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?=09VentureWire =09Wednesday, May 30, 2001=09=09? ?=09CONTENTS | COMPANIES | INVESTORS | ADVERTISE | TELL A FRIEND=09VentureW= ire Index =09=09'VentureWire =09=09today: 699.6 ? -1.40%=09? ? =09=09 =09=09 =09=09top stories =09=09 =09=09 =01=07 NotifyMe Networks Fails to Close Series D, Shuts Down =09=09 =01=07 Software Firm MetaStorm Captures $20 Million in Round Two =09=09 =01=07 Boxerjam Lays Off 37 to Stay Afloat, Searches for Buyers =09=09 =01=07 Real Media's Co-Founder Leaving To Start New Online Company= =20 =09=09 =09=09 =09=09TODAY'S FEATURES=20 =09=09Koch Ventures Investing Less But Expanding Presence =09=09By Matthew Sheahan =09=09Although the venture capital unit of Wichita, Kan.-based Koch Industr= ies will=20 see a drop of between 10% and 15% in its investments this year, the unit is= =20 expanding with new offices in the Southwest, including Dallas and southern= =20 California. more<< =09=09UPCOMING EVENTS =09=09June 5-6: San Francisco =09=09Mobile Outlook 2001 =09=09 =09=09The world's second-largest ISP is now mobile. NTT DoCoMo boasts 24 mi= llion=20 i-mode subscribers, making it second only to AOL. The mobile Internet is th= e=20 future so come cut the wires at Mobile Outlook. Mobile Outlook is now less= =20 than 1 week away but there is still time to take part in the analysis of th= e=20 future of this industry. Register Today!=20 =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 Voice and Data Co. Spotwave Wireless Has $1.9M Series A=20 =09=09=01=07 Bernina Biosystems Raises $6.5M in Second Round=20 =09=09=01=07 Telecom Software Firm Trendium Closes Round Two at $25M =09=09 =01=07 Australian Seek Communications Closes $1.6M Round =09=09 =01=07 Newtek Capital Puts $3.6M in Universal Processing Services =09=09 =01=07 vSimplify Closes Series B at $2.75 Million =09=09 =01=07 Core Networks Receives Follow-On Financing in Series B =09=09 =01=07 Speech Recognition Software Firm InfoTalk Nabs $12M =09=09 =01=07 Meetings and Events Firm StarCite Closes $10M Round Three =09=09 =01=07 Communications Provider eKit Raises $6.2 Million Series C =09=09 =01=07 Biotech Firm Encelle Gets $7 Million Series C =09=09 =01=07 Pegasus VC Invests in Info Security Firm Core SDI =09=09 =01=07 Software Firm Esterel Raises $10.5 Million Third Round=20 =09=09 =09=09 =09=09bad news =09=09 =09=09 =01=07 Sports and Fitness Portal Asimba Winds Down Operations =09=09 =01=07 StockHouse Slashes 68% of Staff, Closes Four Offices =09=09 =01=07 Hookt.com Files For Chapter 11, Seeks Buyer =09=09 =09=09 =09=09new products =09=09 =09=09 =01=07 Software Vendor Exteriority Launches, Buys Assets of PaperX= =20 =09=09=01=07 cPower Launches To Assist Tech Firms with Product Marketing =09=09 =09=09 =09=09m&a =09=09 =09=09 =01=07 IT Factory Makes Eighth Acquisition with NotesHouse =09=09 =01=07 Online Sales Tech Firm NetSales Seeks Buyer =09=09 =01=07 Sonik Acquires Broadbank Assets of RadioConnect =09=09 =01=07 Chordiant Software Acquires Assests of ASP Outfitter =09=09 =01=07 focusCORE Accepts Acquisition Offer by Avrio Group =09=09 =09=09 =09=09new directors =09=09 =09=09 =01=07 NETdelivery Adds Ex-AT&T President to Board =09=09 =01=07 Systems Design Firm Nallatech Names Pentair Exec As Chair =09=09 =09=09 =09=09new people =09=09 =09=09 =01=07 Converged Switching Firm Gluon Names President & CEO =09=09 =01=07 Enterprise Security Firm Solsoft Names New Chairman and CEO= =20 =09=09=01=07 Corechange Names Charles F. Kane President =09=09 =01=07 InfoImage Appoints Thomas Niccoli as COO, President =09=09 =01=07 Knowledge Management Firm QED Solutions Names President =09=09 =09=09 =09=09vc fund news =09=09 =09=09 =01=07 Woodside Investing On An Upswing Despite Market Woes =09=09 =01=07 Pakistani Firm KASB TechVentures to Close Down in June =09=09 =01=07 Southern Capitol Partners with State-Funded Biotech Center =09=09 =09=09 =09=09vc personnel =09=09 =09=09 =01=07 Ex-Pequot Capital VP Joins Partech as Portfolio Manager =09=09 =09=09 TOP STORIES... NEW MONEY... BAD NEWS... NEW PRODUCTS... M&A... NEW= =20 DIRECTORS... NEW PEOPLE... VC FUND NEWS... VC PERSONNEL =09=09 =09=09 =09=09top =09=09 =09=09 =09=09Everyone's talking about collaboration-from collaborative =09=09e-commerce to collaborative manufacturing. Everyone's also =09=09trying to don the collaboration mantle as they vie for =09=09attention from customers and investors. =09=09 =09=09Enterprise Outlook will cut through the hype. Learn about =09=09fundamental technologies and issues that must be ironed out =09=09before businesses can work together. See which applications =09=09truly merit being called "collaborative." Discover how the =09=09supply chain takes on new power when companies can talk =09=09machine-to-machine, application-to-application, and =09=09person-to-person. =09=09 =09=09Register and reserve your place=20 today:http://www.enterpriseoutlook.com/register.asp =09=09 =09=09 =09=09 =09=09 top stories=20 =09=09? =09=09NotifyMe Networks Fails to Close Series D, Shuts Down =09=09 mail? top =09=09 =09=09 SUNNYVALE, Calif. (VENTUREWIRE) -- NotifyMe Networks, which distribu= ted=20 customizable interactive alerting services that enable real-time, two-way= =20 communication across phones, pagers, and e-mail platforms, has shut down,= =20 according to CEO Chuck Dietrick. Mr. Dietrick said that despite securing a= =20 lead investor and raising half of the approximately $15 million Series D=20 financing, the company was unable to close the round and thus shut down. Th= e=20 company employed a staff of 50. NotifyMe Networks now looks to sell off its= =20 business assets through assignment company DSI. Ideally, said Mr. Dietrick,= =20 the company will sell for "north of $5 million." Potential buyers include= =20 large telecommunications and software companies. Prior to its efforts to=20 raise a Series D, NotifyMe Networks had raised $14.2 million from Attractor= =20 Investment Management and individuals. =09=09http://www.notifyme.com =09=09 =09=09 =09=09Software Firm MetaStorm Captures $20 Million in Round Two =09=09 mail? top =09=09 =09=09 SEVERNA PARK, Md. (VENTUREWIRE) -- MetaStorm, which develops softwar= e that=20 enables companies to integrate data and systems, announced the close of $20= =20 million in second round financing. New investor UBS Capital Americas II led= =20 the round, which also included new investor Ironside Ventures and 3i Group,= =20 an existing investor. A company spokesperson declined to reveal post-money= =20 valuation, but said it was "down moderately." Lawrence Handen, partner at U= BS=20 Capital Americas, joins the board, which now has seven directors. Funds wil= l=20 be used for sales, marketing, distribution, and customer support in North= =20 American and international markets, expanding the company's presence in=20 Germany, Italy, South Africa, Australia, France, Spain, and Switzerland.=20 Metastorm, which employs about 150 people, expects to add another 20 to 25= =20 employees by the end of the year. The company expects to see roughly $25=20 million in revenues for 2001. =09=09http://www.metastorm.com =09=09 =09=09 =09=09Boxerjam Lays Off 37 to Stay Afloat, Searches for Buyers =09=09 mail? top =09=09 =09=09 CHARLOTTESVILLE, Va. (VENTUREWIRE) -- Boxerjam, a producer and distr= ibutor=20 of games and game shows for online, wireless, and broadcast networks is=20 looking for a buyer, according to CEO Alan Cunningham, who confirmed Tuesda= y=20 that 37 employees have been laid off and seven people remain at the company= .=20 He said the company is currently engaged in discussions with prospective=20 buyers, adding that it was too early to say if anyone is interested. Mr.=20 Cunningham blamed the move on the present market environment, stating that= =20 Boxerjam is still in business, but "operating on a low budget." All the=20 laid-off employees received a severance package consistent with market=20 standards, he said. Boxerjam, which has raised $15 million in funding to=20 date, is backed by New Enterprise Associates and Oak Investment Partners.= =20 =09=09http://www.boxerjam.com =09=09 =09=09 =09=09Real Media's Co-Founder Leaving To Start New Online Company=20 =09=09mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- Real Media, an online advertising firm, sa= id David=20 Morgan, a co-founder and co-chairman of the company, will be leaving the=20 company on June 30 to start a new online company. Mr. Heinz Waegli, the CFO= =20 of the PubliGroupe, will replace Mr. Morgan as co-chairman of the company.= =20 The PubliGroupe holds a majority interest stake in Real Media. Mr. Morgan,= =20 who said he was leaving to find another entrepreneurial challenge, also sai= d=20 the new company would develop software tools to enable media companies to= =20 capture and manage data about their audiences. For the moment Mr. Morgan sa= id=20 he is financing the new venture by himself and has no plans for outside=20 funding. Real Media's other co-founders, CTO Gil Beyda and executive vice= =20 president Charles Smith, will remain with the firm. Real Media said it=20 expects to reach profitability before the end of the year. The company has= =20 raised more than $30 million from Advance Internet, Destination Group, and= =20 PubliGroupe. =20 =09=09http://www.realmedia.com =09=09 =09=09 =09=09 new money=20 =09=09? =09=09Voice and Data Co. Spotwave Wireless Has $1.9M Series A=20 =09=09mail? top =09=09 =09=09 OTTAWA (VENTUREWIRE) -- Spotwave Wireless, a provider of voice and w= ireless=20 data services, said it raised CAD $3 million ($1.9 million) in Series A=20 financing, co-led by Venture Coaches and Primaxis Technology Ventures of=20 Toronto. The company plans to use the funding for product development.=20 Post-money, Spotwave has a valuation of $9.1 million. As a result of this= =20 financing, Kerri Golden, a vice president of Primaxis Technology Ventures,= =20 has been granted the sixth seat on the company's board of directors, which= =20 also includes Claude Haw, managing partner of Venture Coaches; Conrad Lewis= ,=20 principal of Eagle One Ventures Corporation; and Luc Lussier, president and= =20 CEO of Lumic Electuronics. A company spokesperson declined to reveal a burn= =20 rate, but said Spotwave expected the funds to last through to the end of th= e=20 year. The company is currently raising a Series B round of $10 million to $= 15=20 million, to close before the year's end. =09=09http://www.spotwave.com =09=09 =09=09 =09=09Bernina Biosystems Raises $6.5M in Second Round=20 =09=09mail? top =09=09 =09=09 TUTZING, Germany (VENTUREWIRE) -- Bernina Biosystems, which develop= s drug=20 delivery technology, said it raised DEM 15 million ($6.5 million) in=20 second-round funding led by new investor High Tech Beteiligungen, which=20 invested $3.5 million. Belgian Fonds Rendex, another new investor, invested= =20 $1.3 million, and previous investors Earlybird and BioM invested $1.7=20 million. Bernina said the financing would be used to develop its=20 organ-specific drug delivery platform technology. The company also said it= =20 has established partnerships with departments at the University of=20 Duesseldorf and the Regensburg University in Germany. Bernina said it is=20 targeting to reach profitability in 2003 or 2004.=20 =09=09http://www.bernina-biosystems.com =09=09 =09=09 =09=09Telecom Software Firm Trendium Closes Round Two at $25M =09=09 mail? top =09=09 =09=09 SUNRISE, Fla. (VENTUREWIRE) -- Trendium, a provider of high-end spec= ialized=20 software for telecommunications firms, Internet service providers, and=20 broadband carriers, said it has closed its second round of funding at $25= =20 million led by Mellon Ventures. Mellon was joined by other new investors=20 Vertex Management, Crossbow Ventures, GKM Venture Partners, as well as=20 individuals from the communications industry. Previous investors M/C Ventur= e=20 Partners and Trinity Ventures also participated in the round. Trendium, whi= ch=20 raised $13.5 million in its first round of funding, said it will use the=20 latest funds to expand its sales and marketing in North America and Europe= =20 and add new functions and features to its products, which are being tested= =20 and deployed by several service providers. =09=09http://www.trendium.com =09=09 =09=09 =09=09Australian Seek Communications Closes $1.6M Round =09=09 mail? top =09=09 =09=09 MELBOURNE, Australia (VENTUREWIRE) -- Seek Communications, an Intern= et job=20 site for Australia and New Zealand, said it raised AUD 3.1 million ($1.6=20 million) from return investors Yahoo!, AMWIN, Macquarie Technology Ventures= ,=20 AMCF, and new investor Acer Technology Partners Fund. No new board seats we= re=20 granted as a result of this funding. In July of 2000, the company received = an=20 investment of $3.2 million from Yahoo!. Seek Communications' chairman Irvin= =20 Rockman is also an investor in the company. Seek has raised $12.9 million t= o=20 date.=20 =09=09http://www.seek.com.au =09=09 =09=09 =09=09Newtek Capital Puts $3.6M in Universal Processing Services =09=09 mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- Newtek Capital, a publicly traded firm whi= ch=20 invests in early-stage technology and Internet companies, said it invested= =20 $3.6 million in first-round funding for Universal Processing Services, a=20 provider of electronic processing technology for retail commerce=20 transactions. Universal Processing Services plans to dedicate the new funds= =20 to expansion of its marketing programs, corporate infrastructure, and team.= =20 As a result of this financing, Newtek received a 60% ownership interest in= =20 Universal Processing Services and was granted three seats on the company's= =20 five-member board.=20 =09=09http://www.newtekcapital.com =09=09 =09=09 =09=09vSimplify Closes Series B at $2.75 Million =09=09 mail? top =09=09 =09=09 STAMFORD, Conn. (VENTUREWIRE) -- vSimplify, which hosts corporate in= tranets,=20 online benefit enrollment, and voluntary benefits for small to midsize=20 companies, said it closed its Series B at $2.75 million with funding from= =20 strategic lead investor Skandia Innovation U.S., previous investor=20 Connecticut Innovations, and Lexam Capital. The company said it will use th= e=20 money for infrastructure development and sales and marketing. America=20 Skandia, a subsidiary of Sweden-based Skandia Insurance, will co-market=20 vSimplify's products. Connecticut Innovations will provide marketing and=20 business development for the company. vSimplify closed its Series A round i= n=20 June 2000, led by Connecticut Innovations, at $4.5 million with participati= on=20 from American Skandia and individual investors. Founded in 1999, the compan= y=20 reports a $300,000 monthly burn rate. The company also announced the additi= on=20 of three board members: Anders O. Soderstrom, president of Skandia=20 Innovation, US; Peter Longo, managing director of Connecticut Innovations;= =20 and David W. Mullins Jr., former vice chairman of the Federal Reserve Board= =20 under Alan Greenspan, and assistant secretary of the treasury for domestic= =20 affairs in the first Bush administration. Mr. Mullins previously sat on the= =20 advisory board of vSimplify. =09=09http://www.vsimplify.com =09=09 =09=09 =09=09Core Networks Receives Follow-On Financing in Series B =09=09 mail? top =09=09 =09=09 HALIFAX, Nova Scotia (VENTUREWIRE) -- Core Networks, which develops= =20 activation and network management software applications for the high-speed= =20 Internet-over-cable industry, said it received follow-on financing to its= =20 Series B round, in which the company raised $10.5 million in March. The=20 amount of this investment was not disclosed. Return investor Royal Bank=20 Capital Partners and new investor Intel Capital provided the new financing,= =20 which will be used for business development. The deal was based on the same= =20 valuation as the March funding, which was provided by Royal Bank Capital=20 Partners Telecommunications Fund, ACF Equity Atlantic, and Skypoint Capital= .=20 =09=09http://www.corenetworks.com =09=09 =09=09 =09=09Speech Recognition Software Firm InfoTalk Nabs $12M =09=09 mail? top =09=09 =09=09 HONG KONG (VENTUREWIRE) -- InfoTalk, which develops conversational s= peech=20 recognition technology, said it has closed $12 million in a round of=20 financing. New investor imGO led the round, with participation from other n= ew=20 investors Accenture Technology Ventures and HSBC Private Equity Asia.=20 Existing investor Walden International also participated in the round. J.P.= =20 Morgan acted as placement agent. Funds will be used for expansion. Prior to= =20 this round, InfoTalk had received $4 million from Walden International and = $1=20 million from Singaporean technology fund TDF Management. =09=09http://www.infotalk.com.hk =09=09 =09=09 =09=09Meetings and Events Firm StarCite Closes $10M Round Three =09=09 mail? top =09=09 =09=09 PHILADELPHIA (VENTUREWIRE) -- StarCite, a provider of supply-chain= =20 purchasing and management technology for the meetings and events industry,= =20 said it raised $10 million in third round of financing led by new investor= =20 American Express with participation from Breakaway Solutions, Maritz Travel= ,=20 Starwood Hotels & Resorts Worldwide, Strattech Partners, and VerticalNet.= =20 Previous investors Internet Capital Group, McGettigan Partners, Mellon Bank= ,=20 and Networld also participated in this round. The company plans to dedicate= =20 the new funds to working capital and expansion. A company spokesperson=20 declined to reveal the valuation, but indicated that this was a down round.= =20 As a result of this financing, American Express and Starwood Hotels & Resor= ts=20 Worldwide have each been granted one seat on the company's seven-member=20 board, which includes Mike Forster of the Internet Capital Group and Davor= =20 Gjivoje of Networld. Prior to this round, StarCite raised a first round of = $6=20 million in October of 1999 from the Internet Capital Group and McGettigan= =20 Partners. In June of 2000 the company closed $14 million in second-round=20 financing from the Internet Capital Group, Mellon Bank, and Networld.=20 =09=09http://www.starcite.com =09=09 =09=09 =09=09Communications Provider eKit Raises $6.2 Million Series C =09=09 mail? top =09=09 =09=09 MELBOURNE, Australia (VENTUREWIRE) -- eKit, a provider of unified me= ssaging=20 technology services for travelers, said that it received AUD $12 million=20 ($6.2 million) in Series C financing led by previous investor Allen &=20 Buckeridge, with unnamed existing investors participating. Intel Capital, a= =20 new investor, also participated in this round. The company plans to use the= =20 new funds for product development and international expansion in Europe,=20 North America, and Asia. As a result of this financing, Intel was granted a= =20 non-voting observer seat on the company's four-member board, which includes= =20 Frank Foster of Arllen & Buckeridge. According to co-CEO Bryan Rowe, this w= as=20 a down round, with a post-money valuation of approximately $13 million. Wit= h=20 a burn rate of "between $100,000 and $200,000" per month, Mr. Rowe=20 anticipates that the company will reach profitability by the fourth quarter= =20 of this year and does not expect to raise additional capital in the near=20 future. Prior to this round the company raised approximately $7 million fro= m=20 Allen & Buckeridge, AMP Investments, Escor, JGL Investments, and unnamed=20 individuals.=20 =09=09http://www.ekit-inc.com =09=09 =09=09 =09=09Biotech Firm Encelle Gets $7 Million Series C =09=09 mail? top =09=09 =09=09 RALEIGH, N.C. (VENTUREWIRE) -- Encelle, which develops an injectable= =20 biopolymer that helps skin ulcers heal, announced that it has raised a Seri= es=20 C round of $7 million co-led by previous investor InterSouth Partners and n= ew=20 investor Koerner Capital. There has also been participation from previous= =20 investors Child Health Investment, Cordova Ventures, the N.C. Enterprise=20 Fund, and North Carolina BioScience Fund/Eno River Capital. New investors= =20 Hibernia Capital and Coastal Growth Partners also participated in this roun= d,=20 which had its first close at $4 million in December of 1999. The company=20 plans to use the new funds for continued human clinical trials and staff=20 expansion. According to Encelle CEO James D. Woodward, this round was "just= =20 slightly up," with a post-money valuation of $20 million. As a result of th= is=20 financing, John Koerner of Koerner Capital has joined as the seventh member= =20 of the company's board of directors, which includes Dr. Teo Dagi of Cordova= =20 Ventures and Dennis Dougherty of Intersouth Partners. Mr. Koerner will be= =20 taking the seat of company co-founder John Sherwin Jr., who has resigned fr= om=20 the board. Encelle is currently raising a Series D round of $8 million in a= =20 combination of strategic and venture capital, to close this fall. =09=09http://www.encelle.com =09=09 =09=09 =09=09Pegasus VC Invests in Info Security Firm Core SDI =09=09 mail? top =09=09 =09=09 BUENOS AIRES, Argentina (VENTUREWIRE) -- Pegasus Venture Capital, a = Latin=20 American investment fund, said it led a $3 million round of financing for= =20 Core SDI, a provider of security products and services for information=20 systems. Pegasus contributed $2.5 million, while individuals invested the= =20 remaining $500,000. Core's flagship product, Core Security Solution, provid= es=20 services for security administration and management for large enterprises.= =20 Customers include Ernst & Young, Amazon.com, Microsoft , Bank of Boston, an= d=20 PricewaterhouseCoopers. =09=09http://www.core-sdi.com =09=09 =09=09 =09=09Software Firm Esterel Raises $10.5 Million Third Round=20 =09=09mail? top =09=09 =09=09 GUYANCOURT, France (VENTUREWIRE) -- Esterel Technologies, which deve= lops=20 software tools for verification and validation of embedded systems, said it= =20 secured EUR 12.3 million ($10.5 million) in third-round funding from Advanc= ed=20 Capital Europe, CDC Innovation Partners, Galileo Partners, and Intel Capita= l.=20 The company said the funding would be used for its expansion in North=20 America, the U.K., Germany, Scandinavia, and Asia. Esterel Technologies has= =20 received funding from eNgenuity Technologies, which owns a 22.7% equity sta= ke=20 in the firm, and from Financiere de Brienne, Inria Transfert, Innoven,=20 Innotech, Finno, and Thales Corporate Ventures.=20 =09=09http://www.esterel-technologies.com =09=09 =09=09 =09=09 bad news=20 =09=09? =09=09Sports and Fitness Portal Asimba Winds Down Operations =09=09 mail? top =09=09 =09=09 REDWOOD CITY, Calif. (VENTUREWIRE) -- Asimba, a sports and fitness l= ifestyle=20 site, has ceased operations and is "actively" looking for a buyer, a=20 spokesman for the company said. Asimba did not say what led to the shut dow= n,=20 but said it will continue to operate its Web site and service its existing= =20 customers. However, the company will not "be taking on new businesses."=20 Asimba is backed by McCown De Leeuw & Co., I-Hatch Ventures, CMGI@Ventures,= =20 Global Retail Partners, and Fayez Sarofim & Co.=20 =09=09http://www.asimba.com =09=09 =09=09 =09=09StockHouse Slashes 68% of Staff, Closes Four Offices =09=09 mail? top =09=09 =09=09 VANCOUVER, British Columbia (VENTUREWIRE) -- StockHouse Media, which= =20 provides online financial content and development products and services, sa= id=20 it cut 85 positions, or 68% of its staff, last Wednesday as the company=20 restructures in response to market conditions. StockHouse also said it clos= ed=20 its offices in Australia, Hong Kong, Singapore, and the U.K., but will=20 continue to operate its Web sites for these countries out of its North=20 American offices. StockHouse said the cuts were concentrated in content and= =20 software development and all the laid-off employees received severance. For= ty=20 people remain with StockHouse Media in its offices in Toronto, Sarasota,=20 Fla., and Vancouver. StockHouse said it would continue to provide its free= =20 online services but also plans to launch a fee-based, real-time stock=20 information service this summer. The company, which said the layoffs reduce= d=20 the monthly burn rate by almost 50%, is targeting to reach profitability by= =20 the end of the year. In addition, StockHouse said it plans to raise a $10= =20 million to $15 million third round within the next six months. To date,=20 StockHouse has raised over $30 million from chinadotcom, New World CyberBas= e,=20 SCMP.com, and individual investors.=20 =09=09http://www.stockhouse.com =09=09 =09=09 =09=09Hookt.com Files For Chapter 11, Seeks Buyer =09=09 mail? top =09=09 =09=09 NEW YORK (VENTUREWIRE) -- Hookt.com, an online destination for hip-h= op=20 music, news, culture, fashion, and shopping, said it has filed for=20 reorganization under Chapter 11 bankruptcy. The company said pending lawsui= ts=20 against the company by two of its former Web developers prompted it to file= .=20 Hookt said Chapter 11 filing will result in an automatic stay of all actual= =20 and pending litigation and that the company will continue its day-to-day=20 operations while it evaluates its alternatives--including the potential sal= e=20 of the company. In January, Hookt merged with Platform.net, an urban=20 lifestyle portal and e-commerce network. The merged companies consolidated= =20 staff and operations at Hookt's Manhattan offices, but remained separately= =20 branded Web sites. A Hookt spokesperson said Platform is a subsidiary of=20 Hookt and has not filed for bankruptcy. Hookt has a staff of 25. Hookt, whi= ch=20 recently raised a $5 million round of funding, is backed by investors=20 including Warburg Pincus, Chase Capital Entertainment Partners, and=20 Quetzal/Chase Capital Partners. Platform.net's backers include Spinnaker=20 Capital, Sony Music Entertainment, and individual investor Michael Tannen. =09=09http://www.hookt.com =09=09http://www.platform.net =09=09 =09=09 =09=09 new products=20 =09=09? =09=09Software Vendor Exteriority Launches, Buys Assets of PaperX=20 =09=09mail? top =09=09 =09=09 LONDON (VENTUREWIRE) -- Exteriority said it acquired the software as= sets of=20 PaperX, a defunct London-based paper marketplace, and is launching a new=20 e-commerce software business. The terms of the deal were not disclosed.=20 Exteriority was founded by Borge Bogaard, Christoph Ferch, and Ian Leader,= =20 former members of the PaperX management team. Mr. Leader, who was PaperX's= =20 technology director, said Exteriority will not continue the marketplace=20 business of PaperX. Instead, it will provide private marketplace and=20 supply-chain software to businesses. PaperX closed down in February and lai= d=20 off all of its employees. Mr. Leader said three people from PaperX's=20 technology team have joined Exteriority, which is headed by Mr. Ferch, the= =20 CEO. Mr. Bogaard is chairman and chief operating officer, and Mr. Leader is= =20 the chief technology officer. According to Exteriority, PaperX invested mor= e=20 than EUR 11 million ($9.5 million) in the development of its software, with= =20 venture capital provided by Apax Ventures, Finnish investor Menire, and=20 Insight Capital's European fund. PaperX had raised a total of $12.9 million= =20 in venture financing, Mr. Leader said. Exteriority is backed by undisclosed= =20 individual investors. The company also announced it has teamed up with the= =20 European Bio-Energy Exchange to develop an e-procurement software platform= =20 for bio fuels.=20 =09=09http://www.exteriority.com =09=09 =09=09 =09=09cPower Launches To Assist Tech Firms with Product Marketing =09=09 mail? top =09=09 =09=09 SAN DIEGO (VENTUREWIRE) -- cPower, a consulting firm providing marke= ting=20 services to business-to-business firms, announced the company's launch and= =20 spin off from the advertising firm DRB Partners. cPower will help both high= =20 technology and other types of companies launch new products. P. Griffith=20 Lindell, a former senior partner at DRB, founded the company with Richard P= .=20 Fedchenko, Raymond Brown, Karen Milne, and Victor Chinn. cPower also said i= t=20 aims to close a first round of funding for between $1.6 million and $5=20 million within the next six months. It also said it expects to be profitabl= e=20 in three years. =20 =09=09http://www.cpowerinc.com =09=09 =09=09 =09=09 m&a=20 =09=09? =09=09IT Factory Makes Eighth Acquisition with NotesHouse =09=09 mail? top =09=09 =09=09 BOSTON (VENTUREWIRE) -- IT Factory, an international supplier of=20 collaborative Internet business products and services and a Lotus independe= nt=20 software vendor, said it plans to complete its acquisition of NotesHouse, a= =20 Lotus Notes consultancy firm, within the next 30 days. No financial details= =20 were disclosed. This is IT Factory's eighth acquisition. The company said t= he=20 acquisition would be fully incorporated but also said there would be no=20 changes to NotesHouse's Copenhagen, Denmark-based office and 16-person staf= f.=20 Christian Holst Jensen, the managing director of NotesHouse, will continue= =20 with the company and become a vice president with IT Factory. NotesHouse ha= d=20 not received outside funding. IT Factory, which is backed by 2M Invest,=20 BankInvest, Den Danske Bank, and Gilde, also said it plans on closing a $20= =20 million to $30 million round with all new investors within the next 60 to 9= 0=20 days. Salomon Smith Barney is acting as the placement agent for the round.= =20 Edwards & Angell provided legal counsel to IT Factory.=20 =09=09http://www.itfactory.com =09=09 =09=09 =09=09Online Sales Tech Firm NetSales Seeks Buyer =09=09 mail? top =09=09 =09=09 OVERLAND PARK, Kan. (VENTUREWIRE) -- NetSales, a provider of technol= ogy and=20 support services aimed at connecting buyers and suppliers to each other via= =20 the Internet, said it is seeking a buyer. "They are in discussions concerni= ng=20 potential sale of assets or the whole company," said a company spokesperson= .=20 The company laid off 63 employees across the board last December, saying it= =20 was focusing more on supplier integration. Last summer NetSales sold its=20 online software sales division, eliminating 70 jobs, as part of its shift= =20 from a business-to-consumer focus to a business-to-business market. The=20 spokesperson said while there have been no more layoffs, the company is=20 "constantly evaluating." NetSales' backers include Advanta Partners, Chase= =20 Manhattan, HarbourVest Partners, and Kansas City Equity Partners, Norwest= =20 Equity Partners, Time Warner, and Wells Fargo.=20 =09=09http://www.netsales.com =09=09 =09=09 =09=09Sonik Acquires Broadbank Assets of RadioConnect =09=09 mail? top =09=09 =09=09 VISTA, Calif. (VENTUREWIRE) -- Sonik Technologies, which develops a= nd=20 manufactures radio frequency-based systems for wireless networks, said it= =20 acquired the Broadband Wireless Spread Spectrum product line of RadioConnec= t,=20 and that RadioConnect's founder and employees have joined Sonik. Financial= =20 details were not disclosed. RadioConnect's founder H. Maurice France is now= =20 vice president of RadioConnect products at Sonik. All of RadioConnect's=20 employees, which numbered less than ten, have relocated from their Torrance= ,=20 Calif. location to Sonik's headquarters in Vista, Calif. Sonik Technologies= =20 is a subsidiary of Vytek Wireless, a wireless data firm. Sonik Technologies= =20 is profitable and was acquired by Vytek in October 2000. Vytek Wireless is= =20 backed by CIBC World Markets, Charterhouse Group International, and Softban= k.=20 =09=09http://www.sonik.com =09=09http://www.vytek.com =09=09 =09=09 =09=09Chordiant Software Acquires Assests of ASP Outfitter =09=09 mail? top =09=09 =09=09 CUPERTINO, Calif. (VENTUREWIRE) -- Chordiant Software, a publicly tr= aded=20 company that provides CRM applications, said it acquired certain assets of= =20 ASP Outfitter. While full terms of the deal were not revealed, Chordiant di= d=20 receive intellectual property assets and server technology. According to a= =20 Chordiant spokesman, the remaining assets of ASP Outfitter have been merged= =20 with a hardware company that is part of the portfolio of Palo Alto,=20 Calif.-based venture capital firm Crescendo Ventures, which was a majority= =20 investor in ASP Outfitter. Crescendo could not be reached for comment. ASP= =20 Outfitter was also backed by West Covina, Calif.-based Falcon Fund.=20 =09=09http://www.chordiant.com =09=09 =09=09 =09=09focusCORE Accepts Acquisition Offer by Avrio Group =09=09 mail? top =09=09 =09=09 IRVINE, Calif. (VENTUREWIRE) -- focusCORE, a provider of subscriptio= n-based=20 computing services and managed application hosting, announced that it has= =20 accepted an acquisition offer by Avrio Group, a management advisory and=20 investment group specializing in communications and Internet technologies.= =20 The companies expect the transaction, the terms of which were not disclosed= ,=20 to close by June 15. focusCORE's backers include Network Ventures and unnam= ed=20 individuals.=20 =09=09http://www.focuscore.com =09=09 =09=09 =09=09 new directors=20 =09=09? =09=09NETdelivery Adds Ex-AT&T President to Board =09=09 mail? top =09=09 =09=09 BOULDER, Colo. (VENTUREWIRE) -- NETdelivery, which provides digital= =20 applications for next generation online data management, said John R. Walte= r=20 has become the seventh member of the board of directors. He was introduced = to=20 the company through the board. Previously, Mr. Walter was AT&T's president= =20 and COO and R.R. Donnelley and Sons's chairman, president, and COO. He is= =20 currently a member of the following boards: Abbott Laboratories, Deere &=20 Company, Celestica, Manpower, and Jones Lang LaSalle. Founded in 1995,=20 NETdelivery's investors are Apex Venture Partners, First Analysis, Keystone= =20 Venture Capital, and the Productivity Fund. The company expects to announce= =20 an eighth member to its board by the end of the week and will also appoint = a=20 new vice president of sales within the next few weeks.=20 =09=09http://www.netdelivery.com =09=09 =09=09 =09=09Systems Design Firm Nallatech Names Pentair Exec As Chair =09=09 mail? top =09=09 =09=09 GLASGOW, Scotland (VENTUREWIRE) -- Nallatech, an electronic systems = design=20 and supply company, said it appointed Ken Lewandowski as chairman of its=20 board of directors. Mr. Lewandowski currently serves as president of Pentai= r=20 Enclosures Group Europe, a division of publicly traded Pentair, a=20 manufacturer with core businesses in the tools, water technologies, and=20 enclosures markets. In December 2000 Nallatech raised $2.9 million in its= =20 first round of funding from 3i and Scottish Equity Partners.=20 =09=09http://www.nallatech.com =09=09 =09=09 =09=09 new people=20 =09=09? =09=09Converged Switching Firm Gluon Names President & CEO =09=09 mail? top =09=09 =09=09 PETALUMA, Calif. (VENTUREWIRE) -- Gluon Networks, a developer of con= verged=20 switching and management systems for local service providers, said it has= =20 appointed Jo Anne Heywood Miller as president and CEO. Ms. Miller, who=20 officially joins the company on June 26, replaces George Hawley, who will= =20 continue with the company as chairman of the board and will also serve as a= =20 senior advisor to the company. Prior to joining Gluon Networks, Ms. Miller= =20 was founding vice president of engineering for wireless and voice-over-IP= =20 firm JetCell, which was acquired by Cisco Systems in May 2000. Gluon Networ= ks=20 has a seven-member board which includes investor representatives David Brit= ts=20 of J.P. Morgan and Tom McConnell of New Enterprise Associates. The company = is=20 also backed by the Texas Pacific Group.=20 =09=09http://www.gluonnetworks.com =09=09 =09=09 =09=09Enterprise Security Firm Solsoft Names New Chairman and CEO=20 =09=09mail? top =09=09 =09=09 MOUNTAIN VIEW, Calif. (VENTUREWIRE) -- Solsoft, a provider of a mana= gement=20 system for enterprise security, said it named Robert de Monts as chairman a= nd=20 CEO. Mr. de Monts previously served as president and COO of BoostWorks, an= =20 Internet infrastructure software company. He replaces Victor C. Langford, w= ho=20 was promoted from president and chief operating officer last October. A=20 company spokesperson said Mr. Langford has joined Avaya, a Lucent spinoff,= =20 but remains a large shareholder of Solsoft. The company is backed by Carlyl= e=20 Internet Partners Europe, Intel Capital, Cita, Innovacom-Technocom, Societe= =20 Generale Asset Management, Sofinnova Partners, Vantech, and Viventures.=20 =09=09http://www.solsoft.com =09=09 =09=09 =09=09Corechange Names Charles F. Kane President =09=09 mail? top =09=09 =09=09 BOSTON (VENTUREWIRE) -- Corechange, a provider of e-business access = software=20 for deploying portals, said it named Charles F. Kane as president of the=20 company. Mr. Kane joined Corechange as COO and CFO, and will continue to=20 serve in those positions. He replaces Corechange founder and CEO Ulf Arnetz= ,=20 who has been named chairman of the board of directors and remains CEO. Mr.= =20 Arnetz replaces Martin Hart as chairman, who will remain on the board. Prio= r=20 to joining Corechange, Mr. Kane served as vice president and CFO of Ardent= =20 Software. Earlier this month, Corechange announced it raised a $25 million= =20 Series C round led by UBS Capital Americas that included new investors Exel= on=20 Capital Partners, Nortel Networks, and SG Cowen Ventures, as well as previo= us=20 investors ABN AMRO Private Equity and HarbourVest Venture Partners. =09=09http://www.corechange.com =09=09 =09=09 =09=09InfoImage Appoints Thomas Niccoli as COO, President =09=09 mail? top =09=09 =09=09 PHOENIX (VENTUREWIRE) -- InfoImage, which provides enterprise decisi= on=20 software, said Thomas Niccoli has joined as president and the company's fir= st=20 chief operating officer. CEO Randy Eckel had held those responsibilities=20 before Mr. Niccoli's appointment. Prior to InfoImage, Mr. Niccoli founded a= nd=20 served as managing partner for the USWeb office in Phoenix. He also held=20 senior positions at Xantel and ComputerLand. He was introduced to Mr. Eckel= =20 by a mutual associate. InfoImage has raised $38 million to date from Boston= =20 Millennia Partners, Geo Capital, Global Technology Group, meVC Draper Fishe= r=20 Jurvetson, Microsoft, National Bank of Kuwait, and Tudor Investment=20 Corporation.=20 =09=09http://www.infoimage.com =09=09 =09=09 =09=09Knowledge Management Firm QED Solutions Names President =09=09 mail? top =09=09 =09=09 TYSONS CORNER, Va. (VENTUREWIRE) -- QED Solutions, which provides so= ftware=20 platforms that support data conversion, cleanup, coding, training, and=20 process development for drug safety information, said Richard B. Toren has= =20 joined the company as its first president. Mr. Torens, who takes over some= =20 duties from CEO and chairman Victor Gogolak, was introduced to QED by searc= h=20 firm J. Robert Scott. As president, Mr. Torens will focus on business=20 development, product development, and expanding database capabilities. The= =20 company is backed by Westport, Conn.-based Oxford Bioscience Partners. =09=09http://www.qedrx.com =09=09 =09=09 =09=09 vc fund news=20 =09=09? =09=09Woodside Investing On An Upswing Despite Market Woes =09=09 mail? top =09=09 =09=09 REDWOOD SHORES, Calif. (VENTUREWIRE) -- At a time when many venture = firms=20 are slowing the pace of investing, Redwood Shores, Calif.-based Woodside Fu= nd=20 is looking to invest more aggressively. According to Woodside Fund principa= l=20 Daniel H. Ahn, the firm is shooting for eight new deals this year, two more= =20 than usual. "We're investing like gangbusters," Mr. Ahn said. While many= =20 firms have hit the brakes when it comes to new deals, in part because they'= re=20 busy mending weak investments, Mr. Ahn believes now is the best time to buy= =20 because fewer investors means lower valuations. "When everyone is buying,= =20 everyone bids up prices and that's not the time to make deals," he said.=20 Woodside, which has made four new investments this year, is close to closin= g=20 on two new deals, and is in the process of examining two others. Mr. Ahn=20 would not comment on the new investments, only to say they involved compani= es=20 in the semiconductor and networking spaces. The companies Woodside has=20 invested in this year include TrueSAN Networks, a San Jose, Calif.-based=20 provider of enterprise storage network services; Milpitas, Calif.-based=20 General Nutronics, a developer of multi-petabit optical switches; and San= =20 Francisco-based Intelligent Markets, a maker of trading platforms for=20 financial institutions. In other developments at Woodside, Mr. Ahn said all= =20 the firm's limited partners have agreed to reinvest in its next fund, which= =20 Woodside expects to raise early next year. "They're all re-upping between o= ne=20 and two times as much," he said. Woodside raised a $135 million fund in Apr= il=20 2000 and has about one-third remaining, Mr. Ahn said.=20 =09=09http://www.woodsidefund.com =09=09 =09=09 =09=09Pakistani Firm KASB TechVentures to Close Down in June =09=09 mail? top =09=09 =09=09 LAHORE, Pakistan (VENTUREWIRE) -- KASB TechVentures, an incubator an= d=20 early-stage venture capital unit, will close its doors next month, accordin= g=20 to the venture fund's chief executive officer, Altaf Khan. The company was= =20 started by Pakistani investment firm Khadim Ali Shah Buhari & Co. this past= =20 autumn. In a company statement Mr. Khan said that its investor has=20 "terminated the money supply" rather than waiting for returns from an IT=20 remote access initiative. The incubator had planned to focus on Pakistani= =20 businesses in the infrastructure, networking, software, hardware, Internet,= =20 telecommunications, and financial service sectors, with investments of=20 between $100,000 and $1 million in portfolio companies. Khadim Ali Shah=20 Buhari & Co. could not be reached for comment. =09=09http://www.kasbtv.com =09=09 =09=09 =09=09Southern Capitol Partners with State-Funded Biotech Center =09=09 mail? top =09=09 =09=09 RESEARCH TRIANGLE PARK, N.C. (VENTUREWIRE) -- Southern Capitol Ventu= res, a=20 Research Triangle Park, N.C.-based venture capital firm, said it has formed= a=20 partnership with North Carolina Biotechnology Center, a state-funded=20 biotechnology research and development center. Ben Brooks, the founder and= =20 managing director of Southern Capitol, said his firm will have access to NC= =20 Biotechnology Center's resources, including its management expertise. Throu= gh=20 the partnership, Southern Capitol will receive $100,000 towards a $20 milli= on=20 fund it is planning to close by November. Southern Capitol, which was forme= d=20 in December of 2000, invests in early-stage companies, focusing 60% of its= =20 investments on information technology companies and 40% on biotechnology. T= he=20 company has invested in branded e-mail technology firm FullSeven=20 Technologies, its first and only investment to date. Southern Capitol is al= so=20 an investor in The Atlantis Group, an early-stage venture capital firm.=20 =09=09http://www.southcapitalventures.com =09=09 =09=09 =09=09 vc personnel=20 =09=09? =09=09Ex-Pequot Capital VP Joins Partech as Portfolio Manager =09=09 mail? top =09=09 =09=09 SAN FRANCISCO (VENTUREWIRE) -- Partech International, a venture capi= tal=20 firm, announced that Kevin Carrington has joined the firm as a portfolio=20 manager for its $130 million AXA U.S. Growth Fund. Prior to joining Partech= ,=20 Mr. Carrington was a vice president at Pequot Capital Management, where he= =20 focused on enterprise software and technology services. Partech focuses on= =20 expansion and later-stage investments in Web services, e-business=20 infrastructure software and services, communications software and services,= =20 and collaborative vertical services and products. =09=09http://www.partechvc.com =09=09 =09=09 =09=09company index =09=09top =09=09 =09=09Asimba, Asimba, Axerra Networks, Bernina Biosystems, Bernina Biosyste= ms,=20 BitFlash, Boxerjam, ChipData.com, Chordiant Software, CommerceFlow, Converg= e,=20 Core Networks, Core SDI, Core SDI, Corechange, Corechange, cPower, cPower,= =20 CryoCor, Delphi Communication Systems, DigitalMoJo, eKit.com, Elagent,=20 Encelle, Esterel Technologies, Esterel Technologies, Exteriority, focusCORE= ,=20 focusCORE, Gluon Networks, Gluon Networks, Gluon Networks, Hookt.com,=20 Hookt.com, InfoImage, InfoImage, InfoTalk, InfoTalk, iSovia, IT Factory, IT= =20 Factory, KASB TechVentures, Koch Ventures Group, Metastorm, Metastorm,=20 Nallatech, Nerve Wireless, NetByTel, NETdelivery, NetSales, Newtek Capital,= =20 Newtek Capital, NotifyMe Networks, octopus.com, Optimight Communications,= =20 Outstart, Partech International, Partech International, Partech=20 International, Pelago Networks, Platform.net, Platform.net, Proteus,=20 PurpleYogi, QED Solutions, QED Solutions, Real Media, Real Media, Real Medi= a,=20 Riptech, Seek Communications, Seek Communications, Solsoft, Solsoft, Solsof= t,=20 Sonik Technologies, South Capital Ventures, South Capital Ventures, Spotwav= e=20 Wireless, Spotwave Wireless, StarCite, StockHouse Media, Trendium, vSimplif= y,=20 vSimplify, Vytek Wireless, Woodside Fund, World Wide Packets=20 =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/register.asp =09=09 =09=09 =09=09 =09=09investor index =09=09top =09=09 =09=09Accenture Technology Ventures, Accenture Technology Ventures, Acer Te= chnology=20 Ventures, Acer Technology Ventures, Advanced Capital Europe, Advanced Capit= al=20 Europe, Allen & Buckeridge, AMCF, AMCF, Amwin Management, Amwin Management,= =20 Belgian Fonds Rendex, Belgian Fonds Rendex, BioM, BioM, CDC Innovation, CDC= =20 Innovation, Child Health Investment, Coastal Growth Partners, Connecticut= =20 Innovations, Connecticut Innovations, Cordova Ventures, Earlybird, Earlybir= d,=20 Eno River Capital, Galileo Partners, Galileo Partners, Hibernia Capital=20 Partners, High Tech Beteiligungen, High Tech Beteiligungen, HSBC Private=20 Equity Asia, HSBC Private Equity Asia, imGO, imGO, Intel Capital, Intel=20 Capital, Intel Capital, Intel Capital, Intersouth Partners, Koerner Capital= ,=20 Lexam Capital, Lexam Capital, Macquarie Technology Ventures, Macquarie=20 Technology Ventures, North Carolina BioScience Fund, North Carolina=20 Enterprise Fund, Pegasus Venture Capital, Pegasus Venture Capital, Royal Ba= nk=20 of Canada Capital Partners, Skandia Innovation U.S., Skandia Innovation U.S= .,=20 Walden International Investment Group, Walden International Investment Grou= p,=20 Yahoo!, Yahoo! =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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