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VENTUREWIRE --- Wednesday, June 7, 2000 ====================================================== Private Company Business News ------ Published Daily by Technologic Partners ------- http://technologicpartners.com ====================================================== Top Stories: o H&Q Asia Pacific Closes New $750 Million Fund o CacheFlow Acquires Springbank Networks For $180 Million o FatBrain Spinoff MightyWords Raises $36 Million First Round o WR Hambrecht Gets $83 Million From Amex and Others o Morgan Stanley Senior Analyst Leaves to Start B2B Company o Telecom Company American Broadband Gets $200 Million |||||||||||||||||||| Advertisement |||||||||||||||||||| Announcing Internet Outlook 2000: A business conference from Technologic Partners What's Ahead for Electronic Commerce? Get the answers from industry experts and senior executives on crucial issues: o What will it take to get the next wave of consumers online? o How will established brick-and-mortar brands fare on the Web? o Will privacy issues stymie effective marketing tactics? o Can technology make a difference for the customer experience? September 11 and 12, San Francisco Airport Marriott For more information and registration, visit our Web site: http://www.tpsite.com/tp/conf/io2000/default.html ||||||||||||||||||||||||||||||||||||||||||||||||||||||| Also in This Issue: New Money: o Broadband Firm Uses $25 Million First Funds for Acquisitions o B2B Market Software Developer Gets $6 Million Series A o Charity Enabler GivingCapital Gets $4.5 Million First Round o Incubator Announces $1 Million iNoize Funding, Firm Launches o Internet Data Integration Firm Gets $13.8 Million Round One o Online Applications Company Fullscope Gets $4 Million Seed o Apparel Marketplace ThreadExchange.com Raises First Round o Debit Card For Downloads Company Gets $750,000 Seed Funds o Net Appliance Software Firm Raises First Institutional Round o PC and Internet Provider Takes $2 Million in First Round o Source of Salary Information Has $1.5 Million First Round o Space Video Stream Developer Holds $5 Million First Round o Urban Lifestyle Portal and B2B Service Raises Seed Funding o Web Publishing Automation Services Firm Closes Seed Round o $40 Million Third Round for Optical Network Equipment Firm o Brecis Communications Gets $20.5 Million o European Incubator, Protege, Secures $45 Million Round Two o Microprocessor Firm ARC Cores Gets $50 Million in New Funds o Religious Site Beliefnet Raises $20 Million in Second Round o Web-based Currency Firm Beenz Gets Raises $51.4 Million o $24 Million Second Round for ASP Eureka Broadband o Administrator for Online Marketplaces Gets $6.7 Million o DSL Firm AccessLan Communications Raises $35 Million Round o E-Security Software Company Gets $9 Million Second Round o meVC Invests $7 Million in Endymion Systems o Online Job Market Firm Takes $3 Million in its First Round o Optical Micro-Machines Gets $75 Million in Third Round Funds o Report: SupplyForce.com Raises $52 Million in Second Round o Zack Network Receives Investment, Names New Board Members o CyberStarts Invests $5 Million in Online Insurance Provider o E-Learning Company gForce Gets $16.5 Million Third Round o Free Domain Name Firm Namezero Raises $6.8 Million Series B o Music Portal Site Net4Music Raises $16 Million Third Round o Breakthrough Software Completes $8 Million in Second Round o Content Filter Firm Sageware Gets $13.5 Million Third Round o Design Automation Software Firm Gets $7 Million Third Round o Imperial Bank Invests $1.5 Million in Tonic Software o Norkom Technologies Raises $6 Million in Third Round o SPSS Makes $1 Million Strategic Investment in E.Intelligence o Tessera Raises $5 Million in Add-on Mezzanine Funds o Genesys Angelbridge Fund Invests $4 Million in uGetHeard o Residential Gateway Firm Closes $10 Million Fourth Round o $2.5 Million Third Round for Voice Recognition Software Firm New Products: o govWorks Forms E-Government Subsidiary for Latin America o Children's Content & Marketing Site Tykesville.com Launches o Health and Spirituality Site eSpirituality.com Launches o Online Movie Ticketing Firm Fandango Announces Itself M&A: o Bricsnet to Acquire E-Commerce Product Provider Viscomm o Canon Communications Acquires Online Supplier Database o Original Media Buys Financial Network, FallingShort.com New Directors: o Marketing Software Developer Names Cisco Exec to Board o Telicor Names Cisco Executive to Board o Optical Firm Kestrel Solutions Names Brocade CEO to Board o PC Software Firm DigitalSquare Names Two New Board Members o Human Resources Portal Adds Business Consultant to Board New People: o Internet Storage Company 3Ware Names New President & CEO o Online Retail Partners Names Investcorp Exec as New CEO o Promotional Material Provider Logowire Names Top Execs o Risk Management Firm OperationalRisk Names First President VC Fund News: o Q Funding Launches New Dallas-Based Incubator VC Personnel: o B2B Investor DigitalVentures Names New Managing Director o Bright Station Names Executive of Internet Venture Division o LaunchCenter 39 Names Ex-boo.com Director General Manager |||||||||||||||||||| Advertisement |||||||||||||||||||| This Week in COMPUTERLETTER Under Construction: Big money is betting that dozens of Web-based startups can help building contractors bid for jobs, management projects, and more. Subscribe at: http://www.tpsite.com/tp/cl/default.html ||||||||||||||||||||||||||||||||||||||||||||||||||||||| ======= Top Stories ======= o H&Q Asia Pacific Closes New $750 Million Fund PALO ALTO, Calif. -- H&Q Asia Pacific, a private equity investment company, said it closed its third fund, Asia Pacific Growth Fund III. At $750 million, the fund is the company's largest. It will focus on Internet infrastructure investment opportunities in the Asia Pacific region. Telephone 650-838-8037. _____________________________________________ o CacheFlow Acquires Springbank Networks For $180 Million SUNNYVALE, Calif. -- CacheFlow, a publicly traded company which provides technology to accelerate and manage the flow of online information, said it acquired Springbank Networks of Palo Alto, Calif. The stock transaction is valued at $180 million. Springbank will be integrated into CacheFlow and all employees of Springbank will relocate to CacheFlow headquarters. No management changes were announced. Springbank Networks has received financing from Sequoia Capital. http://www.cacheflow.com/ _____________________________________________ o FatBrain Spinoff MightyWords Raises $36 Million First Round SANTA CLARA, Calif. -- MightyWords, formerly an online publishing subsidiary of publicly traded FatBrain.com, said it received $36 million in funding in its first round of institutional funding. The round was led by Barnes & Noble.com, which contributed $20 million in exchange for a 30% stake in the firm. Vulcan Ventures contributed an additional $10 million and $6 million was raised from other investors including APV Technology Partners, Highland Capital Partners, and Millennium Technology Ventures. Vulcan Ventures will hold a 15% stake, Millennium Technology Ventures 4%, and both Highland Capital Partners and APV Technology Partners will hold 1.5% of the company. FatBrain.com will retain 23% of the company. Chris MacAskill, chief executive officer of MightyWords and founder and CEO of FatBrain, will serve as chairman of the MightyWords board of directors. Two representatives of Barnes & Noble.com, one representative from Vulcan Ventures, and one representative from Millennium Technology Ventures will take seats on the company's board of directors. Dennis Capovilla, the new chief executive officer of FatBrain.com, will also serve on the MightyWords board. The company said the funding will be used for system development and content acquisition as well as an $8.5 million payment to FatBrain.com as reimbursement for expenses incurred on behalf of the subsidiary over the past five months. http://www.mightywords.com/ _____________________________________________ o WR Hambrecht Gets $83 Million From Amex and Others SAN FRANCISCO -- WR Hambrecht, an online investment bank, said it received $83 million in Series C funding. American Express, Scudder Kemper Investments, Texas Pacific Group, Hikari Tsushin Capital, J.F. Shea Co., Crimson Ventures, Park Avenue Capital, epartners, American Century, and Instinet participated in the round. Instinet, American Century, and epartners are return investors. The company also said Clay Christensen joined its board. Mr. Christensen is a Harvard Business School professor and author of the book "The Innovator's Dilemma." http://www.wrhambrecht.com/ _____________________________________________ o Morgan Stanley Senior Analyst Leaves to Start B2B Company NEW YORK -- Rafael Bello, Morgan Stanley Dean Witter's senior Latin American banking analyst, said he is leaving the firm to launch a new company called BNB Capital. The company will develop and operate business-to-business exchanges. The exchanges will seek venture capital backing, a company spokesperson said. The company's first exchange will be an agricultural e-market, which will begin operating early this summer. http://www.bnbcapital.com/ _____________________________________________ o Telecom Company American Broadband Gets $200 Million PROVIDENCE, R.I. -- American Broadband, a Boston-based cable and telecommunications company, said it secured $200 million in financing. CIBC World Markets provided the company with $150 million in senior debt financing. $50 million in equity capital was received from Great Hill Partners. The company was co-founded by Great Hill in 1999. The company expects to use $170 million to construct an advanced communications network in Rhode Island. http://www.american-broadband.com/ ======= New Money ======= o Broadband Firm Uses $25 Million First Funds for Acquisitions BOULDER, Colo. -- Nupremis, which develops broadband applications, said it raised $25 million in its first round of funding, which it used to acquire three companies. The round was raised from Angelo Gordon & Co., The Edward P. Bass Group, Callahan Associates, Compaq Computer, and Investcorp. Callahan Associates led the round. Nupremis used the funding to complete the acquisitions of three companies in deals valued at a total of $52 million in cash and stock. The acquired companies were Cenera, an electronic business integrator and Web services company; Interware, a Hungarian ASP and the country's fourth largest ISP; and NewEraCom, which operates a broadband network in the Southeastern U.S. The acquired companies will act as offices of Nupremis in their respective regions. All senior management of the acquired companies will take management positions with Nupremis. The company's board consists of Douglas K. Bratton of The Edward P. Bass Group, David Roberts of Angelo Gordon & Co., Rick Dakin, formerly of Centera and president and COO of Nupremis, Chuck Cadle, chief executive officer of Nupremis, and three representatives of Callahan Associates including Bill Barker, company founder Richard Callahan, and another representative to be determined. http://www.nupremis.com/ _____________________________________________ o B2B Market Software Developer Gets $6 Million Series A NEWPORT BEACH, Calif. -- CommerceScout, which develops software for business-to-business Internet markets, said it raised $6 million in its Series A round of funding. Edgewater Funds and Weiss Peck & Greer each contributed $3 million in the round. Edgewater Funds partner Mark McManigal has been named to the board of directors. The company also said it named Bruce Frcek, chairman and CEO of Xcelerate, to the board. CommerceScout will use the funds for further portal development, sales, and partnership development. The company's software enables business-to-business market navigation, procurement, and decision support. CommerceScout expects to launch an industry-specific portal in the third quarter of 2000. http://www.commercescout.com/ _____________________________________________ o Charity Enabler GivingCapital Gets $4.5 Million First Round PHILADELPHIA -- GivingCapital, developer of a software application that helps nonprofit organizations receive and process online donations through their Web sites, said it raised $4.5 million in its first round of financing from private investors. The company plans to use the funding for sales and marketing, strategic partnerships, and product development. Noreen Harrington, David Holtzman, Jim Martin, Rich Masterson, and John Schotz, all individual investors who participated in this round, were named to the board of directors. The total number of board members is now eight. GivingCapital takes a percentage of the money collected using its fund-raising tool rather than charging non-profits a fee up-front. http://www.givingcapital.com/ _____________________________________________ o Incubator Announces $1 Million iNoize Funding, Firm Launches LEXINGTON, Ky. -- Incubator eCorporation made four announcements at the Silicon Central eConference. eCorporation announced that one of its portfolio companies, iNoize.com, raised $1 million in early-stage funding from SouthEast Interactive Technology Fund. iNoize.com will provide media content resources for multimedia professionals such as editors and content creators. iNoize.com is majority-owned by eCorporation and expects to launch this summer. The incubator also said it will launch the Silicon Central Angel Network. The new group will be collection of individual investors, venture capital firms, incubators, and providers of professional services that will invest in Internet companies in the so-called "Silicon Central" region of Kentucky, Tennessee, Ohio, Indiana, and Illinois. eCorporation also said it will partner with AF Kelly to launch Edulab, an Internet-based education network, and that it will launch TuneItIn.com, an online music provider. eCorporation is backed by SouthEast Interactive Technology Fund. http://www.ecorporation.com/ _____________________________________________ o Internet Data Integration Firm Gets $13.8 Million Round One PITTSBURGH, Pa. -- Cerebellum Software, which develops and markets Internet data integration products that link e-business applications with corporate data systems, said it raised $13.8 million in a first round funding led by Birchmere Ventures, with CEO Venture Fund participating. Ned Renzi, partner at Birchmere Ventures, will be added to Cerebellum Software's board of directors, which now stands at seven. The company will use the funding to expand its domestic and international operations. The company's product, Cerebellum, enables a development team to create and add real-time data integration into Web applications. http://www.cerebellumsoft.com/ _____________________________________________ o Online Applications Company Fullscope Gets $4 Million Seed ANN ARBOR, Mich. -- Fullscope, a provider of online applications and services, said it received $4 million in first round seed money. A group of investors, including Enterprise Development Fund, Marathon Fund, Scient, and Wakefield Group provided the financing. http://www.fullscope.com/ _____________________________________________ o Apparel Marketplace ThreadExchange.com Raises First Round PITTSBURGH -- ThreadExchange.com, an online sourcing exchange for the global apparel market, raised $5.5 million in Series A funding, according to lead investor Redleaf Group. Redleaf Group invested $4.8 of the company's $5.5 million round. Other investors in the round included garage.com, and individual investors. The company will use the funding for staffing and technology development, the Redleaf Group said. Mike Nelson of Redleaf Group will take a new seat on the ThreadExchange.com board of directors. ThreadExchange.com provides full-service sourcing to retailers, wholesalers, and importers. http://www.redleaf.com/ http://www.threadexchange.com/ _____________________________________________ o Debit Card For Downloads Company Gets $750,000 Seed Funds NEW YORK -- Downloadcard.com, which provides pre-paid debit cards for downloading all types of media from the Internet, said it raised $750,000 in seed funding from a group of strategic investors, including N2 Ventures, which agreed to incubate the company, and Dontel International, a manufacturer and distributor of pre-paid phone cards. A representative from N2 Ventures, Dontel, and Keefe, Bruyette & Woods, an investment banking firm that advises Downloadcard.com, will join the board of directors. The Web site is scheduled to launch at the end of June. Telephone 646-337-5885. _____________________________________________ o Net Appliance Software Firm Raises First Institutional Round SAN FRANCISCO -- MiddleSoft, a developer of a software platform for the Internet appliance market, said it raised an undisclosed amount in its first round of institutional funding. The round was led by BPI Capital and included JMI Equity Fund. BPI Capital managing director Hamilton F. Potter III will join the company's board of directors. MiddleSoft will use the funds for general working capital. The company is also backed by individuals. MiddleSoft's platform uses vector animation technology and integrates handwriting recognition, Web access, and e-mail. The company expects to launch its first product in August 2000. http://www.middlesoft.com/ _____________________________________________ o PC and Internet Provider Takes $2 Million in First Round RESTON, Va. -- FamilyPC.Net, which provides personal computers, Internet access, and other services for a monthly fee, said it raised over $2 million in its first venture round of funding from PSINet Ventures, the venture capital division of PSINet. The investment comes in the form of a services-for-equity agreement over a two year time frame. Richard Frizalone of PSINet will join FamilyPC.Net's board of directors. The company will use the funds for further development of products and services. FamilyPC.Net's services include computer training and support and a suite of Internet services. http://www.familypc.net/ _____________________________________________ o Source of Salary Information Has $1.5 Million First Round WELLESLEY, Mass. -- Salary.com, which provides online compensation information for individuals, business managers and human resource professionals, said it received $1.5 million in first round funding. The round was led by Lyric Capital with Ascendant Capital and individual investors participating. Terry Temescu of Lyric Capital, and Bob Stein of Ascendant Capital, were added to the company's board of directors. The appointments bring the total number of board members to four. The company will use the funding to hire personnel. http://www.salary.com/ _____________________________________________ o Space Video Stream Developer Holds $5 Million First Round STENNIS CENTER, Miss. -- AstroVision International, a developer of a video-streaming satellite system, said it raised $5 million in its first round of venture funding. The round was funded by Sofinov, a subsidiary of pension fund Caisse de depot et placement du Quebec, and Virginia-based SpaceVest. The company will use the funds to select a contractor for construction of its five satellite system. The company is associated with Mississippi Space Commerce Initiative and the Mississippi Enterprise for Technology incubator. AstroVision International is developing a satellite system that will provide a live, continuous, color, high-definition video stream of earth from space. http://www.astrovis.com/ _____________________________________________ o Urban Lifestyle Portal and B2B Service Raises Seed Funding LOS ANGELES -- Urbangoods.com, a portal for music, fashion, and content for urban dwellers, said it raised $1 million in its seed funding. The round was financed by undisclosed individual investors. The company intends to open a $10 million second round in late June. Through its portal, the company provides e-commerce capabilities for small and medium-sized businesses serving the urban market. The site covers approximately fifty cities, and profiles targeted retail establishments, nightclubs, hotels, salons, and related businesses and services. http://www.urbangoods.com/ _____________________________________________ o Web Publishing Automation Services Firm Closes Seed Round NEW YORK -- PanaSite Software, which provides automation services for Web publishing, said it raised an undisclosed amount in its seed round of funding. Investors in the round included Hudson Ventures, founder of Lakota Investment Group Carl Wolf, Mary Beazley of USA.net, and several investors from Salomon Smith Barney. Mr. Wolf will take a seat on the company's board of directors. The company said the funds will be used for launching its new Web-based content management service UpdateThis.com. http://www.panasite.com/ _____________________________________________ o $40 Million Third Round for Optical Network Equipment Firm CHELMSFORD, Mass. -- Astral Point Communications, which develops technology for optical networking equipment, said it raised $40 million in its third round of venture funding. This latest round brings the company's total funding to $73 million. New investor Bowman Capital led the round, which included other new investor Essex Investment Management and previous investors New Enterprise Associates, One Liberty Ventures, and Sprout Group. The company will use the funds for marketing, company expansion, and product development. http://www.astralpoint.com/ _____________________________________________ o Brecis Communications Gets $20.5 Million SAN JOSE, Calif. -- Brecis Communications, a company developing technology that enables the mass deployment of integrated voice, video, and data services over a variety of broadband technologies and wide area network architectures, said it raised $20.5 million in funding. Investors included Norwest Venture Partners, Charter Venture Partners, InterWest Partners, and Sequoia Capital. Brecis will use the funds for product development, marketing, sales, and manufacturing. http://www.brecis.com/ _____________________________________________ o European Incubator, Protege, Secures $45 Million Round Two LONDON -- Protege, a European Internet incubator, said it raised $45 million in second round financing. Partech International, American Express, Bridgepoint Capital (previously NatWest Equity Partners), XDL Intervest, and Vulcan Ventures contributed. The investment will be used to develop the Protege Group's core businesses: Virtual Management, which accelerates the entry of U.S. Internet businesses into Europe; Citria, which implements e-business services for companies; and iCocoon, which builds European Internet businesses. http://www.protege.co.uk/ _____________________________________________ o Microprocessor Firm ARC Cores Gets $50 Million in New Funds LONDON -- ARC Cores, which develops microprocessors, said it raised $50 million in its latest funding. The round included investments from Beeson Gregory, Goldman Sachs, Invesco, Societe Generale, Texas Instruments, and UBS. Previous investors in the company include Apax Partners, Cedar, and Nomura. The most recent investment brings the company's total funding for the past 16 months to more than $70 million. http://www.arccores.com/ _____________________________________________ o Religious Site Beliefnet Raises $20 Million in Second Round NEW YORK -- Beliefnet.com, an interfaith source of information, advice, and news that launched its site in January, said it received $20 million in a second round of financing. New investor Primus Venture Partners led the round and was joined by exisitng investor Highland Capital Partners, as well as new investors Blue Chip Venture Company, The Trump Group, and Zero Stage. The company plans to use the funds for technology development and to establish commerce partnerships. A representative from Primus will join Beliefnet.com's board as a result of the round. http://www.beliefnet.com/ _____________________________________________ o Web-based Currency Firm Beenz Gets Raises $51.4 Million NEW YORK -- Beenz.com, developers of a Web-based currency, said it secured $39.5 million in fourth round funding. New investors Kataweb, New World CyberBase, BayStar Capital, Sycamore Ventures, ING Barings, and DRW Venture Partners participated in the funding. Previous investors Apax Partners Funds, Patricof & Co. Ventures, Hashari Tsushin Partners II, Viventures Partners, and the French investor Artemis and Gefinor also invested in the round. The funding will be used to expand the beenz merchant and consumer networks, as well as for marketing and technology development. Beenz.com also said it raised an additional $11.9 million for funding its majority held joint ventures in Italy, Greater China, Japan and Korea. These funds came from Kataweb, New World CyberBase, Oracle Japan, Softbank e-Commerce and Hikari Tsushin Partners II. http://www.beenz.com/ _____________________________________________ o $24 Million Second Round for ASP Eureka Broadband NEW YORK -- Eureka Broadband, an ASP that provides business customers with broadband network applications and services, said it raised $24 million in second round funding. Previous investor Spectrum Equity Investors and new investor CB Richard Ellis Investors were the primary investors in the round. Previous investor AT&T Ventures, along with several undisclosed institutional and individual investors, also contributed to the financing. The company's services include broadband Internet access, IT outsourcing, and data services. The company, which plans to use the funding for expansion, operates in eight markets: New York, Los Angeles, Philadelphia, Baltimore, Washington, DC, and South Florida. http://www.eurekabroadband.com/ _____________________________________________ o Administrator for Online Marketplaces Gets $6.7 Million BRAINTREE, Mass. -- EquipNet, which provides businesses with internal and external Internet-based asset redeployment services and administers Web marketplaces in a variety of industries, said it raised $6.675 million in funding. The funding was led by the Orchard Capital Group with NETInvest, Quadra Invest, and the Federal Machinery and Equipment Company participating. The company will use the funding to expand into new vertical markets, hire personnel, and for marketing. EquipNet has created marketplaces for used equipment in the pharmaceutical, food and beverage, and chemical industries. http://www.equipnetdirect.com/ _____________________________________________ o DSL Firm AccessLan Communications Raises $35 Million Round ATLANTA -- AccessLan Communications, a developer and supplier of DSL equipment and services, said it raised $35 million in its most recent round of funding. The round was led by new investor BancBoston Ventures and included investments from previous investors Accel Partners, Berkeley International Capital, Highland Capital, Sequoia Capital, and Tudor Private Equity Fund. AccessLan will use the funds to accelerate the launch of two products for streaming audio and video, and expansion of its sales and marketing efforts. http://www.accesslan.com/ _____________________________________________ o E-Security Software Company Gets $9 Million Second Round OTTAWA, Ontario -- Kyberpass, a provider of electronic security software, said it secured CDN $13 million ($8.8 million) in its second round of venture capital financing. The investment was led by NB Capital Partners, with participation from Covington Capital. McLean Watson, the company's original investor, also contributed funds. The capital will be used for sales and marketing. http://www.kyberpass.com/ _____________________________________________ o meVC Invests $7 Million in Endymion Systems SAN FRANCISCO, Calif. -- meVC Draper Fisher Jurvetson announced a $7-million investment in Endymion Systems, an information technology consultancy which provides business-to-business e-commerce products and services. The funding will be used to establish national and international regional branches. http://www.esicom.com/ _____________________________________________ o Online Job Market Firm Takes $3 Million in its First Round LOS ANGELES -- Wanted Technologies, a provider of employment information services for Internet businesses, said it raised $3 million in its first round of venture backing. The round was led by Investissement Desjardins and included Innovatech Quebec/Chaudiere-Appalaches. The company, which has offices in California and Quebec, will use the funds for corporate development and prepare for its next round of funding in the U.S. Wanted Technologies develops products and services that allow Internet businesses to manage their own online career information centers. The company expects to name its board of directors later this month. http://www.wantedtech.com/ _____________________________________________ o Optical Micro-Machines Gets $75 Million in Third Round Funds SAN DIEGO -- Optical Micro-Machines (OMM), an optical switching company, said it received $75 million in third round funds. The financing was led by Weston Presidio Capital, and includes investments from Atlas Venture, Bessemer Venture Partners, Rho Management, and Sevin Rosen Venture Partners. OMM has raised $120 million since it was founded in 1997. The company expects to use the funds to move to a new facility, for hiring, and other purposes. http://www.omminc.com/ _____________________________________________ o Report: SupplyForce.com Raises $52 Million in Second Round NEW YORK -- SupplyForce.com, a business-to-business construction and industrial site for independent local and regional distributors, plans to announce today that it raised $52 million in second-round funding, according to The Wall Street Journal. Led by Crosslink Capital, the round also included Patricof & Co. Ventures, Comcast Interactive Capital, and Katalyst Venture Partners. SupplyForce.com's distributors, which are equity investors in the King of Prussia, Pa.-based company, have also participated in the round, along with several undisclosed manufacturers. http://www.supplyforce.com/ _____________________________________________ o Zack Network Receives Investment, Names New Board Members SAN MATEO, Calif. -- Zack Network, developer of technology that provides users with contextual information while they browse or shop on the Internet, said it received $1.5 million in an investment from new investor Sienna Holdings. Mark Balbanian, principal of Sienna, will join the company's board of directors as a result of the funding. The primary investor in Zack's first round was Bertelsmann Ventures, the venture arm of Bertelsmann AG. The company expects to close its second round of financing sometime this summer. http://www.myzack.com/ _____________________________________________ o CyberStarts Invests $5 Million in Online Insurance Provider ATLANTA -- CyberASP, which will provide online property and casualty insurance, received a $5 million investment from CyberStarts, according to the company. CyberASP provides insurance clients with real-time Web-based services such as document imaging, storage and management, and workflow and business process flow that aim to increase the speed and accuracy of the claims process. The company will use the money from the funding to support its planned launch in August. Cyberstarts president, Ashish Bahl, will take a seat on the CyberASP board of directors. Telephone 404-365-6191. _____________________________________________ o E-Learning Company gForce Gets $16.5 Million Third Round SAN JOSE, Calif. -- gForce Systems, a company providing electronic learning portal systems, said it received $16.5 million in third round funds. Investors in this round include Aragon Ventures, The Entrepreneurs Fund II, Foundation Capital, Intel Capital, and Vencraft. The proceeds will be used for product development and to expand the company's operational infrastructure. http://www.gforcesystems.com/ _____________________________________________ o Free Domain Name Firm Namezero Raises $6.8 Million Series B LOS GATOS, Calif. -- Namezero.com, which provides free domain names and domain name POP e-mail, said it raised $6.8 million in its Series B funding. The round was led by previous investor WaldenVC and included investments from previous investors Arcadian Venture Partners and Whitman Capital. The company said it will use the funding to manage its membership growth. Phil Sanderson, a general partner with WaldenVC, will take a seat on the company's board of directors. http://www.namezero.com/ _____________________________________________ o Music Portal Site Net4Music Raises $16 Million Third Round NEW YORK -- Net4Music, which operates a Web portal allowing musicians to download music, said it raised $16 million in its third round of funding. New investor Rothschild Asset Management led the round, which included other new investors BancBoston Capital; EDB Venture; Genevest; MC ITE, a subsidiary of Mitsubishi; Mitiska Net Fund Europe; Mitsubishi; Turenne Capital Partenaires; and individuals. Previous investors contributing funds to the round included PLS Venture Capital Partners, Robertsau Investissement, funds managed by SGAM, and Viventures. The company will use the funds to acquire new technology, develop its Web site, finance data entry, and for marketing. Net4Music licenses digital distribution rights to music titles and provides downloads of sheet music. http://www.net4music.com/ _____________________________________________ o Breakthrough Software Completes $8 Million in Second Round SAN JOSE, Calif. -- Electronic commerce software company Breakthrough Software said it raised $8 million in its second round of financing. Alignment Capital and Wand Partners participated in the round. The company plans to use the funding for research and development, and hiring staff. Breakthrough's software is targeted at small and medium-sized businesses. http://www.breakthroughsoftware.com/ _____________________________________________ o Content Filter Firm Sageware Gets $13.5 Million Third Round MOUNTAIN VIEW, Calif. -- Sageware, a provider of automatic categorization and content filtering services, said it raised $13.5 million in a third round of financing led by new investor H&Q Asia Pacific with new investors Core Pacific and WK Technology contributing. Previous investor Capital Plus also participated in the round. The funds will be used for global expansion. http://www.sageware.com/ _____________________________________________ o Design Automation Software Firm Gets $7 Million Third Round SAN JOSE, Calif. -- C Level Design, a developer of system-level design automation software, said it raised a $7 million third round of funding from new investors Altera and Intel Capital and returning investors Band of Angels Fund and Sofinnova Ventures. The company will use the funding for research and development, and field sales. http://www.cleveldesign.com/ _____________________________________________ o Imperial Bank Invests $1.5 Million in Tonic Software AUSTIN, Texas -- Imperial Bank's emerging growth division said it invested $1.5 million in Tonic Software, a software company based here. The company, which develops Web application assessment products, will use the funds for equipment financing, working capital, and letters of credit. In March, the company received $5 million in its first round of funding from Sevin Rosen Funds. http://www.tonicsoftware.com/ _____________________________________________ o Norkom Technologies Raises $6 Million in Third Round BOSTON -- Software company Norkom Technologies said it received $6 million in a third financing round. New investors Hibernia Capital Partners, Independent Newspapers Ireland Ltd., and existing investors the Reihill family, along with new individual investor Denis O'Brien, participated in the round. The company plans to expand into the U.S. market with the funding. Denis O'Brien and Gavin O'Reilly, of Independent News & Media plc, are joining the board as non-executive members. Norkom provides customer interaction software to the telecommunications and retail financial services sectors. Norkom has offices in Belgium, Boston, Ireland, and Netherlands. http://www.norkom.com/ _____________________________________________ o SPSS Makes $1 Million Strategic Investment in E.Intelligence CHICAGO -- Publicly traded forecasting services company SPSS said it made an equity investment of $1 million in e.Intelligence, a provider of demand planning applications and services that aim to help large and mid-sized companies forecast market demand. The two companies previously said that e.Intelligence would incorporate SPSS technology into its business-to-business planning services. E.Intelligence will use the funds for sales and marketing, and for development and integration of technology. E.Intelligence raised $4.3 million in its first institutional funding from JMI Equity. The company began as a pilot project within Information Advantage and was established as a separate, independent company when Information Advantage was acquired by Sterling Software. http://www.eintelligence-inc.com/ _____________________________________________ o Tessera Raises $5 Million in Add-on Mezzanine Funds SAN JOSE, Calif. -- Tessera, which provides technology for semiconductor chip-scale packaging, said it raised an additional $5 million for its mezzanine round from Equity Group Holdings III and Arbor Company president D. James Guzy. The company closed an initial $29.4 million in mezzanine funding in February. The new funds will support marketing, business development, technology development, services, and intellectual property enforcement. The company also said it named Mr. Guzy to its board of directors. Tessera is also backed by CSK Venture Capital, Investor AB, Landmark Partners, LG Electronic, Rambus, and Ticonderoga. http://www.tessera.com/ _____________________________________________ o Genesys Angelbridge Fund Invests $4 Million in uGetHeard NEW YORK -- Genesys Angelbridge Fund I said it closed a $4 million round of financing for uGetHeard.com, a San Mateo, Calif.-based company that seeks to automate the process by which corporations and customers interact. Bruce Judson, management advisor to Genesys Angelbridge Fund, will join the board. Previous investors in the company include Crystal Internet Ventures, IDG Ventures, and Redrock Ventures, as well as a group of individuals. http://www.ugetheard.com/ _____________________________________________ o Residential Gateway Firm Closes $10 Million Fourth Round RENO, Nev. -- ShareGate, which develops residential gateways systems for broadband services, said it received $10 million in a fourth round funding led by new investor Blueprint Ventures with new investors Advent International and Amtech participating. Bart Schachter, general partner at Blueprint Ventures, was added to the company's board of directors, which now stands at four. The company will use the funds for product development. http://www.sharegate.com/ _____________________________________________ o $2.5 Million Third Round for Voice Recognition Software Firm TROY, Mich. -- Clarity, a provider of software products for voice activated telecommunications and human to machine interfaces, said it completed its third round of venture funding. Overall, the company received $2.5 million in the round. Duchossois TECnology Partners provided the financing. The company is also backed by Sloan Ventures. http:// www.clarityco.com/ ======= New Products ======= o govWorks Forms E-Government Subsidiary for Latin America NEW YORK -- GovWorks, which provides Internet services that facilitate interactions between government agencies, citizens, and businesses, said it has formed govWorks Latin America, a joint venture with the Argentine firm Consultora Tecnologica SA (Cotesa), a Buenos Aires-based provider of information technology strategy and integration services. GovWorks has a majority stake in the subsidiary, which is based in Bermuda and has headquarters in New York and Miami. GovWorks Latin America is raising between $15 million and $20 million in first round financing from venture funds and strategic partners, and expects to close the round within six weeks. Daniel Castillo, president of Cotesa, is interim chief executive officer of govWorks Latin America, which has established Web sites for governments in Argentina, Brazil, and Colombia. The company plans to launch sites in Chile and Mexico in the next 60 days and is considering expansion to other companies, including Uruguay and Costa Rica, by year's end. The govWorks platform enables governments and agencies at the national, regional, and local levels to provide businesses and individual citizens with information and services, such as answers to frequently asked questions, and directories and contact information for government officials. The platform also enables users to, for example, renew business licenses, pay fines, register complaints, or search for government jobs. In addition, govWorks can provide governments with procurement and auctioning services. The company charges governments a membership and licensing fee, on the order of $5,000 to $15,000 per month, and other fees or commissions depending on the services used. In April, govWorks raised $39.2 million in third round funding. The company's backers include American Management Systems, Global Bridge Ventures, Hearst New Media, executives of Kohlberg Kravis Roberts, Mayfield Fund, Metropolis Ventures, New York City Investment Fund, Safra Group, Sapient, and Vignette. http://www.govworks.com/ http://www.govworks.com.ar/ _____________________________________________ o Children's Content & Marketing Site Tykesville.com Launches NEW YORK -- Tykesville, which licenses original children's broadcasting to other Web sites, announced its launch. Tykesville has offices in New York and Los Angeles. The company received an undisclosed investment from the Ayzenberg Group last month. The Web site is not yet available. Telephone 212-448-1043. _____________________________________________ o Health and Spirituality Site eSpirituality.com Launches NEW YORK -- eSpirituality.com, an online site for health and spirituality products and information, announced its launch. The company is backed by individual investors and intends to raise a $5 million to $10 million round later in the summer. The company offers advice, guidance, and resources on topics such as mystical traditions, personal empowerment, wellness, alternative medicine and health, dream analysis, astrology, angels and reincarnation, and occult studies. The company's president, founder and CEO, Tidiani Tall, was previously a fixed income analyst for Morgan Stanley. http://www.espirituality.com/ _____________________________________________ o Online Movie Ticketing Firm Fandango Announces Itself NEW YORK -- A new online movie ticketing and entertainment company announced itself and said it has chosen Fandango as its name. The company will provide movie-related content including showtimes, trailers, and reviews. The company expects to launch a test pilot of its site within the next several weeks and a full launch later this summer. The company's investors include Accretive Technology Partners and General Atlantic Partners. Telephone 212-371-5999. ======= M&A ======= o Bricsnet to Acquire E-Commerce Product Provider Viscomm WASHINGTON -- Bricsnet, a publicly traded provider of Internet services for the building industry, said it intends to acquire Viscomm, which provides information management systems to the architectural, engineering, and construction industries. The acquisition will be made through the exchange of an undisclosed number of shares. Viscomm will be absorbed into Bricsnet and expects to retain all of its employees. Viscomm is backed by Access Technology Partners, Ironwood Capital, and Technology Partners. http://www.viscomm.com/ _____________________________________________ o Canon Communications Acquires Online Supplier Database LOS ANGELES -- Canon Communications, which operates more than 20 Web sites covering a number of industries, said it acquired emicatalog.com, an online supplier database formerly owned and operated by consulting firms Kimmel Gerke Associates and Conway Technology Associates. The terms of the deal were not disclosed. Canon Communications, a publisher, tradeshow producer, and digital media company, covers a host of technology markets, including the medical device, electronics, semiconductor fabrication, and injection molding industries. Canon Communications is a portfolio company of VS&A Communications Partners II. http://www.cancom.com/ _____________________________________________ o Original Media Buys Financial Network, FallingShort.com PALM SPRINGS, Calif. -- Original Media said it is in the final stage of acquiring a FallingShort.com, an online financial network. Original Media plans to integrate FallingShort.com into the financial Web sites it owns and operates. FallingShort.com is backed by individual investors. http://www.fallingshort.com/ ======= New Directors ======= o Marketing Software Developer Names Cisco Exec to Board BURLINGTON, Mass. -- Revenio, a developer of automated marketing software, said it named Dan Keshian to a new seat on its board of directors. Mr. Keshian, currently Cisco Systems' vice president and general manager, formerly served as president and CEO of WebLine Communications and previously was president of Avid Technology. The company's board is comprised of its founder and CEO, Andrew Payne, and representatives from investors Matrix Partners and Charles River Ventures. The company's backers also include Comdisco, Lighthouse Capital, and Silicon Valley Bank. http://www.revenio.com/ _____________________________________________ o Telicor Names Cisco Executive to Board SEATTLE -- Telicor, which provides telecommunications management services to mid-sized companies, said it named Michael Frendo, senior director of Cisco Systems' technology center, to its board of directors. The company recently closed a $7.5-million first round co-led by Guide Ventures and Redleaf Group. http://www.telicor.com/ _____________________________________________ o Optical Firm Kestrel Solutions Names Brocade CEO to Board MOUNTAIN VIEW, Calif. -- Kestrel Solutions, which develops optical modulation-based telecom transmission products, said it appointed Greg Reyes to its board of directors. Mr. Reyes is the president and CEO of Brocade Communications Systems. With his appointment the total number of board members is eight. In January, the company received $105 million in its fourth round of funding led by Credit Suisse First Boston, with Photonics Fund also participating. The company is also backed by Advanced Technology Ventures, Bank America Ventures, Carlyle Group, Information technology Ventures, Polaris Ventures, Spectrum Equity, and Worldview Technology Ventures. http://www.kestrelsolutions.com/ _____________________________________________ o PC Software Firm DigitalSquare Names Two New Board Members SCOTTS VALLEY, Calif. -- DigitalSquare, whose technology enables PC users to "virtually" shop and purchase software titles for their computers, said it named Roger Porter, Harvard University's IBM Professor of Business and Government, and J. Alan Lindauer, president of Waterside Capital, to its board of directors. This brings the board total to five members. Earlier this week, the company named Stephen Winters as its first president and COO. DigitalSquare has raised $6.5 million in two rounds of financing from Ensign Peak, Mooroolbark Investments, and Waterside Capital. The company's system is embedded into new computers and consumers can then use the technology to buy software titles which are already resident on their computer, so there is no downloading involved. Users can try the software and buy the products they want with a secure credit card transaction over the Internet. http://www.digitalsquare.com/ _____________________________________________ o Human Resources Portal Adds Business Consultant to Board TAMPA, Fla. -- GlobalAxxess.com, which operates a portal that provides human resources services to businesses, said it named Kenneth G. Buffin, Ph.D., to its board of directors. Dr. Buffin is a business consultant and has worked as an advisor to the United Nations, World Bank, and International Monetary Fund. He serves on committees relevant to the actuarial profession and works with issues including retirement policy, social security, and the trends of consolidation in the financial services industry. GlobalAxxess.com recently raised its first round of venture funding from Silicon Valley Internet Capital. Telephone 1-800-493-4490. ======= New People ======= o Internet Storage Company 3Ware Names New President & CEO PALO ALTO, Calif. -- 3ware, a company that designs storage technology for Internet businesses, said it named Beau Vrolyk as president and CEO. He comes to the company from Silicon Graphics, where he was a senior vice president. 3Ware is backed by VantagePoint Venture Partners, New Enterprise Associates, Selby Venture Partners, and individual investors. http://www.3ware.com/ _____________________________________________ o Online Retail Partners Names Investcorp Exec as New CEO NEW YORK -- Online Retail Partners (ORP), a firm that helps traditional retailers establish e-commerce operations, said it named Charles Philippin as its new chief executive officer. He replaces Henry Nasella, company founder, who will remain as chairman. Mr. Philippin joins ORP from Investcorp, where he directed transactions and was a member of the global management committee. Last year, Online Retail Partners received $62 million in a first-round funding from Comcast Interactive Capital, Global Retail Partners, Oak Investment Partners, Pequot Private Equity, and Ramsey Beirne Associates. http://www.onlineretailpartners.com/ _____________________________________________ o Promotional Material Provider Logowire Names Top Execs CAMBRIDGE, Mass. -- Logowire, which helps corporate customers design and order branded promotional items, said it named its chief executive officer and president. Samish Kumar, the company's chief executive officer, formerly served as director of international equity for Warburg, Dylan, Reed & Co. Eric Hoagland, the company's president, was the co-owner of the Boston Shirt Company. The company is backed by individual investors and raised $2 million in its Series A funding. http://www.logowire.com/ _____________________________________________ o Risk Management Firm OperationalRisk Names First President NEW YORK -- OperationalRisk.com, a provider of Web-based operational risk management assistance, said it named Everett Diggs as its first president. Mr. Diggs joins the company from Plus Integration Business Solutions, an IT consulting and software firm, where he served as president. OperationalRisk.com has received financing from Pyramid Ventures, a subsidiary of Deutsche Bank. OperationalRisk.com's products are designed to help executives identify, measure, analyze, and mitigate operational risks. http://www.operationalrisk.com/ ======= VC Fund News ======= o Q Funding Launches New Dallas-Based Incubator DALLAS -- QSpring, a venture of the $4 billion-asset investment firm Q Funding, said it opened a 21,000 square foot Internet incubator in Dallas. The incubator provides data and communication networks, access to Q Funding venture capital, office space, mentoring, and other services. The incubator takes a 10% cut in its portfolio companies and does not request board seats. The company recently incubated Handango.com, a handheld equipment and software portal. http://www.qspring.com/ ======= VC Personnel ======= o B2B Investor DigitalVentures Names New Managing Director SAN FRANCISCO -- DigitalVentures, which invests in business-to-business Internet companies, said Mike Seversen joined DigitalVentures as managing director. Prior to joining DigitalVentures, Mr. Seversen managed the Riverside Company's San Francisco office. DigitalVentures recently launched DigitalVentures Asia, based in Hong Kong, to develop Internet technologies and start-up companies in Asia. http://www.digitalventures.com/ _____________________________________________ o Bright Station Names Executive of Internet Venture Division LONDON -- Bright Station, a publicly traded Internet services and commerce company, said it named Robert Lomnitz as the first chief executive of its Internet Ventures division (IVD). Mr. Lomnitz was most recently director of Internet investments with Baltic Asset Management. IVD recently launched and will provide investment, technology assets, and management services to high-tech and Internet startups. http://www.brightstation.com/ _____________________________________________ o LaunchCenter 39 Names Ex-boo.com Director General Manager NEW YORK -- LaunchCenter 39, a full-service Internet incubator with headquarters here, said it named Pepper Evans as general manager of partner companies. Ms. Evans recently served as managing director of global markets at boo.com, the failed online retailer. http://www.lc39.com/ |||||||||||||||||||| 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. 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