring thi= s=20 year and also said that it plans to be profitable by mid-2002. At its peak,= =20 OpenTable.com employed 140 people. To date, OpenTable.com has raised $50=20 million in four rounds, including a $42 million round in December, from=20 American Express, Benchmark Capital, Draper Richards, ICON, Impact Venture= =20 Partners, Lettuce Entertain You Enterprises, Prescient Capital, and Zagat= =20 Survey.=20 =09=09http://www.opentable.com =09=09 =09=09 =09=09Terabeam Confirms Staff Cuts =09=09 mail? top =09=09 =09=09 KIRKLAND, Wash. (VENTUREWIRE) -- Terabeam, a provider of fiberless = optical=20 networking services, confirmed reports that it laid off 54 people, or 10% o= f=20 its staff, on Wednesday. Terabeam said the cuts were a cost-cutting measure= =20 to conserve the company's financing and occurred in all departments in=20 Terabeam's offices in the greater-Seattle area. The company had no comment= =20 about expected profitability. All the employees who were cut received=20 severance. Terabeam now employs 473 people. The company, which commercially= =20 launched its services in February, also said it plans to launch its service= s=20 in Denver this summer. Terabeam has raised over $555 million, including a= =20 $450 million investment from Lucent Technologies, Bessemer Venture Partners= ,=20 Fidelity Management & Research, Madrona Venture Group, Merrill Lynch IBK=20 Positions, Morgan Stanley Dean Witter Private Equity, Oak Hill Venture=20 Partners, Softbank Capital Partners, Softbank Venture Capital, and T. Rowe= =20 Price Associates.=20 =09=09http://www.terabeam.com =09=09 =09=09 =09=09Quantum Bridge Communications Pulls IPO =09=09 mail? top =09=09 =09=09 ANDOVER, Mass. (VENTUREWIRE) -- Quantum Bridge Communications, which= makes=20 optical networking equipment, said it withdrew its initial public offering= =20 due to current market conditions. Quantum Bridge, which raised $102 million= =20 in April 2000 is backed by investors including the Texas Pacific Group, BCI= =20 Partners, Morgan Stanley Dean Witter Private Equity, Comcast Interactive=20 Capital, KMC Investment Partners, Pequot Capital Management, J. P. Morgan= =20 Capital, First Union Capital Partners, Dain Rauscher Wessels, an affiliate = of=20 FleetBoston Financial, New Enterprise Associates, Lazard Technology Partner= s,=20 and Atlas Venture. The company has raised about $124 million over three=20 rounds of funding.=20 =09=09http://www.quantumbridge.com =09=09 =09=09 =09=09 new products=20 =09=09? =09=09IP Communications Infrastructure Firm SnowShore Launches=20 =09=09mail? top =09=09 =09=09 CHELMSFORD, Mass (VENTUREWIRE) -- SnowShore Networks, which provides= =20 IP-enhanced communications infrastructure products to service providers,=20 announced it has launched. SnowShore was founded in May 2000 by its preside= nt=20 and CEO Joel Hughes, the co-founder of ViaDSP and DSP Software Engineering,= =20 and David Penny, co-founder of ViaDSP and former vice president and general= =20 manager of Natural MicroSystems, consulting services division. Mr. Penny=20 serves as the company's vice president of marketing and business developmen= t.=20 SnowShore's third co-founder Eric Burger, who served as chief scientist at= =20 ADC/Centigram Communications, is the company's chief technology officer. So= =20 far, SnowShore has secured $10.5 million in Series A financing from Charles= =20 River Ventures and Matrix Partners. A spokeswoman said the company plans to= =20 raise additional financing sometime in the next quarter. SnowShore, which h= as=20 60 employees, expects to reach profitability in 2003.=20 =09=09http://www.snowshore.com =09=09 =09=09 =09=09MobileIM Introduces First Product, Talking to VCs =09=09 mail? top =09=09 =09=09 SCOTTSDALE, Ariz. (VENTUREWIRE) -- MobileIM, which develops mobile= =20 communications technology, said it introduced its first product for univers= al=20 instant messaging. The product, also called MobileIM, enables instant=20 messaging on any text-messaging capable device. The company was founded in= =20 May 2000 by president and CEO Eric D. Johnson and CTO Jason Grovert. The=20 company has raised $250,000 to date and is seeking to raise $3 million by= =20 August. It is in talks right now with four venture capital firms, three bas= ed=20 in Seattle. The company said it is valued at $6 million and approximately 1= .8=20 million shares will be offered at $1.58 a share. There are 4 million shares= =20 currently outstanding. With a burn rate at $15,000 a month and six employee= s,=20 the senior management team is not receiving a salary. =20 =09=09http://www.mobileim.com =09=09 =09=09 =09=09CentraComm Communications Launches =09=09 mail? top =09=09 =09=09 FINDLAY, Ohio (VENTUREWIRE) -- CentraComm Communications, which prov= ides=20 broadband Internet access, enterprise hosting, wireless networking, and=20 consulting, has launched. CentraComm has raised $250,000 internally, and is= =20 in the process of raising an additional $500,000 to $1 million from local= =20 investors. The company said the money will be used for equipment and =20 salaries. The company, which currently employs four people, is interviewing= =20 for a vice president of sales and marketing. Though the board is still bein= g=20 created, two seats will be made available to new investors. Co-founder Lynn= =20 Child is the chairman. The company said it expects the board to eventually= =20 have five members. The company has plans to seek venture capital but did no= t=20 give a timeline. =09=09http://www.centracomm.net =09=09 =09=09 =09=09Communications Tech Firm Pelago Launches First Product =09=09 mail? top =09=09 =09=09 NEEDHAM, Mass. (VENTUREWIRE) -- Pelago Networks, which develops tech= nology=20 for local service providers to deploy voice, data, and video services, said= =20 it officially launched its first product, Odysea, an integrated platform fo= r=20 the creation and deployment of subscriber services in local networks. The= =20 company raised $17 million in its first round of funding in December 2000.= =20 Investors include Brooktrout, Charles River Ventures, Columbia Capital, and= =20 Bessemer Venture Partners.=20 =09=09http://www.pelagonet.com =09=09 =09=09 =09=09 m&a=20 =09=09? =09=09Hicks Muse and Apax Buy BT's Yell For $3 Billion =09=09 mail? top =09=09 =09=09 LONDON (VENTUREWIRE) -- Private equity firms Hicks Muse Tate & Furst= and=20 Apax Partners said they have purchased British Telecom's Yell, a yellow pag= es=20 directory and classified advertising business, for GBP 2.14 billion ($3=20 billion). The firms had been in talks for several months, though the final= =20 purchase price has dropped significantly from the $4.3 billion said to be= =20 offered earlier. British regulators recently capped Yell's advertising rate= s,=20 which contributed to the decreased bid. The transaction will be financed=20 partly with GBP 1.45 billion in debt underwritten by Merrill Lynch and CIBC= .=20 Merrill Lynch also advised both Hicks Muse and Apax in the deal. =09=09http://www.yellgroup.com =09=09 =09=09 =09=09Allwall.com Acquires Art.com. from Getty Images =09=09 mail? top =09=09 =09=09 RALEIGH, N.C. (VENTUREWIRE) -- Allwall.com, an online retailer of w= orks on=20 paper, said that it acquired Art.com, an online art retailer, from Getty=20 Images, a publicly traded visual content provider in a cash deal for an=20 undisclosed amount. According to CEO Joshua Chodniewicz, allwall.com has=20 purchased Art.com's domain name, intellectual property, and customer list.= =20 Mr. Chodniewicz declined to disclose the price, but said it was "less than= =20 $119 million," which was the purchase price when Getty acquired Art.com in= =20 May 1999. This was a cash deal. According to Mr. Chodniewicz, none of=20 Art.com's employees have been retained by allwall.com, nor has the company= =20 acquired any real estate. Prior to its acquisition by Getty, Art.com's=20 backing of approximately $11 million came from venture capital firms=20 Benchmark Capital, Minotaur Capital Management, Sandler Capital Management,= =20 and Softbank Technology Ventures. Allwall.com, which has a pre-money=20 valuation of 12.5 million, is expecting to close an undisclosed amount of= =20 Series A financing from individuals in the first week of June. The company = is=20 also currently seeking $10 million in Series B financing, to close by the e= nd=20 of the summer.=20 =09=09http://allwall.com =09=09http://www.art.com =09=09 =09=09 =09=09 new directors=20 =09=09? =09=09Stonebridge Appoints Paul Stern as New Chairman=20 =09=09mail? top =09=09 =09=09 DALLAS (VENTUREWIRE) -- Stonebridge Technologies, a technology consu= lting=20 firm, said it appointed current board member Paul G. Stern as its new=20 chairman of the board. Mr. Stern replaces Ray Smith, whose tenure expired a= nd=20 who will no longer sit on the board. They both co-founded Washington-based= =20 private equity firm Arlington Capital Partners, which is Stonebridge's=20 largest shareholder. Mr. Stern also co-founded Washington-based Thayer=20 Capital Partners. Stonebridge has raised $130 million to date from Arlingto= n=20 Capital Partners, Cahill Warnock & Co., Mellon Ventures, Ticonderoga Capita= l,=20 and William E. Simon & Sons. =09=09http://www.sbti.com =09=09 =09=09 =09=09Advanced Life Sciences Names Univ. of Illinois Prof to Board =09=09 mail? top =09=09 =09=09 WOODRIDGE, Ill. (VENTUREWIRE) -- Advanced Life Sciences, a developer= of=20 therapeutic compounds to fight infection, inflammation, and cancer, announc= ed=20 it has appointed Dr. Israel Rubenstein to its board of directors. Dr.=20 Rubenstein is a research scientist in respiratory medicine at the Cancer=20 Center, University of Illinois at Chicago and in oncology at the VA Chicago= =20 Health Care System, West Side Division. He will be the fourth member on the= =20 company's board, which currently has three seats available. Advanced Life= =20 Sciences has raised about $25 million in funding from individual investors= =20 and through research grants. A spokeswoman said the company is in discussio= ns=20 with financial institutions to raise an additional $25 million to $50 milli= on=20 in venture capital.=20 =09=09http://www.advancedlifesciences.com =09=09 =09=09 =09=09 vc fund news=20 =09=09? =09=09Costella Kirsch Closes $50 Million Leasing Fund =20 =09=09mail? top =09=09 =09=09 MENLO PARK, Calif. (VENTUREWIRE) -- Costella Kirsch, a venture-leasi= ng firm,=20 said it closed Costella Kirsch Venture Partners, a $50 million warrant-base= d=20 venture leasing fund, at the end of January. General partner Bill Kirsch sa= id=20 the fund would provide debt financing of $1 million to $3.5 million in the= =20 early stages of information technology companies. The fund will primarily= =20 make investments in Silicon Valley-based firms. Mr. Kirsch, who is in charg= e=20 of administering the fund, said the fund is expected to be fully committed = by=20 the first quarter in 2002 in 20 to 25 companies. Costella Kirsch Venture=20 Partners has committed a total of $20 million to 10 companies. In addition = to=20 Mr. Kirsch, Glen McLaughlin, David Campbell, and Richard Ginn will be=20 managing the fund. Costella Kirsch has over $150 million under management.= =20 =09=09http://www.costellakirsch.com =09=09 =09=09 =09=09 vw corrections=20 =09=09? =09=09Coremetrics =09=09 mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- A story in Friday's VentureWire on Coremet= rics=20 naming Scott Kauffman as CEO incorrectly stated the company had a round of= =20 layoffs in April due to a decreased demand for high-end consulting services= .=20 In fact, the layoffs were made to cut the company's burn rate and focus on= =20 high-end consulting, a growing sector for the company. =09=09 =09=09 =09=09In-Depth Systems =09=09 mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- An article in Friday's VentureWire about I= n-Depth=20 Systems' recent financing from Marathon Oil incorrectly stated that In-Dep= th=20 Systems received one seat on Marathon's board. Rather, as a result of the= =20 financing, Marathon was granted a seat on the In-Depth board. =09=09 =09=09 =09=09company index =09=09top =09=09 =09=09AccuMedia.com, Annuncio Software, Aurigin Systems, CombineNet, Combin= eNet,=20 Costella Kirsch, Escrow.com, Escrow.com, Geyser Networks, HandyLab, HandyLa= b,=20 Ikadega, Laser Diagnostic Technologies, Merlin Systems, Merlin Systems,=20 MobileIM, PlanetJam Media Group, RealTime Media, RealTime Media, RealTime= =20 Media, Redback Networks, Redback Networks, RiverDelta Networks, RiverDelta= =20 Networks, Saltmine, Surebridge, Surebridge, The Capital Markets Co., Topica= =20 =09=09 =09=09 =09=09Chain chain chain -- supply chain, demand chain, value chain. =09=09When it comes to doing business, companies just want to =09=09eliminate any loose ends that hinder the ability of suppliers, =09=09manufacturers, designers, customers and salespeople to =09=09smoothly work together. At Enterprise Outlook, you'll hear =09=09and see what the leading public and private companies are =09=09doing to string together that chain. =09=09 =09=09Scheduled to speak: Bryan Stolle of Agile Software, =09=09Greg Owens of Manugistics, and Phillip Merrick of =09=09webMethods =09=09 =09=09Register and reserve your place=20 today:http://www.enterpriseoutlook.com/register.asp =09=09 =09=09 =09=09 =09=09investor index =09=09top =09=09 =09=09Axxon Capital, Axxon Capital, Berkshires Capital Investors, Berkshire= s=20 Capital Investors, Compaq Computer, Compaq Computer, Primedia, Providence= =20 Equity Partners, Providence Equity Partners, Spectrum Equity Investors,=20 Spectrum Equity Investors, The Goldman Sachs Group, The Goldman Sachs Group =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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