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VENTUREWIRE --- Monday, June 12, 2000 ====================================================== Private Company Business News ------ Published Daily by Technologic Partners ------- http://technologicpartners.com ====================================================== Top Stories: o Boston Millennia Closes Second Fund at $410 Million o Amadeus Capital Partners Raises GBP 100 Million for New Fund o Moreover.com Raises $21 Million in First Institutional Round o eToys Acquires eParties For $1.6 Million in Stock o Fiber Optic Component Designer Raises $55 Million Series A o Homepage.com Raises $48 Million Mezzanine Round |||||||||||||||||||| Advertisement |||||||||||||||||||| Event: THE BASICS OF B2B - AN INTRODUCTION TO NET MARKETS Wed. June 21, 2000 * 6pm-9:30pm * Palo Alto, CA (Palo Alto Hills Golf & Country Club) An interactive forum designed for B2B investors, executives and entrepreneurs who want the latest information on pressing issues facing B2B Internet Marketplaces. Panelists include: Tim Clark - Senior Analyst, Jupiter Communications; Siva Kumar - Co-founder, Impresse; Alex Slusky - Managing Partner, Vector Capital; Mark Jensen - Exec. VP, i2; Greg Olsen - CTO, Extricity; Nick Solinger -Product Marketing, Ariba Register at: http://www.tsunamiindia.com Phone: 650-814-8627 E-mail: info@tsunamiindia.com ||||||||||||||||||||||||||||||||||||||||||||||||||||||| Also in This Issue: New Money: o Education Web Site Zooba Announces $6 Million First Round o Risk Management Service Provider Launches, Gets $8.2 Million o E-commerce Software Provider Gets $20 Million in First Round o Film & TV Show Marketplace Raises $4.8 Million Round One o Government Internet Services Firm Gets $23 Million, Launches o Printing E-Procurement Service Raises $3.5 Million Series A o Ridgewood Names New Investors in Orchid Lightwave's Series A o Sagemark Funds Linux Application Developer's First Round o Business Application Provider Raises $500,000 in Series A o High-Speed Internet Firm Raises $1.65 Million in Seed Funds o Internet Music Marketing Company Gets $500,000 Seed Funding o Internet Incubator iSherpa.net Launches With $10 Million o Ignition Leads Wireless Co. Etrieve's $13 Million Round Two o Data Search Software Firm Gets $8.5 Million in Second Round o Navitrak Buys 19.9% of Topographic Map Firm For $1 Million o Testing Systems Firm Gets $3 Million Series E, New Name New Products: o Business.com Launches Business Search Engine and Directory M&A: o Three Regional Telecom Firms Merge to Form Elantic o eHolding Merges With Swedish Software Game Developer New People: o Recruiting Firm MorganWorks.com Names Board Chair, New CEO o E-Commerce Software Firm HipHip Names Attorney to CEO Post o Broadband Firm Nupremis Appoints Company Co-founder as CEO VC Fund News: o eSouk Confirms Elimination of 15 Member Incubation Staff VW Corrections: o Edventions o Namezero |||||||||||||||||||| Advertisement |||||||||||||||||||| This week in ComputerLetter Where It's At: Now that many wireless communications networks know where we are, the stage is set for location-based commerce startups Subscribe at http://www.tpsite.com/tp/cl/default.htm ||||||||||||||||||||||||||||||||||||||||||||||||||||||| ======= Top Stories ======= o Boston Millennia Closes Second Fund at $410 Million BOSTON -- Boston Millennia Partners said the final closing of its second fund, Boston Millennia Partners II, increased the capital of the fund by $110 million. The fund closed at $410 million. The fund's partners are institutional investors from 20 countries as well as the U.S. The company will make initial commitments of $5 million to $10 million in 30 to 35 companies in the telecommunications, information technology and software, and life sciences industries. To date the fund has invested in thirteen companies including Deltagen, Optical Solutions, Cirqit, V-Span, InfoImage, NeoWorld, Politzer & Haney, Netifice Communications, YankeeTek, and Dawntreader. http://www.millenniapartners.com/ _____________________________________________ o Amadeus Capital Partners Raises GBP 100 Million for New Fund LONDON -- Amadeus Capital Partners, which invests in early-stage technology companies, said it secured GBP 100 million ($150.7 million) in its first closing of its Amadeus II fund, which it launched in April. Amadeus Capital Partners expects the fund to close completely by the end of 2000. The new fund will focus on investing in early-stage European technology companies. http://www.amadeuscapital.com/ _____________________________________________ o Moreover.com Raises $21 Million in First Institutional Round LONDON -- Moreover.com, a free online news aggregator, said it raised $21 million in its first institutional round of funding. The round was co-led by Reuters Venture Capital, the investment arm of Reuters Group, and Atlas Venture Partners. Other investors in the round include Wit Capital Group, and Advance.Net, an investment arm of Advanced Publications, parent company of Conde Nast. The company said the funding will be used to further develop technology, fund deals with search engines, develop multilingual products, and expand the company's US office. David Lockwood, co-chief executive officer of Reuters Venture Capital, Ed Sim, of Wit Capital Group, and Jeff Jarvis, of Advance.Net, will all take seats on the company's board of directors as a result of the funding. The company raised its seed funding from investors including Atlas Venture Partners, Richard Carter, of Chase Capital Partners, and executives from Amazon.com. http://www.moreover.com/ _____________________________________________ o eToys Acquires eParties For $1.6 Million in Stock SANTA MONICA, Calif. -- eParties, a party-goods and planning site, was acquired by eToys in a stock acquisition valued at $1.6 million. Under the agreement, eToys will purchase the eParties name and certain proprietary technology, including software that allows for customization and personalization of party planning. eToys also said that eParties' chief executive, David Haddad, will join the company as a senior vice president. The company was incubated by eCompanies, a Santa Monica based incubation firm. http://www.eparties.com/ _____________________________________________ o Fiber Optic Component Designer Raises $55 Million Series A LOS GATOS, Calif. -- Southampton Photonics, which designs and develops fiber optic components, said it raised $55 million in its first round Series A funding. The round was led by Quantum Technology Partners. Amadeus Capital Partners, Interwest Partners, and Sevin Rosen also participated in the financing. The company said it will use the financing to create 200 high-tech jobs during the next 18 months in the UK and will also establish design, production and sales facilities in California where it expects to employ an additional 250 staff by the end of 2002. Representatives from each of the company's investors will take seats on the board of directors. http://www.southamptonphotonics.com/ _____________________________________________ o Homepage.com Raises $48 Million Mezzanine Round LOS ANGELES -- HomePage.com, a supplier of personalized Web page applications for e-businesses, said it raised $48 million in a mezzanine financing round led by idealab! Capital Partners. Other investors in the round included new investors Jump Investors and Robertson Stephens affiliates, as well as existing investors J. & W. Seligman, idealab! Capital Partners and Moore Capital Management. The company said the funding will be used for further growth and international expansion. http://www.homepage.com/ ======= New Money ======= o Education Web Site Zooba Announces $6 Million First Round BOSTON -- Zooba.com, a direct marketing infomediary that provides services to businesses and consumers, said it raised $6 million in its first round of funding from sole investor Europe@Web. The round closed in December of last year. Europe@Web has two representatives on Zooba.com's board of directors, including Alex Nigg, senior vice president of its U.S. division. The company will use the funds for technology development, marketing, and company expansion. Zooba.com is raising its second round of funding, which it hopes to close in July for between $10 million and $15 million. Zooba.com markets material for writers and publishers through its free Web services, including email messages and product recommendations. http://www.zooba.com/ _____________________________________________ o Risk Management Service Provider Launches, Gets $8.2 Million NEW YORK -- Kiodex, an online provider of risk management services for the commodities markets, announced itself and a $8.2 million first funding. The company will provide risk management services, an automated order-matching system, and consulting services. The company raised its first funding from individual investors. R. Martin Chavez, former director and global head of energy derivatives at Credit Suisse First Boston and Credit Suisse Financial Products, serves as the company's chief executive officer. http://www.kiodex.com/ _____________________________________________ o E-commerce Software Provider Gets $20 Million in First Round SANTA CLARA, Calif. -- Webango, a business-to-business electronic commerce software provider for the procurement divisions of large and medium-sized businesses, said it closed its first round of financing with $20 million. Battery Ventures and Concord Ventures led the round. Redwood Ventures, which provided early seed funding, also participated in this round. The company plans to use the funding for growth. In April, John Shoemaker, vice president and general manager of Sun Microsystems' enterprise desktop and server systems, joined Webango's board of directors. http://www.webango.com/ _____________________________________________ o Film & TV Show Marketplace Raises $4.8 Million Round One LOS ANGELES -- Tivix.com, an online resource for buyers and sellers of film and television programs, said it received $4.8 million in its first round of financing. Red Rock Ventures led the round and was joined by DS Capital, Garage.com, and The Sapling Foundation. The company plans to use the funding for technology development and to secure partnerships. http://www.tivix.com/ _____________________________________________ o Government Internet Services Firm Gets $23 Million, Launches CHICAGO -- Netgov.com, a provider of Internet services to local governments and government institutions, said it raised $23 million in its first institutional, Series B round of funding. The company also announced its launch. The funding round was led by Minotaur Capital Management and included Blue Chip Venture Company, Gazelle Tech Ventures, and Softbank Venture Capital. The company will use the funds for its general operations, including technology development and sales and marketing. Netgov.com was formed through a merger of former Indianapolis Mayor Stephen Goldsmith's eGov Solutions and Minotaur Capital Management founder William A. Lederer's AX.com. Mr. Goldsmith is chairman of Netgov.com and Mr. Lederer is vice chairman. The company expects to have its Internet government products and services available by the third quarter of 2000. Netgov.com develops technology to allow faster interaction between a government and its constituents. http://www.netgov.com/ _____________________________________________ o Printing E-Procurement Service Raises $3.5 Million Series A MINNEAPOLIS -- Four 51, an online procurement service for buyers, suppliers, and distributors of print materials, said it raised $3.5 million in its Series A funding. Investors in the round include Five Points Capital, Monarch Capital Partners, Rembrandt Venture Partners, RS Investment Management, and United Capital Group. The company said the financing will fund additional technology development, sales, and marketing for the company's planned expansion. Paul McNulty, of Five Points Capital, and Bennie Bray of Monarch Capital Partners, will serve on the company's board of directors. http://www.four51.com/ _____________________________________________ o Ridgewood Names New Investors in Orchid Lightwave's Series A RIDGEWOOD, N.J. -- Ridgewood Capital said two new institutions invested in the Series A Funding of Orchid Lightwave Communications. Global Catalyst Partners will invest $1 million and Vertex will invest $400,000 in Orchid Lightwave, bringing the company's total Series A funding to $4.4 million. Eliezer Manor of Global Catalyst Partners will join the company's board of directors. Orchid Lightwave Communications will use the funds for research and development and for personnel expenses. Orchid Lightwave Communications is a manufacturer of fiber optic components based in Silicon Valley, with a wholly owned research and development subsidiary in Israel. http://www.ridgewoodcapital.com/ _____________________________________________ o Sagemark Funds Linux Application Developer's First Round HOUSTON -- The Sagemark Companies, a publicly traded financial services company, said it made an equity investment in Bynari, a developer of Linux-based applications for enterprise and consumer marketplaces. Sagemark Capital, in which Sagemark holds a 61.5% interest, was the only participant in the round, the first institutional funding for Bynari. Sagemark president Richard Young will join Bynari's board of directors. The company will use the funds for product sales and marketing. The company is launching products that enable UNIX and Linux desktops, workstations, and servers to communicate with Microsoft Exchange enterprises. Bynari has also received backing from individuals. http://www.bynari.com/ _____________________________________________ o Business Application Provider Raises $500,000 in Series A PITTSBURGH, Pa. -- WiredOrg.com, which provides an infrastructure of business applications, said it raised a $500,000 Series A round of seed funding. The round was funded by individuals. The company will use the funding for launching its beta site, hiring additional staff, and for building a second Web site. The company is building an Internet infrastructure comprised of interconnected intranets, extranets, enterprise tools, and marketplaces. WiredOrg.com has been incubated by iventurelab.com, which holds a minority interest in the company. http://www.wiredorg.com/ _____________________________________________ o High-Speed Internet Firm Raises $1.65 Million in Seed Funds NEW YORK -- Global Broadband, an integrated communications provider focused on high-speed Internet access and voice services, said it raised $1.65 million in its seed round of funding. The company will use the funds to recruit staff for senior management positions, develop services, and for marketing. The company will soon raise a second round of funding for infrastructure development and for marketing in New York City, Buffalo, and Boston, and expects to expand in other areas of the U.S. by 2001. http://www.glbbinc.com/ _____________________________________________ o Internet Music Marketing Company Gets $500,000 Seed Funding SAN FRANCISCO, CA, -- Sherpa Ears, whose software can be used for music promotion and sales on the Web, said it received $500,000 in seed capital from Fujipacific Music/Fuji TV and other investors. The seed funds will be used to develop the firm's applications and Website. MusicCliques, Sherpa Ears' technology, uses database architectures and social network analytics to promote and distribute music for sale. The system enables the company to track how users share and recommend music to friends on the Internet. Sherpa Ears also receives services and assistance from Scient as a part of its accelerator program. Scient owns a 2.5% stake in Sherpa Ears. The company will make announcements about its board of directors in the near future. http://www.sherpaears.com/ _____________________________________________ o Internet Incubator iSherpa.net Launches With $10 Million DENVER -- iSherpa.net, a business incubator focused on wireless start-ups, announced its launch. The company closed a first round of financing for $10 million and is in the process of raising additional funds. The company offers capital, office space, and business, legal, financial, technical, and recruitment advice to its portfolio companies. The managing partners of the firm are Vipanj Patel, previously an attorney with Morris, Manning & Martin, and Gary Rohr, a co-founder and principal of Stonebridge companies. iSherpa.net also launched its first portfolio company, iSovia, a wireless business-to-business ASP, with an investment of $1.65 million. http://www.isherpa.net/ _____________________________________________ o Ignition Leads Wireless Co. Etrieve's $13 Million Round Two PORTLAND, Ore. -- Etrieve, whose service enables users to use their wireless phone to listen and respond to their e-mail while out of the office, said it raised $13 million in a second round led by new investor Ignition, the recently created holding company formed by former Microsoft and McCaw Cellular executives to invest in wireless Internet companies. This is Ignition's first investment as a company. Other investors in the round include returning investors Timberline Ventures and Venture Partners, as well as new investors Madrona Venture Group and Softbank Venture Capital. Today, etrieve launched its first product etrieve M3 (mobile message management), which enables consumers to prioritize e-mail based on specific preferences. The service will page users when high priority messages arrive, and deliver the information by voice, Internet, or fax. Jonathan Roberts, managing director of Ignition, will join etrieve's board. http://www.etrieve.com/ _____________________________________________ o Data Search Software Firm Gets $8.5 Million in Second Round SAN MATEO, Calif. -- nQuire Software, developer of Internet-based software that enables users to search and analyse corporate data, said it raised $8.5 million in second round funding. The funds will be used for sales, marketing, hiring, product development, and other purposes. Participants in the round include Donald L. Lucas, St. Paul Venture Capital, Doll Capital Management, Telos Venture Partners, and the law firm of Wilson Sonsini Goodrich & Rosati. All the investors have previously invested in the company. http://www.nquire.com/ _____________________________________________ o Navitrak Buys 19.9% of Topographic Map Firm For $1 Million TORONTO, Ontario -- Navitrak International, a publicly traded wireless navigational technology company, said it completed an agreement to acquire 19.9% of Maps a la carte and its Web site, TopoZone.com, for approximately $1 million in cash. The terms of the deal require an initial payment by Navitrak of $200,000 and an additional $800,000 at a future date. Also, the companies have entered into a strategic agreement under which they will work together to develop the online topographic mapping business and related software applications and products. Maps a la carte will license Navitrak's WHEREver software for resale and Navitrak will modify the software to read data from TopoZone.com. One representative from Navitrak will join Maps a la carte's board. http://www.topozone.com/ _____________________________________________ o Testing Systems Firm Gets $3 Million Series E, New Name EDEN PRAIRIE, Minn. -- TestQuest, a provider of functional testing systems for information appliances formerly known as B-Tree, said it received $3 million in its sixth round, Series E funding. Norwest Venture Partners and RRE Ventures were the sole investors in the round. The company said the funding will be used for sales and marketing, and doubling the size of its staff. Norwest Venture Partners is the lead investor in B-Tree, along with Essex Venture Partners, J.F. Shea, Pathfinder, RRE Investors, and the Travelers. http://www.testquest.com/ ======= New Products ======= o Business.com Launches Business Search Engine and Directory SANTA MONICA, Calif. -- Business.com, which provides a directory of Internet businesses, said it launched its Internet business directory and search engine, the first of three phases of the company's online launch. Business.com expects to launch its news service and press digests in its second phase, and launch its profiles of industries and companies in its third phase. The company plans the completion of the three-part launch to finish by the end of June. Business.com is incubated by ECompanies. http://www.business.com/ http://www.ecompanies.com/ ======= M&A ======= o Three Regional Telecom Firms Merge to Form Elantic RICHMOND, Va. -- Three competitive local exchange carriers said they will merge to form elantic. Cavalier Telephone, of Richmond, Va., Marlboro, Mass.-based Conversent Communications, and Florida Digital Network, of Orlando, Fla., said they will form an integrated communications provider that will serve consumers from Maine to Florida. The financial terms were not disclosed. Upon completion of the merger, elantic will service more than 67,00 local access lines. Brad Evans, president of Cavalier, will become chairman and head the mid-Atlantic group; Robert Shanahan, president and COO of Conversent, will serve as president of the Northern region; and Michael Gallagher, president and CEO of Florida Digital, becomes chief executive officer and heads the Southern group. Investors in the company include M/C Ventures, and individual investors Brad Evans, Bob Fanch of Fanch Communications, and Clark McLeod, chairman and CEO of McLeod USA. Elantic will maintain offices along the eastern seaboard. http://www.elantic.com/ _____________________________________________ o eHolding Merges With Swedish Software Game Developer LONDON -- eHolding, a European holding company which owns and operates media, entertainment, and technology consulting firms, said it merged with software game developer Computerhouse. Computerhouse shareholders will receive 40% of the shares of eHolding for 100% of the shares of Computerhouse. The exact value of the deal was not disclosed. Colin Bower, chief executive officer of eHolding, will remain in that position following the merger. Gudleiv Bjorklund, chairman of eHolding, and Mr. Bower will both hold seats on the new board of eHolding. Three representatives of Computerhouse will also take seats on the new company's board of directors. Computerhouse is backed by Telenor Venture, which will remain a significant shareholder in the new entity. eHolding's companies include IT Media, Telecom Revy, and Reply. http://www.computerhouse.com/ http://www.wapland.com/ ======= New People ======= o Recruiting Firm MorganWorks.com Names Board Chair, New CEO CHICAGO -- MorganWorks.com, a Web-based employment recruiting company that outsources its software to other Web sites, said it promoted its founder and chief executive officer, Bernard Layton, to the newly created position of chairman of the board. The company also promoted Rick Salvadore, current president and COO, to president and chief executive officer. Mr. Salvadore is also a member of the board. Prior to joining MorganWorks.com, Mr. Salvadore was a senior executive at art.com. MorganWorks.com also launched MorganHires, which helps managers by matching candidate skills with an employer's specific needs. The company closed a $5 million first round of financing in January from Minotaur Partners. http://www.morganworks.com/ _____________________________________________ o E-Commerce Software Firm HipHip Names Attorney to CEO Post MIAMI -- HipHip Software, a developer of Internet commerce software products for small and medium-sized companies, said it named Richard C. Bulman as its new chief executive officer. Mr. Bulman was most recently a corporate technology attorney with Kirkpatrick & Lockhart. He was also counsel for IVAX, American Lawyer Media, Diversified Communications Industries, and VHC. He also held positions with the New York State Senate and the New York State Department of Economic Development. Mr. Bulman succeeds co-founder and former chief executive officer Melanie Shannon, who remains with the company as chief marketing officer. HipHip Software has received one $600,000 bridge loan from individuals. The company is seeking a $10 million round of funding from individuals that it expects to close within the next two months. http://www.hiphip.com/ _____________________________________________ o Broadband Firm Nupremis Appoints Company Co-founder as CEO BOULDER, Colo. -- Nupremis, which develops broadband applications, said it named Charles Cadle as chief executive officer. Mr. Cadle, a co-founder of the company, was previously the project leader for Callahan Associates International's non-cable and Internet business development activities. Last week, the company raised $25 million in its first round of funding. The round was raised from Angelo Gordon & Co., The Edward P. Bass Group, Callahan Associates, Compaq Computer, and Investcorp. Callahan Associates led the round. http://www.nupremis.com/ ======= VC Fund News ======= o eSouk Confirms Elimination of 15 Member Incubation Staff LONDON -- eSouk, an incubator and investor in Internet companies, confirmed reports that it is cutting its staff from 22 to 7. The company said it will no longer incubate companies and that the 15 eliminated jobs comprised the firm's incubation staff. The company cited structural changes in the market as the cause of this change. The firm said that small and mid-sized UK incubators in particular have been adversely affected by the market changes. eSouk, which recently raised a $10 million second round, will continue to invest in Internet startup companies. eSouk's portfolio companies were 123immo, NetImperative, Nutravida.com, and Uvine.com. http://www.esouk.com/ ======= VW Corrections ======= o Edventions NEW YORK -- An item in Thursday's VentureWire about Edventions' new funding contained an incorrect URL for the company. The company's URL is http://www.edventions.com. _____________________________________________ o Namezero NEW YORK -- Due to incorrect information from namezero, a story in last Wednesday's VentureWire concerning the firm's Series B funding identified Arcadian Venture Partners and Whitman Capital as previous investors in the company. Arcadian and Whitman are new investors in namezero. |||||||||||||||||||| Advertisement |||||||||||||||||||| Follow the money. If your job depends on knowing where private capital is coming from, where it's going and why, VentureFinance is for you. Every month, with summaries of deals, analysis of trends, and forward-looking insights on what's about to happen. From Technologic Partners, following venture investing since 1985. VentureFinance:Capital for Growing Companies http://www.tpsite.com/tp/vf/default.html ||||||||||||||||||||||||||||||||||||||||||||||||||||||| SEND TO A FRIEND To subscribe to VentureWire, tell your friends and colleagues to go to: http://www.venturewire.com/register/vw This copy of VentureWire may be distributed freely, provided that the distribution is without charge, that the issue is distributed complete and unaltered, and that all copies retain the Technologic copyright notice. _____________________________________________ TO SUBSCRIBE go to: http://www.venturewire.com/register/vw To CHANGE your address, send your old and new e-mail address to: change@venturewire.com To UNSUBSCRIBE, send e-mail to: listoff@venturewire.com Send COMMENTS, QUESTIONS, or NEWS ITEMS to: editor@venturewire.com Entire Contents Copyright 2000 by Technologic Partners VentureWire is a Service Mark of Technologic Partners =====================================
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