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?=09VentureWire =09Wednesday, May 16, 2001=09=09? ?=09CONTENTS | COMPANIES | INVESTORS | ADVERTISE | TELL A FRIEND=09VentureW= ire Index =09=09'VentureWire =09=09today: 703.9 ? -0.27%=09? ? =09=09 =09=09 =09=09top stories =09=09 =09=09 =01=07 Buzzsaw.com Lays Off 30%, to Close on $20M Third Round =09=09 =01=07 Entertainment Site UGO Networks Acquires Rival Bla-Bla.com =09=09 =01=07 EYP Mission Gets $57.5M Round One to Spin Off from Einhorn =09=09 =01=07 Flatiron Moves in with J.P. Morgan Chase to Cool Burn Rate=20 =09=09 =09=09UPCOMING EVENTS =09=09Financial Services Outlook 2001 =09=09Robert Reynolds, COO of Fidelity Investments, to invest $350 million = in=20 Internet technology. Register to find out where! =09=09 =09=09TODAY'S FEATURES =09=09PSINet Ventures Winding Down =09=09By Matthew Sheahan =09=09A source familiar with the company told VentureWire that PSINet Ventu= res, the=20 venture capital unit of troubled Internet company PSINet, has seen its staf= f=20 drop from 15 to three, is not doing any new deals whatsoever, and is doing= =20 whatever it can to manage and liquefy its portfolio companies. more<< =09=09 =09=09 =09=09The Industry Standard =09=09THE INDUSTRY STANDARD provides a critical and irreverent =09=09look at how information and technology are changing the =09=09rules of business. Get the business intelligence you need =09=09to stay ahead of the competition. =09=09TRY THE INDUSTRY STANDARD -- RISK FREE. Get 4 FREE issues =09=09and find out why THE INDUSTRY STANDARD is the news magazine =09=09you can't lead without. Take advantage of this special =09=09offer at:http://secure.thestandard.com/subscribe/7JAT =09=09 =09=09 =09=09 =09=09Infineon Expands to Boston =09=09By Matthew Sheahan =09=09Infineon Ventures, the venture capital unit of German semiconductor= =20 manufacturer Infineon, has recently expanded its reach with the placement o= f=20 an investment professional in the Boston area, managing director Rudolph=20 Ohnesorge told VentureWire. more<< =09=09 =09=09Summit Partners to Pick Up the Pace=20 =09=09By Amanda Briggs =09=09Summit Partners, a late-stage venture firm with offices in Boston and= Palo=20 Alto, Calif., expects to pick up its investment pace later this year and is= =20 looking to do more deals in Western Europe, according to managing partner= =20 Bruce Evans. more<< =09=09 =09=09Labrador Capitalizing on Early-Stage Deals =09=09By Amanda Briggs =09=09Early-stage venture firm Labrador Ventures is looking to finish inves= ting its=20 current $90 million fund -- the firm's fourth -- sometime over the next six= =20 months, according to managing director Stuart Davidson. more<< =09=09 =09=09Intellamed Goes After First Venture Financing of $10 Million =09=09By Taran Provost =09=09Intellamed, a Bryan, Texas-based provider of online asset management= =20 solutions for the healthcare industry, is looking to raise a round of $10= =20 million, president and CEO David Hickson told VentureWire. more<< =09=09 =09=09 =09=09 =09=09 =09=09new money =09=09 =09=09 =01=07 KeepSmart Stays Ahead with $5.8 Million in First Round=20 =09=09=01=07 Broadband Developer VDSL Systems Raises $12.4 Million Round=20 =09=09=01=07 Creditek Receives $30M Investment from General Atlantic =09=09 =01=07 DVD Conversion Firm LifeClips Gets $12.2M Round Two =09=09 =01=07 Graphic Display Screen Firm Opsys Raises $11.2 Million =09=09 =01=07 Interregnum Invests in Two U.K. Software Companies =09=09 =01=07 Accounts Receivable Firm, Convergent Resources, Raises Round =09=09 =01=07 DigiPlex Raises $48 Million Equity, $35 Million Debt =09=09 =01=07 STSN Gets $66.5M of Series D Debt and Equity =09=09 =01=07 Tribune Media Services Takes Majority Stake in TVData=20 =09=09=01=07 Viator Closing $5M to $10M Series C Round in Next Two Weeks =09=09 =09=09 =09=09bad news =09=09 =09=09 =01=07 WorkingWoman.com Lays Off 63%; Looking for Buyers, Funding =09=09 =01=07 Metiom Files for Chapter 11 after Investors Back Out =09=09 =01=07 Idealab!'s eCRM Mybiz.com Goes Out of Business =09=09 =01=07 Communications Firm OnSite Lays Off Two-Thirds of Staff =09=09 =01=07 Streaming Media Tech Firm Eyecast Lays Off 50% of Workforce =09=09 =01=07 eLedger to Shut Down ASP Service on May 31 =09=09 =09=09 =09=09new products =09=09 =09=09 =01=07 Services Firm for Media KPE Launches Television Division =09=09 =01=07 Private Biz Network Software Firm Model N Launches =09=09 =01=07 Christianity.com Changes Name to Starwire =09=09 =01=07 XML Networking Firm DataPower Announces Launch =09=09 =01=07 Hi3G and Europolitan Vodaphone Form Mobile Telephony Firm =09=09 =01=07 The MBA Co. Launches =09=09 =09=09 =09=09m&a =09=09 =09=09 =01=07 Motient Acquires Rare Medium in Cash-and-Stock Deal =09=09 =01=07 XCare.net Buys E-Business Firm Confer Software =09=09 =01=07 Escalate Acquires Managize Technology in All-Stock Deal =09=09 =01=07 Qiva Acquires Supply-Chain Web Software Firm Capstan Systems =09=09 =01=07 BrainHeart Buys Bankrupt Mobile Internet Division of Linq =09=09 =01=07 EMS Technologies Acquires CI Wireless =09=09 =01=07 Parthus Acquires Chicory for $41.4M in Cash and Stock =09=09 =01=07 JAWZ Sells E-Business Unit to Rubicon for $323,000 =09=09 =09=09 =09=09new directors =09=09 =09=09 =01=07 CRM Firm Parago Chairman Resigns, Remains on Board =09=09 =01=07 Infrastructure Provider Eternal Systems Names New Director =09=09 =01=07 Concellera Adds Two New Board Members =09=09 =09=09 =09=09new people =09=09 =09=09 =01=07 Guru Appoints Former Spherion Head to Chairman and CEO =09=09 =01=07 Training Products Firm Cognitive Arts Appoints New CEO =09=09 =01=07 Online Digital Printing Firm Mimeo Appoints New CEO =09=09 =01=07 E-Commerce Firm Callbutton Names First President & CEO =09=09 =09=09 =09=09vc fund news =09=09 =09=09 =01=07 Invesco Closes $150M EuroMedia Fund as Part of $530M Pool=20 =09=09=01=07 PSINet Ventures Closing Shop and Liquefying Its Portfolio =09=09 =01=07 Schneider Electric Launches $44 Million Corporate VC Arm=20 =09=09=01=07 Venture Firm Axiomlab Raises $17.1 Million Second Round=20 =09=09=01=07 CalPERS Invests $10 Million in SVCV Fund 2 =09=09 =01=07 Friends Ivory & Sime Closes 3PC with $61 Million=20 =09=09 =09=09 =09=09vw corrections =09=09 =09=09 =01=07 ProfessorQ =09=09 =01=07 Ebrary =09=09 =09=09 TOP STORIES... NEW MONEY... BAD NEWS... NEW PRODUCTS... M&A... NEW= =20 DIRECTORS... NEW PEOPLE... VC FUND NEWS... VW CORRECTIONS =09=09 =09=09 =09=09top =09=09 =09=09 =09=09Around-the-clock global trading is almost here. =09=09New access to the reinsurance market is needed. =09=09Corporations must better manage their credit departments. =09=09 =09=09At Financial Services Outlook, you?ll meet the people =09=09running the companies that are taking these challenges =09=09head on. =09=09 =09=09Financial Services Outlook =09=09July 31 =09=09The Marriott World Trade Center =09=09 =09=09Register before June 19 and SAVE=20 $100:http://www.financialservicesoutlook.com/ =09=09 =09=09 =09=09 =09=09top stories =09=09? =09=09Buzzsaw.com Lays Off 30%, to Close on $20M Third Round =09=09 mail? top =09=09 =09=09 SAN FRANCISCO (VENTUREWIRE) -- Buzzsaw.com, a business-to-business= =20 e-commerce marketplace for the building design and construction industry,= =20 laid off 70 employees, or 30% of the company's staff, said chairman,=20 president, and CEO Carl Bass. The layoffs, which were across the board, wer= e=20 "highly recommended" by the company's investors in order to lower=20 Buzzsaw.com's burn rate. Some senior executives, including CFO Paul Farmer,= =20 were laid off. About 170 employees now remain at Buzzsaw.com. The company= =20 expects to close a $20 million round in the next few weeks. Mr. Bass=20 declined to name investors, but noted that existing investors are=20 participating and that a lead investor has been secured. Buzzsaw.com, which= =20 has raised $90 million to date, garnered a post-money valuation of over $30= 0=20 million in its $75 million second round last April. Due to market condition= s,=20 Mr. Bass expects the upcoming financing, which is expected to carry the=20 company to profitability, to be a down round. Acquisition by anoth! er=20 company is always a choice, he said, but Buzzsaw.com is not actively lookin= g=20 for such a deal. The company had revenues of over $5 million in 2000, and= =20 expects revenues to double this year, becoming cash-flow positive in=20 mid-2002. Buzzsaw.com will also focus its business on printing transactions= =20 and document sharing services. Autodesk, Bank of America, Crosspoint Ventur= e=20 Partners, Impact Ventures, Morgan Stanley Dean Witter Private Equity, and= =20 Real Estate Private Equity Groups have invested in Buzzsaw.com. =09=09http://www.buzzsaw.com =09=09 =09=09 =09=09Entertainment Site UGO Networks Acquires Rival Bla-Bla.com =09=09 mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- Bla-Bla.com, an online portal for independ= ent=20 content, said that it has been acquired by rival UGO (UnderGround Online)= =20 Networks, for an undisclosed amount. Bla-Bla.com's CEO Michael O'Hara said= =20 that the two companies had been "brainstorming" for nearly five months. Ove= r=20 the past six months, both UGO and Bla-Bla.com have each announced layoffs o= f=20 about 30% of their staff, with UGO eliminating 40 people and Bla-Bla.com=20 cutting 16 people. UGO is expected to "pick and choose" from the remaining= =20 employees at Bla-Bla.com to decide whom it wants to keep. Mr. O'Hara said= =20 that he would not be involved with the combined company and is moving on to= =20 other business opportunities. UGO has raised a total of $82 million in=20 funding and expects to break even within one year. The company is backed by= =20 GRP, Gryphon Holdings III, J. & W. Seligman, and Vivendi, as well as J.P.= =20 Morgan Chase & Co. Entertainment Group, Liberty Digital, and LiveWire.=20 Bla-Bla.com, which raised $7.65 millio! n in seed funding in September 2000= =20 and an undisclosed amount two months later, is funded by Hudson Venture=20 Partners, Liberty View Equity Partners, SBIC, Silicon Alley Venture Partner= s,=20 Stonehenge Capital, and Youngtree Partners. As part of the overall=20 transaction, some of Bla-Bla.com's investors, including Liberty View and=20 Hudson Partners, will invest an undisclosed amount in UGO Networks. =20 =09=09http://www.bla-bla.com =09=09http://www.ugo.com =09=09 =09=09 =09=09EYP Mission Gets $57.5M Round One to Spin Off from Einhorn =09=09 mail? top =09=09 =09=09 BOSTON (VENTUREWIRE) -- TA Associates, a private equity firm, said i= t led a=20 $57.5 million first round for EYP Mission Critical Facilities, which provid= es=20 consulting, design, facilities operations management, and information=20 technology services to financial, telecommunications, and computer/Internet= =20 corporate clients. Some of the investment was used to spin off EYP from its= =20 parent company, Einhorn Yaffee Prescott Architecture & Engineering, as well= =20 as to provide the company with growth capital. The funding also included a= =20 minority investment from Heller Financial, TA principal Michael Wilson said= .=20 Mr. Wilson also said that the company is planning a number of acquisitions,= =20 the first of which will close in two months. Mr. Wilson, along with Roger= =20 Kafka of TA, will take a seat on EYP's board of directors. TA Associates=20 manages over $5 billion and has invested in over 330 companies to date. =20 =09=09http://www.eypmissioncritical.com =09=09 =09=09 =09=09Flatiron Moves in with J.P. Morgan Chase to Cool Burn Rate=20 =09=09mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- Flatiron Partners, a venture capital firm,= said it=20 would vacate its Silicon Alley offices in order to save millions on rent. T= he=20 firm will move to the offices of its only limited partner J.P. Morgan Chase= &=20 Co. Flatiron said that there would be no other changes in the firm's=20 financial structure. Last month Flatiron, which participated in more than 4= 0=20 deals last year, said it may be raising its own fund. The firm still has=20 about $230 million of the more than $500 million committed last year by Cha= se=20 Capital Partners, which merged to form JP Morgan Partners in January. Two o= f=20 Flatiron's portfolio companies, Kozmo.com, which operated a one-hour delive= ry=20 service, and online new media company Urban Box Office Network, have closed= =20 down. Flatiron recently said it is focused on securing follow-on financing= =20 for its 35 portfolio companies. =20 =09=09http://www.flatironpartners.com =09=09 =09=09 =09=09new money =09=09? =09=09KeepSmart Stays Ahead with $5.8 Million in First Round=20 =09=09mail? top =09=09 =09=09 HAWTHORNE, N.Y. (VENTUREWIRE) -- KeepSmart, a provider of online an= d=20 offline continuing education services for professionals, said it has closed= a=20 $5.8 million first round led by Deutsche Bank's Asset Management Group, wit= h=20 additional participation from individual investors. The company said the=20 financing would be used for sales and marketing. KeepSmart, founded in 1981= ,=20 said it expects to reach profitability by the first quarter of 2002.=20 =09=09http://www.keepsmart.com =09=09 =09=09 =09=09Broadband Developer VDSL Systems Raises $12.4 Million Round=20 =09=09mail? top =09=09 =09=09 DENVER (VENTUREWIRE) -- VDSL Systems, which develops broadband techn= ologies=20 enabling very high speed digital subscriber line service distribution over= =20 copper phone lines, said it raised $12.4 million in its second round of=20 funding. The round was led by UBS Capital and included investments from 3i,= =20 Kennet Capital, and ACR, the Finnish investment company for the entrepreneu= r=20 Tatu Ylonen, founder of SSH Communications Security. VDSL systems said it= =20 will use the capital for sales and marketing efforts and ongoing product=20 development.=20 =09=09http://www.vdslsystems.com =09=09 =09=09 =09=09Creditek Receives $30M Investment from General Atlantic =09=09 mail? top =09=09 =09=09 PARSIPPANY, N.J. (VENTUREWIRE) -- Creditek, an order-to-cash cycle= =20 outsourcing and enterprise receivables management company, said it has=20 received a $30 million investment from General Atlantic Partners, a private= =20 equity firm that focuses on IT and telecommunications businesses. The compa= ny=20 said the money would be used to develop technology and for operating=20 infrastructure. As a result of the funding, Mark Dzialga and Cliff Robbins,= =20 partners of General Atlantic, will become the fifth and sixth members of th= e=20 board. Additional members of the board are chairman, president, CEO, and=20 founder John Metzger; Ernest Jacquet, managing partner of Parthenon; and=20 Samantha Trotman, general partner of Parthenon Capital. The company is=20 currently looking to add an outside person to its board, a company=20 spokesperson said. Parthenon is also an investor in Creditek.=20 =09=09http://www.creditek.com =09=09 =09=09 =09=09DVD Conversion Firm LifeClips Gets $12.2M Round Two =09=09 mail? top =09=09 =09=09 ACTON, Mass. (VENTUREWIRE) -- LifeClips, a provider of videotape-to-= DVD=20 conversion services, announced that it has secured $12.2 million in second= =20 round financing led by previous investor St. Paul Venture Capital, with=20 participation from unnamed individuals. The company plans to use the new=20 funds to expand its test market and to roll out the service on a national= =20 level. Post-money, the company is valued at $25.6 million. LifeClips=20 anticipates break-even by the fourth quarter of 2002. With this round, ther= e=20 were no additions to the LifeClips's seven-member board, which includes Bri= an=20 Jacobs of St. Paul Venture Capital. The LifeClips service is marketed via= =20 offline film developers as well as on the company Web site. In November 199= 9=20 the company raised $4.3 million from St. Paul Venture Capital. =09=09http://www.lifeclips.com =09=09 =09=09 =09=09Graphic Display Screen Firm Opsys Raises $11.2 Million =09=09 mail? top =09=09 =09=09 OXFORD, England (VENTUREWIRE) -- Opsys, which develops flat graphic = display=20 screens, said it has received a GBP 8 million ($11.2 million) round of=20 funding led by 3i and Quester. 3i will invest $4.2 million while Quester's= =20 investment totals $3.5 million. Other backers in this round are Japanese=20 venture capital group NIF and international investment bank Dresdner=20 Kleinwort Wasserstein. The company also said it has named professor John=20 Baits, former corporate director of technology for Cable & Wireless, to vic= e=20 chairman, and David Martin, former member of IBM's management team, as a=20 director. The company said it would use the capital to fund its new expansi= on=20 program, which includes a new manufacturing and research facility near=20 Silicon Valley, Calif., expansion of its U.K. research facility, and=20 licensing technology from Eastman Kodak. Opsys said that it plans to raise = a=20 future round of funding. =20 =09=09http://www.opsysdisplays.com =09=09 =09=09 =09=09Interregnum Invests in Two U.K. Software Companies =09=09 mail? top =09=09 =09=09 LONDON (VENTUREWIRE) -- Interregnum, an IT investment and advisory c= ompany,=20 announced that it has invested GBP 1 million ($1.4 million) in the $2.8=20 million first round of Respond, a customer retention and loyalty software a= nd=20 services vendor, and also invested $1.4 million in Link Software, a develop= er=20 of Web-based collaborative software. 3i also invested with Interregnum in= =20 Respond's first round. Respond said it would use the funding to expand its= =20 international operations and product range. Link said it plans to use the= =20 funding for research and development and to expand into the U.S. With a=20 portfolio of over 30 companies, Interregnum is headquartered in London and= =20 has offices in San Francisco and New York.=20 =09=09http://www.elinksuite.com =09=09http://www.respond-inc.com =09=09 =09=09 =09=09Accounts Receivable Firm, Convergent Resources, Raises Round =09=09 mail? top =09=09 =09=09 ATLANTA (VENTUREWIRE) -- Convergent Resources, which provides accoun= ts=20 receivable management company for consumer, commercial, and healthcare=20 collection services, said it raised an undisclosed first round from=20 BancBoston Capital. Atlanta-based Cravey, Green and Wahlen, a private equit= y=20 firm, hold a majority stake in Convergent Resources. Convergent said it wou= ld=20 use the capital for future acquisition opportunities. As a result of the=20 investment BancBoston Capital will take a seat on the Convergent Resources= =20 board of directors. Telephone 770-730-0015. =09=09 =09=09 =09=09DigiPlex Raises $48 Million Equity, $35 Million Debt =09=09 mail? top =09=09 =09=09 LONDON (VENTUREWIRE) -- DigiPlex, a European operator of carrier-neu= tral=20 colocation facilities, said it has received EUR 55 million ($48 million) in= =20 equity funding from previous investors the Carlyle Group and Providence=20 Equity Partners. The company also said it has drawn $35 million of debt fro= m=20 a credit facility arranged by Deutsche Bank, Goldman Sachs, and CIBC. The= =20 company said it would use the funding for the construction of its facilitie= s=20 in Frankfurt, Geneva, London, Milan, Munich, and Oslo. DigiPlex offers a=20 range of carrier-neutral colocation, facility outfitting, and service optio= ns=20 to telecom operators and service providers. DigiPlex facilities provide=20 connectivity to fiber-optic networks and voice and data networking equipmen= t=20 for its customers. The company has raised $239 million in equity and $96.6= =20 million in debt to date. Other investors include Carrier1 and iaxis. =20 =09=09http://www.digiplex.com =09=09 =09=09 =09=09STSN Gets $66.5M of Series D Debt and Equity =09=09 mail? top =09=09 =09=09 SALT LAKE CITY (VENTUREWIRE) -- STSN, which provides high-speed Inte= rnet=20 access and specialized broadband services to hotels and conferencing center= s,=20 said it has secured $66.5 million in debt and equity in its Series D round = of=20 funding led by new investors Siemens and On Command. The round also include= s=20 previous investors APV Technology Partners, Intel, Marriott International,= =20 ThomVest Holdings, and Vantage Point Venture Partners. The debt financing w= as=20 provided by GATX. The company said it would use the funding to continue to= =20 increase its penetration of North America, Europe and the Asia Pacific=20 region. Edward Grybek of Siemens Project Ventures (SPV) will join STSN's=20 board of directors. STSN raised over $111 million in venture capital in two= =20 previous rounds. =09=09http://www.stsn.com =09=09 =09=09 =09=09Tribune Media Services Takes Majority Stake in TVData=20 =09=09mail? top =09=09 =09=09 CHICAGO (VENTUREWIRE) -- Tribune Media Services, which provides tele= vision=20 and film information, announced that it has made an undisclosed investment = in=20 TVData Technologies in exchange for a majority interest in the company.=20 TVData Technologies collects and distributes listing information and=20 editorial material to multiple media companies. TVData plans to use the fun= ds=20 to expand customer service in the U.S. as well as in international markets.= =20 Previously, TVData has secured funding from undisclosed individual=20 investors.Tribune Media Services is a subsidiary of Chicago-based media=20 company Tribune. =09=09http://www.tvdata.com =09=09 =09=09 =09=09Viator Closing $5M to $10M Series C Round in Next Two Weeks =09=09 mail? top =09=09 =09=09 SAN FRANCISCO (VENTUREWIRE) -- Viator, a provider of travel destinat= ion=20 products, technology, and distribution services, said it was closing a $5= =20 million to $10 million Series C round within the next two weeks. Viator sai= d=20 that Travelocity and Worldspan are participating in the round. Viator said= =20 that the funding is its first institutional round from U.S. investors. Viat= or=20 also announced a strategic partnership with Travelocity whereby customers= =20 will be able to book tours and attractions for destination cities on=20 Travelocity's site using Viator's technology. Viator has also received=20 funding from the Australia Technology Group, Technology Venture Partners, a= nd=20 individual investors.=20 =09=09http://www.viator.com =09=09 =09=09 =09=09bad news =09=09? =09=09WorkingWoman.com Lays Off 63%; Looking for Buyers, Funding =09=09 mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- WorkingWoman.com, a marketplace and resou= rce for=20 professional and entrepreneurial businesswomen, said it has laid of 14=20 people, approximately 63% of its staff. A spokesperson for the company said= =20 that the layoffs are a direct response to the difficult market conditions.= =20 "The environment is simply not conducive to building Web sites," the=20 spokesperson said. The spokesperson said that the company is struggling=20 financially and has hired DeSilva & Phillips, an investment banking firm, t= o=20 find potential buyers. DeSilva is also exploring the possibility of=20 additional financing for WorkingWoman.com. WorkingWoman.com has raised $32= =20 million in funding from two rounds of funding. Its investors include=20 BlackDiamond Ventures, Compaq Computer, Jefferies & Co., New York City=20 Investment Fund, Office Depot, PurchasePro.com, RWI Group, Sand Hill=20 Financial, Sycamore Ventures, and Telos Venture Partners. Carol Bartz, CEO = of=20 Autodesk; Larry Ellison, CEO of Oracle; and Clifford Sobel, chairman o! f= =20 Net2Phone, have also invested in WorkingWoman.com. =09=09http://www.workingwoman.com =09=09 =09=09 =09=09Metiom Files for Chapter 11 after Investors Back Out =09=09 mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- Metiom, a business-to-business e-commerce= =20 infrastructure provider for online purchasing, said that it has filed for= =20 Chapter 11 bankruptcy. A Metiom spokesperson said that, due to market=20 conditions, the company's investors have decided not to invest the remainin= g=20 two tranches of Metiom's $45 million third round announced in January, of= =20 which the company had received $15 million. Metiom had no comment about=20 layoffs but said it was "restructuring" and considering potential buyers. T= he=20 company said it expects the restructuring to be completed within the next 1= 20=20 days. Metiom is backed by Forstmann Little & Co. and Summit Enterprises. = =20 =09=09http://www.metiom.com =09=09 =09=09 =09=09Idealab!'s eCRM Mybiz.com Goes Out of Business =09=09 mail? top =09=09 =09=09 PALO ALTO, Calif. (VENTUREWIRE) -- Mybiz.com, which provided eCRM se= rvices=20 for small businesses over the Web, has shut down, according to founder Bill= =20 Onderdonk. The idealab!-backed company had anticipated venture funding, but= =20 was unable to close $3 million in Series A. Established in September 2000,= =20 mybiz.com employed 12 and expected $500,000 in profits in 2001. Mybiz.com h= ad=20 also held talks to be acquired, but could not close any deals. For the past= =20 month, approximately six former mybiz.com employees have been maintaining t= he=20 Web site, which will be brought down this Friday. Mybiz.com may be acquired= =20 by some of its former employees. Acquisition of the company or of the=20 company's assets remains possible, said Mr. Onderdonk. =09=09http://www.mybiz.com =09=09 =09=09 =09=09Communications Firm OnSite Lays Off Two-Thirds of Staff =09=09 mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- OnSite Access, an integrated communication= s=20 provider that serves small and medium-sized business customers within=20 multi-tenant commercial office buildings, said it has laid off approximatel= y=20 two-thirds of its 240 member staff -- about 158 employees. The company said= =20 that the cuts were made across the board. A company spokesperson attributed= =20 the layoffs to a lack of available capital rather than problems with the=20 company's business model. The spokesperson said the company is working on= =20 financial alternatives including seeking more venture funding. While OnSite= =20 Access will continue to serve its existing customers, the spokesperson said= =20 that the company would not seek new customers until its financial condition= =20 stabilizes. OnSite Access pulled its IPO last November citing current marke= t=20 conditions. The company's backers include AT&T Ventures, Crosspoint Venture= =20 Partners, Frontline Capital Group, J.P. Morgan Capital, Microsoft, Spectrum= =20 Equity Investors, and Veritech! Ventures. =09=09http://www.onsiteaccess.com =09=09 =09=09 =09=09Streaming Media Tech Firm Eyecast Lays Off 50% of Workforce =09=09 mail? top =09=09 =09=09 ARLINGTON, Va. (VENTUREWIRE) -- Eyecast, a, developer of technolog= y that=20 enables Web-based live video access to remote sites, said it has cut=20 approximately 50% of its 65 member staff. Board member Pierre Eskonda said= =20 Eyecast is realigning its business plan due to current market conditions. T= he=20 company closed a $30 million second round in April 2000 with investments fr= om=20 ComVentures, New Enterprise Associates, and New Horizons Venture Capital.= =20 Eyecast has also developed Web-based remote camera control, digital off-sit= e=20 storage of video, and archived video access. Telephone 703-375-6900. =09=09 =09=09 =09=09eLedger to Shut Down ASP Service on May 31 =09=09 mail? top =09=09 =09=09 TOLEDO, Ohio (VENTUREWIRE) -- eLedger, which develops Web-based acco= unting=20 systems for small businesses, said it is shutting down its ASP service=20 effective May 31, 2001. The company laid off 30 people in April without=20 severance packages, leaving the company with two employees. It will sell=20 licenses to its source code on CD beginning May 17. The CDs will contain it= s=20 eLedger 2.2, eLedger ASP Server, and eLedger Business Manager products. The= =20 company said that the announcement comes after it was unable to raise=20 additional capital. It had approached venture capital firms at the end of= =20 last year, but was unable to find further funding. President and CEO Lee=20 Mellinger founded eLedger in January 1999. The company raised a total of $3= .8=20 million from individual investor Gary Peat, a partner at Council Ventures,= =20 and Lexware.=20 =09=09http://www.eledger.com =09=09 =09=09 =09=09new products =09=09? =09=09Services Firm for Media KPE Launches Television Division =09=09 mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- KPE, a provider of digital services, incl= uding=20 integrated design and creative services, Web site development, and original= =20 content creation for media and entertainment companies, said it launched a= =20 new division, KPE Television, which will offer clients broadcast creative a= nd=20 production services for on-air branding and promotional initiatives. Parent= =20 company KPE, which operates a venture capital division as well, has also ma= de=20 a few layoffs in most of its other divisions including its technology and= =20 creative units. "There were overlaps and we felt we needed to do a little= =20 restructuring to focus on new skill sets," said Rob Argento, KPE's vice=20 president of corporate communications. Mr. Argento would not disclose the= =20 specific number of layoffs, only saying that the number was low. The new=20 television division will also offer enhanced and interactive television=20 services. Win Peniston, who was previously senior vice president and managi= ng=20 director of Pittard Sullivan's New! York offices, will lead the new divisio= n=20 as managing director and has been named vice president of KPE. Mr. Peniston= =20 said that, besides on-air initiatives including graphics and image spots, K= PE=20 Television will merge online strategy and technology services into its=20 services. The division's clients include ABC Sports, Discovery Canada, and= =20 Discovery Health. Mr. Penniston said that the KPE Television's four-person= =20 staff will grow rapidly and at least double in size by the end of the year.= =20 KPE raised $21.5 million in November 1999 from a group of investors includi= ng=20 Clarion Capital Partners, Grey Advertising, Wasserstein Adelson Ventures, a= s=20 well as several individual investors.=20 =09=09http://www.kpe.com =09=09 =09=09 =09=09Private Biz Network Software Firm Model N Launches =09=09 mail? top =09=09 =09=09 SAN FRANCISCO (VENTUREWIRE) -- Model N, which provides inter-enterpr= ise=20 software to create private business networks, announced the launch of its= =20 first product, Private Business Network Platform software. The new product= =20 enables bricks-and-mortar companies to increase efficiency and reduce cost= =20 for inter-enterprise business relationships. The company also launched this= =20 week. Model N's board consists of James Breyer, managing partner of Accel= =20 Partners; Robert Gunderson Jr., co-founder of Gunderson Dettmer LLP; and=20 chairman, CEO, and founder Zack Rinat. Model N is backed by Accel Partners= =20 and Accel-KKR.=20 =09=09http://www.modeln.com =09=09 =09=09 =09=09Christianity.com Changes Name to Starwire =09=09 mail? top =09=09 =09=09 HAYWARD, Calif. (VENTUREWIRE) -- Christianity.com, which provides o= nline=20 content as well as online services and tools to churches and ministries, sa= id=20 it has changed its name to Starwire. The company said the new name more=20 accurately represents its service offering. Starwire is backed by CBN; Rege= nt=20 University, a Virginia Beach, Va.-based Christian graduate school founded b= y=20 Pat Robertson; Sequoia Capital; and an undisclosed private foundation. The= =20 company has also received funding from Comdisco.=20 =09=09http://www.starwire.com =09=09 =09=09 =09=09XML Networking Firm DataPower Announces Launch =09=09 mail? top =09=09 =09=09 CAMBRIDGE, Mass. (VENTUREWIRE) -- DataPower, which provides advanced= =20 XML-aware networking technology to enhance XML performance and security,=20 announced that it has launched. The company was founded by its CTO, Eugene= =20 Kuznetsov. DataPower, which raised $1.1 million in its first round, is fund= ed=20 by Bessemer Venture Partners, euclid technology ventures, and Latona=20 Associates. The company said that it plans to raise an addition $8 million = to=20 $10 million within 90 days. With this funding, DataPower said it would buil= d=20 out its sales and marketing force, and expand its engineering and=20 infrastructure capabilities. The company said it plans to grow its workforc= e=20 from 12 to 50 by the end of the year. DataPower's technology enables the=20 delivery of wire-speed XML processing and intelligent routing of XML=20 documents from a secure network device. DataPower, which is also considerin= g=20 opportunities in Japan, expects to be profitable by the end of 2002. =09=09http://www.datapower.com =09=09 =09=09 =09=09Hi3G and Europolitan Vodaphone Form Mobile Telephony Firm =09=09 mail? top =09=09 =09=09 STOCKHOLM, Sweden (VENTUREWIRE) -- Telecommunications firm Hi3G and = publicly=20 traded Europolitan Vodafone have formed 3G Infrastructure Services, a joint= ly=20 owned company that will provide Hi3G and Europolitan with 3G mobile telepho= ny=20 infrastructure. Both Hi3G and Europolitan own half of 3G Infrastructure, an= d=20 have made investments in the company. Based in Stockholm, 3G will operate i= n=20 areas outside of Goteborg, Malmo, and Stockholm. Hutchison Whampoa has a 60= %=20 stake in Hi3G, and Sweden's Investor AB holds the remaining 40%. =09=09http://www.europolitan.se =09=09http://www.hi3gaccess.se =09=09 =09=09 =09=09The MBA Co. Launches =09=09 mail? top =09=09 =09=09 WASHINGTON (VENTUREWIRE) -- The MBA Co., an online and offline busin= ess club=20 for graduates of leading MBA programs, said that it has officially launched= .=20 The company will offer a number of networking services ranging from golf=20 tours, career information, and online reference materials. The company is= =20 backed by individual investors.=20 =09=09http://www.thembacompany.com =09=09 =09=09 =09=09m&a =09=09? =09=09Motient Acquires Rare Medium in Cash-and-Stock Deal =09=09 mail? top =09=09 =09=09 RESTON, Va. (VENTUREWIRE) -- Motient, a publicly traded owner and op= erator=20 of an integrated terrestrial/satellite network, said it has signed an=20 agreement to acquire Rare Medium Group, a publicly traded provider of=20 incubator and professional services for e-business initiatives. The=20 acquisition will include a combination of 9 million shares of Motient=20 subsidiary XM Satellite Radio's stock, worth approximateley $128 million, = =20 newly issued Motient stock, and $13 million in cash. Under the agreemnet ea= ch=20 share of Rare Medium's outstanding stock will be exchanged for one-tenth of= a=20 share of a new class of Motient preferred stock. Motient common stock close= d=20 at $1.90 a share yesterday. In early April Rare Medium and Motient announce= d=20 that they had signed an agreement under which Rare Medium provided Motient= =20 with $25 million by purchasing $25 million of exchangeable notes of Motient= ,=20 with another $25 million available.The previously announced $25 million loa= n=20 to Motient will be absorbed by the combin! ed company upon closing of the= =20 transaction, expected in the third quarter of 2001. At the closing, Motient= =20 will repay approximately $34 million of its outstanding bank obligations.= =20 Rare Medium recently laid off 170 employees. The merged company will double= =20 Motient's current 500 member staff. Motient was advised by J.P. Morgan=20 Securities. A Motient spokesperson said that the company has not decided wh= at=20 position Glenn Meyers, chairman of Rare Medium Group, will take with the=20 newly merged company. =20 =09=09http://www.motient.com =09=09http://www.raremedium.com =09=09 =09=09 =09=09XCare.net Buys E-Business Firm Confer Software =09=09 mail? top =09=09 =09=09 ENGLEWOOD, Colo. (VENTUREWIRE) -- Publicly traded XCare.net, a provi= der of=20 e-business technology, announced that it has agreed to acquire Confer=20 Software, a developer of e-business process management systems. XCare.net= =20 will acquire all outstanding capital stock of Confer for 595,000 shares of= =20 XCare.net common stock, worth approximately $4.5 million, and $450,000 in= =20 cash. As a result of this transaction, Ann Ting, president and COO of Confe= r=20 Software, will join XCare.net as CTO. An XCare.net representative said that= =20 the company would be retaining an undisclosed number of Confer Software=20 employees. The Confer headquarters will remain an R&D site for XCare.net.= =20 Confer Software is backed by CIBC Oppenheimer First Consulting Group, Frazi= er=20 & Co., JC Bradford, LiveOak Equity Partners, Matria Healthcare, Mayfield, R= ho=20 Management, Robertson Stephens, and Salix Ventures. =09=09http://www.confer.com =09=09http://www.xcare.net =09=09 =09=09 =09=09Escalate Acquires Managize Technology in All-Stock Deal =09=09 mail? top =09=09 =09=09 REDWOOD SHORES, Calif. (VENTUREWIRE) -- Escalate, which provides ent= erprise=20 e-commerce applications for integrated selling, said it has acquired the co= re=20 technology and assets of Managize, a supply-chain management and visibility= =20 application technology company, in an all-stock deal. Full terms of the=20 transaction were not disclosed. According to an Escalate spokesperson,=20 Managize was approached about the sale when it was preparing to shut its=20 doors as a result of inadequate funding. However, Crescendo Ventures, an=20 investor in Managize, stressed that the company was not going out of=20 business, even though it had laid off 15 people -- a majority of its staff = --=20 in April. Escalate is backed by Accel Partners, the Barksdale Group, Charte= r=20 Growth Capital, and Norwest Venture Partners. It employs 135 people and has= =20 offices in Chicago, New York, and Redwood Shores, Calif. Managize raised=20 approximately $8 million in its Series A, its only round. =09=09http://www.escalate.com =09=09 =09=09 =09=09Qiva Acquires Supply-Chain Web Software Firm Capstan Systems =09=09 mail? top =09=09 =09=09 SAN FRANCISCO (VENTUREWIRE) -- Qiva, which provides global logistics= and=20 transportation management applications, said that it expects to acquire San= =20 Francisco-based Capstan Systems, a provider of Web applications for global= =20 supply-chain execution, within 45 to 60 days for an undisclosed amount. Qiv= a=20 said that no layoffs or office closings are planned. Qiva was founded in 19= 89=20 and has 195 employees in offices in San Francisco, Australia, France,=20 Malaysia, and the U.K. It is backed by Aurora Funds, Bessemer Venture=20 Partners, Net Market Partners, and the Valent Group. Capstan is backed by= =20 Bechtel, Celestica, Craig Walker, FG II Ventures, i2 Technologies, Jafco=20 Ventures, Orchid Asia Holdings, and Sterling Payot Co. Founded in 1998,=20 Capstan employs 51 people.=20 =09=09http://www.capstan.com =09=09http://www.qiva.com =09=09 =09=09 =09=09BrainHeart Buys Bankrupt Mobile Internet Division of Linq =09=09 mail? top =09=09 =09=09 STOCKHOLM, Sweden (VENTUREWIRE) -- BrainHeart Capital, a venture fir= m=20 focused on the wireless IT industry in Scandinavia, said it bought the mobi= le=20 Internet division of Linq, an IT company that filed for bankruptcy in April= .=20 Financial details of the all-cash transaction were not disclosed. BrainHear= t=20 said the acquired division would have a new name by next week and that the= =20 company was expected to be profitable by the end of the year. Linq's founde= rs=20 Jan Morath and Mikael Mandahl will continue to work at the acquired divisio= n.=20 Linq had raised $36.8 million from Emerging Technology, TekCapital, and six= =20 Swedish pension funds. BrainHeart has $210 million in assets under=20 management.=20 =09=09http://www.brainheart.com =09=09 =09=09 =09=09EMS Technologies Acquires CI Wireless =09=09 mail? top =09=09 =09=09 ATLANTA (VENTUREWIRE) -- EMS Technologies, a publicly traded company= that=20 designs and manufactures wireless and satellite applications, said that it= =20 has acquired CI Wireless, a supplier of repeaters and other wireless signal= =20 distribution products. Terms of the deal were not disclosed. CI Wireless wi= ll=20 relocate to EMS's Atlanta facilities, where its 17 employees have been=20 offered positions. The transaction gives EMS Wireless, a division of EMS=20 Technologies, two new product areas, which are extended indoor RF coverage= =20 and outdoor repeaters. Investissements Novacap invested in CI Wireless's on= ly=20 round of funding. The company was advised for this deal by Dallas-based law= =20 firm Munsch Hardt Kopf Harr.=20 =09=09http://www.ciwireless.com =09=09http://www.ems-t.com =09=09 =09=09 =09=09Parthus Acquires Chicory for $41.4M in Cash and Stock =09=09 mail? top =09=09 =09=09 DUBLIN (VENTUREWIRE) -- Parthus Technologies, a publicly traded comp= any that=20 provides platform-level semiconductor intellectual property, said that it h= as=20 acquired Austin-based Chicory Systems, which provides semiconductor=20 intellectual property, for a total of $41.4 million, including $11.7 millio= n=20 in cash and 22.6 million in ordinary shares. An additional 20.5 million=20 ordinary shares may also be issued based upon achievement of certain=20 performance targets. None of Chicory Systems' 26 employees will be laid off= =20 and no offices will close. Chicory was advised on this deal by the Austin= =20 branch of San Jose-based law firm Brobeck. Founded in October 1999, Chicory= =20 raised $5.3 million through two rounds from Convergent Group and=20 individuals. =20 =09=09http://www.chicorysystems.com =09=09http://www.parthus.com =09=09 =09=09 =09=09JAWZ Sells E-Business Unit to Rubicon for $323,000 =09=09 mail? top =09=09 =09=09 CALGARY, Canada (VENTUREWIRE) -- JAWZ, a publicly traded provider of= secure=20 information management products, said it sold its e-business division to th= e=20 division's management and the Rubicon Investment Group, a newly formed=20 merchant bank focusing on private equity buy-outs and public market=20 investments, for CAD 500,000 ($323,000) in cash. The new company will be=20 renamed Centient Solutions and will provide e-business application services= =20 for business-to-business and business-to-customer companies. Rubicon founde= rs=20 Raghu Kilambi and Greg Nuttall hold two seats on Centient's four-member boa= rd=20 of directors. Centient said it expects to be profitable this quarter.=20 =09=09http://www.centientsolutions.com =09=09 =09=09 =09=09new directors =09=09? =09=09CRM Firm Parago Chairman Resigns, Remains on Board =09=09 mail? top =09=09 =09=09 DALLAS (VENTUREWIRE) -- Parago, an Internet-based CRM company focusi= ng on=20 promotional management, said that Steve Solomon has resigned from his=20 position as chairman of the company in order to spend more time in his CEO= =20 position for CT Holdings, Parago's parent company. Mr. Solomon, who is also= =20 the founder of Parago, will remain on its nine-member board. Although a=20 replacement chairman has not yet been named, Parago's operating duties will= =20 be assumed by the company's president and CEO Ken Johnsen. Investors in=20 Parago include Dain Rauscher Wessels Investors, Seaboard Ventures, TH=20 Lee.Putnam Internet Partners, and Watershed Capital.=20 =09=09http://www.ct-holdings.com =09=09http://www.parago.com =09=09 =09=09 =09=09Infrastructure Provider Eternal Systems Names New Director =09=09 mail? top =09=09 =09=09 SANTA BARBARA, Calif. (VENTUREWIRE) -- Eternal Systems, a provider o= f=20 software infrastructure technology for the embedded and enterprise markets,= =20 announced the appointment of Charles Perrell to its board of directors. Mr.= =20 Perrell, a co-founder of Network Appliance, will be granted the fourth seat= =20 on the board, which also includes Joseph Marks and Joel Balbien of Smart=20 Technlogy Ventures. In May 2000 Eternal Systems raised $7 million in Series= A=20 financing from Smart Technlogy Ventures. =09=09http://www.eternal-systems.com =09=09 =09=09 =09=09Concellera Adds Two New Board Members =09=09 mail? top =09=09 =09=09 MALVERN, Pa. (VENTUREWIRE) -- Concellera Software, a software techno= logy=20 firm for Internet marketplaces, has announced two new board members. Jeremy= =20 P. Coote, president of eCal, and Bruce E. Terker, a co-founder of Geewax=20 Terker, have been granted the third and fourth seats on the company's board= .=20 Also on the board is Daniel Gardner, a partner of Lancaster Investment=20 Partners. To date, Concellera has received $4 million in two rounds from=20 individual investors who hold a 45% stake in the firm. =09=09http://www.concellera.com =09=09 =09=09 =09=09new people =09=09? =09=09Guru Appoints Former Spherion Head to Chairman and CEO =09=09 mail? top =09=09 =09=09 SAN FRANCISCO (VENTUREWIRE) -- Guru, which operates a career Web sit= e for=20 independent professionals, said it has appointed Ray Marcy to the position = of=20 chairman and CEO. Mr. Marcy was most recently chairman and CEO of publicly= =20 traded information technology provider Spherion. He replaces Guru's foundin= g=20 co-CEOs Jon and James Slavet, who will remain with the company. To date, Gu= ru=20 has raised $63 million in financing from investors including American=20 Express, August Capital, CS First Boston, Greylock, Investor AB, Texas=20 Pacific Group, and WR Hambrecht. =09=09http://www.guru.com =09=09 =09=09 =09=09Training Products Firm Cognitive Arts Appoints New CEO =09=09 mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- Cognitive Arts, a developer of Internet-ba= sed=20 products and services for educational and corporate training, said it has= =20 appointed Robert C. Daugherty as CEO. Mr. Daugherty replaces Russell C.=20 White, who has left the company to pursue other interests. Prior to joining= =20 Cognitive Arts, Mr. Daugherty served as president and COO of inaQuest.com, = a=20 provider of commercial commercial printing software until its July 2000=20 merger with ProForma. He also joins as the eighth director on the company'= s=20 board, which includes Rob Bernstein of Leeds Weld, Brian Friedman of FS=20 Private investments, and Elliot Royce of GE Equity. To date, the company ha= s=20 raised $33 million in three rounds of financing. Backers include Catterton= =20 Partners, FS Private investments, GE Equity, Leeds Equity Partners, and=20 Regent Capital. =09=09http://www.cognitivearts.com =09=09 =09=09 =09=09Online Digital Printing Firm Mimeo Appoints New CEO =09=09 mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- Mimeo, which provides Internet-based digit= al=20 printing services for the production and delivery of business documents,=20 announced the appointment of John F. Lyons as its new CEO. Mr. Lyons replac= es=20 founder Jeff Stewart, who will serve as chief strategist and will remain on= =20 the company's board of directors. Prior to joining Mimeo, Mr. Lyons served = as=20 entrepreneur-in-residence at Impact Venture Partners. He joins as the fourt= h=20 member of the board, which includes Ross Goldstein, managing partner of=20 Draper Fisher Jurvetson Gotham. In February 2000 Mimeo raised $21 million i= n=20 a first round of funding. Investors include Draper Fisher Jurvetson Gotham,= =20 Hewlett-Packard, and unnamed individuals.=20 =09=09http://www.mimeo.com =09=09 =09=09 =09=09E-Commerce Firm Callbutton Names First President & CEO =09=09 mail? top =09=09 =09=09 DALLAS (VENTUREWIRE) -- Callbutton, a provider of e-commerce technol= ogy that=20 aims to enable businesses to interact one-on-one with potential and current= =20 online customers, announced the appointment of Michael Markette as the=20 company's new president and CEO. He is the first person to hold this=20 position. Prior to his appointment, the company was headed by founder Eric= =20 Linington, who will continue with the company as its chairman. Before joini= ng=20 Callbutton, Mr. Markette headed LeadSwapNetwork, a spin-off of Onyx Softwar= e.=20 Currently backed by individuals, Callbutton is actively seeking Series A=20 financing. =09=09http://www.callbutton.com =09=09 =09=09 =09=09vc fund news =09=09? =09=09Invesco Closes $150M EuroMedia Fund as Part of $530M Pool=20 =09=09mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- Invesco Private Capital announced the clos= ing of=20 EuroMedia Venture Fund at $150 million for early- and expansion-stage=20 investments in information technology, communications, broadband=20 infrastructure, and global commerce companies. The EuroMedia Venture Fund,= =20 Citi Venture 2000 with $150 million, and Chancellor V with $230 million are= =20 three funds that make up the $530 million Chancellor V pool of capital=20 Invesco closed on March 31, 2001. EuroMedia and the other two funds will=20 co-invest in technology companies. EuroMedia is expected to invest in=20 approximately 40 companies over a period of three years and has already=20 invested $41 million in 16 communications infrastructure and software=20 companies in the U.S. and Europe. EuroMedia also said it expected to announ= ce=20 four to five U.S. investments in this quarter. The limited partners in=20 EuroMedia Venture Fund include 21 Investimenti; Arnoldo Mondadori Editore;= =20 Banca Nazionale Del Lavoro; Ciao Holding; Fininvest of Italy, which contri!= =20 buted $41 million; KirchGruppe; Mediaset; and Monte Dei Paschi di Siena.=20 There are six partners handling the fund and Alessandro Piol is the managin= g=20 partner responsible for the EuroMedia Venture Fund. Invesco Private Capital= =20 manages over $2.3 billion.=20 =09=09http://www.privatecapital.invesco.com =09=09 =09=09 =09=09PSINet Ventures Closing Shop and Liquefying Its Portfolio =09=09 mail? top =09=09 =09=09 ASHBURN, Va. (VENTUREWIRE) -- PSINet Ventures, the venture capital u= nit of=20 troubled Internet company PSINet, will not do any more new deals and will= =20 focus on managing and liquefying its portfolio companies, a source familiar= =20 with the company told VentureWire. Following the layoffs or departure of al= l=20 but three employees, company treasurer Michael A. Erfurt is managing the=20 venture capital unit. PSINet Ventures' portfolio companies include=20 AccessBroker.com, a Dallas-based provider of online investing and trading= =20 services; Agea, formerly agentGO, an application platform developer in=20 Austin, Texas; Boulder, Colorado-based Cirdadence, which developed online= =20 service management technology; Coventus, a Kanata, Ontario provider of=20 Web-based applications and remote access services; and Roku Technologies, a= =20 Chantilly, Va.-based software developer.=20 =09=09http://www.psinetventures.com =09=09 =09=09 =09=09Schneider Electric Launches $44 Million Corporate VC Arm=20 =09=09mail? top =09=09 =09=09 CHICAGO (VENTUREWIRE) -- Schneider Electric, a manufacturer of compo= nents=20 for electrical distribution, industrial control, and automation, announced= =20 the formation of Schneider Electric Ventures, a EUR 50 million ($44 million= )=20 fund to invest in technology and e-business companies with long-term=20 potential to enhance Schneider Electric's products and services. Schenider= =20 said possible areas would include remote monitoring, engineering design=20 tools, collaborative project management, micro-power generation, and wirele= ss=20 technology. Schneider said it would invest up to $5 million in Series B=20 rounds or later and would prefer to co-invest with other venture capital=20 firms. The company also said that its equity stake in a startup would not= =20 exceed 40%. To date, Schneider Electric Ventures has made nine investments,= =20 among them Entivity, Knexsis, Ixia Soft, and Team Photonics. The fund will= =20 consider investments in Asia, Europe, and the U.S. and has offices in=20 Chicago, Paris, and Singapore. There are five part! ners managing the fund,= =20 with Jean Francois Masson in Chicago responsible for e-business investments= =20 and Jean Netter in Paris responsible for technology investments. Schneider= =20 Electric is headquartered in Paris and traded on the Paris Stock Exchange.= =20 Telephone 847-925-3513. =09=09http://www.schneider-electric.com =09=09 =09=09 =09=09Venture Firm Axiomlab Raises $17.1 Million Second Round=20 =09=09mail? top =09=09 =09=09 LONDON (VENTUREWIRE) -- Axiomlab, an early-stage venture firm, said= it has=20 raised GBP 12 million ($17.1 million) in its second round of funding from= =20 Aberdeen Asset Managers, M&G, Merrill Lynch Investment Managers, Morley Fun= d=20 Management, and individual investors. The company said the financing would = be=20 used for staff expansion, opening offices in the Midlands, Ireland, and in= =20 the Northeast area of the U.K., as well as for portfolio investments. To=20 date, Axiomlab has invested in eight companies, including auctions2business= =20 and empiricom. The company said it has a post-money valuation of $46 millio= n,=20 with institutional investors owning 50% equity in the company. Axiomlab has= =20 raised $25.6 million in two rounds of funding and is trading on the London= =20 Stock Exchange's alternative investment market.=20 =09=09http://www.axiomlab.com =09=09 =09=09 =09=09CalPERS Invests $10 Million in SVCV Fund 2 =09=09 mail? top =09=09 =09=09 SAN FRANCISCO (VENTUREWIRE) -- Silicon Valley Community Ventures (SV= CV), a=20 venture assistance fund that provides advisory services and capital, said i= t=20 has secured a commitment of $10 million from CalPERS for its second fund. T= he=20 fund, which has not yet closed, expects to secure additional limited=20 partners. The fund will provide equity financing for companies with revenue= s=20 between $1 million to $10 million in low-income communities, mainly in the= =20 San Francisco Bay area. SVCV typically invests from $250,000 to $1 million = in=20 initial and follow-on financing in each company. The firm expects to add a= =20 senior portfolio manager to its team. To date, SVCV has invested $1.69=20 million in eight companies and provided a total of $275,000 in loans to thr= ee=20 companies. This investment in SVCV is part of a $475 million commitment by= =20 CalPERS to 11 venture capital and private equity firms in an effort to inve= st=20 in the state's urban and rural markets. =09=09http://www.calpers.ca.gov =09=09http://www.svcv.org =09=09 =09=09 =09=09Friends Ivory & Sime Closes 3PC with $61 Million=20 =09=09mail? top =09=09 =09=09 LONDON (VENTUREWIRE) -- Friends Ivory & Sime, an international asset= =20 management firm, announced closing 3PC Investment Trust, its 12th trust,= =20 with GBP 43 million ($61 million). The firm had targeted raising between $5= 7=20 million and $214 million. Friends Ivory & Sime said that up to 40% of the= =20 fund would be invested in private companies and the remaining 60% will be= =20 invested in initial public offerings on European stock exchanges. The firm= =20 said it expects to invest in between 30 to 40 technology and biotechnology= =20 companies over a period of two years. Friends Ivory & Sime has $53 billion = of=20 assets under management. Cazenove & Co. acted as the placement agent for=20 raising the capital.=20 =09=09http://www.friendsis.com =09=09 =09=09 =09=09vw corrections =09=09? =09=09ProfessorQ =09=09 mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- An item in Tuesday's VentureWire incorrect= ly=20 spelled the name of ProfessorQ's new director David Seldin. =09=09 =09=09 =09=09Ebrary =09=09 mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- A story in Tuesday's VentureWire about Ebr= ary=20 adding to its board, incorrectly identified new board member John Warnock's= =20 relationship with Ebrary's CEO Christopher Warnock. John Warnock is=20 Christopher Warnock's father.=20 =09=09 =09=09 =09=09company index =09=09top =09=09 =09=09AuctionMart.com, AxiomLab, Bla-Bla.com, BrainHeart Capital, Buzzsaw.c= om,=20 California Public Employees, Callbutton, Capstan Systems, Centient Solution= s,=20 Chicory Systems, CI Wireless, Cognitive Arts, Concellera Software, Confer= =20 Software, Creditek, CT Holdings, DataPower Technology, Digiplex, eLedger.co= m,=20 EMS Technologies, Escalate, Eternal Systems, Europolitan Vodafone, EYP=20 Mission Critical Facilities, Flatiron Partners, Friends Ivory & Sime Privat= e=20 Equity, Guru.com, Hi3G, Infineon Technologies, Invesco Private Capital,=20 KeepSmart, KPE, LifeClips.com, Metiom, Mimeo.com, Model N, Motient Satellit= e=20 Ventures, MyBiz.com, OnSite Access, Opsys, Parago, Parthus Technologies,=20 PSINet, PSINet Ventures, Qiva, Rare Medium Group, Schneider Electric, Silic= on=20 Valley Community Ventures, Starwire, STSN, Summit Partners, The MBA Co., TV= =20 Data Technologies, UGO Networks, VDSL Systems, Viator, Working Woman Networ= k,=20 XCare.net=20 =09=09 =09=09 =09=09Mobile Outlook - June 5 & 6 =09=09 =09=09The era of the Dick Tracy-style wrist videophone isn't upon =09=09us yet, but if the current generation of entrepreneurs and =09=09visionaries has its way, the arrival may not be far off. =09=09Even in a time of turbulent markets and an unsteady economy, =09=09the promise of the mobile Internet has turned out to be one =09=09of the brighter spots, one of the few remaining refuges of =09=09investors' interest. Technologic's newest Outlook will ex- =09=09amine the possibilities and pitfalls of mobile connectivity, =09=09and cover the market and technology opportunities for =09=09innovators and investors alike.http://www.mobile2001.net/ =09=09 =09=09 =09=09 =09=09investor index =09=09top =09=09 =09=093i Group, APV Technology Partners, Asset Management, Carlyle Venture= =20 Partners, General Atlantic Partners, Intel Capital, Marriott International,= =20 On Command, Providence Equity Partners, Quester, Siemens Mustang Ventures,= =20 Thomvest Holdings, Travelocity, Tribune Media Services, VantagePoint Ventur= e=20 Partners, Worldspan =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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