Enron Mail

To:greg.whalley@enron.com, louise.kitchen@enron.com, jay.fitzgerald@enron.com,stephen.horn@enron.com, andy.zipper@enron.com, michael.miller@enron.com, allan.sommer@enron.com, john.norden@enron.com, drew.ries@enron.com
Subject:Venture News, Friday, November 10, 2000
Date:Fri, 10 Nov 2000 01:20:00 -0800 (PST)

ICG Cuts Staff by 35%, to Spin Off Japanese and Euro Units =20

WAYNE, Pa. (VENTUREWIRE) -- Publicly traded Internet Capital Group (ICG),=
which funds and supports business-to-business Internet commerce companies=
through a network of partner companies, said it laid off 35% of its=20
workforce. The layoffs came with the company's third quarter report, in whi=
the company reported losing $263.9 million. The company said it would=20
intensify its focus on its top 15 companies. The firm will also spin off it=
European and Japanese units into independent companies in which ICG will=20
retain a substantial equity stake. ICG also said it sold its equity stake i=
n =20
technology platform company Centirmed to Global Health Care Exchange for an=
undisclosed amount. ICG portfolio companies include AssetTrade.com, Delphio=
eCatalogs, e-Chemicals, Onvia.com, PaperExchange, USgift.com, and Vivant!=


X.com Shuts Down Online Banking, Continues Payment Services
?PALO ALTO, Calif. (VENTUREWIRE) -- X.com said it is shutting down its onli=
ne ?financial services, including the Internet banking unit of First Wester=
n ?National Bank, to focus on online payment systems. X.com said there will=
not ?be any lay-offs resulting from the change. The company's financial se=
rvices ?will close on December 1st and will stop taking deposits on Novembe=
r 20th. ?The company said its online payment business has consistently outs=
hined its ?financial services, a situation exacerbated by the company's mer=
ger with ?online payment company PayPal in March. X.com is backed by Credit=
Agricole, ?Deutsche Bank, Digital Century Capital, Goldman Sachs, Hikari T=
sushin, ?idealab! Capital Partners, J.P. Morgan, Madison Dearborn Partners,=
Qualcomm, ?and TAMC. ?http://www.x.com?___________________________________=
___________________-??Venture Capital Investment Down in Third Quarter, Rep=
ort Says??Venture capitalists curbed first-time investments and focused on =
existing ?portfolio companies in the third quarter, leading to a slight dro=
p in venture ?funding across the country and in Texas, according to Pricewa=
terhouseCoopers' ?MoneyTree report. In Houston, venture capital investing =
grew 178 percent ?from the second quarter to $142.3 million, fueled mainly =
by the record $90 ?million raised by online research company Questia Media.=
??Nationwide, venture investing dropped from $19.8 billion in the second ?q=
uarter to $17.6 billion in the third quarter, but was still almost twice th=
e ?$8.9 billion recorded in the third quarter of 1999. In Texas, the figur=
e ?dropped from $1.084 billion in the second quarter to $1.013 billion in t=
he ?third quarter, but was still more than the $519 million reported for th=
e ?third quarter of 1999.??"People have the money to invest but are relucta=
nt to be first with a new ?company," said Charles Szalkowski, an attorney w=
ith Baker Botts. "There's ?been lots of follow-on money for a company that'=
s seen investments in the ?past, but there's not a hurry to be the first wi=
th a new, unproven company."??Houston outpaced the $51.4 million raised in =
the second quarter of 2000 and ?the $42.9 million reported for the third qu=
arter of 1999.??In addition to the record venture capital raised by Questia=
, other local ?companies that received money included e-commerce company EC=
Outlook ($25.2 ?million), oil-field services firm OneOffshore ($15 million)=
, radiology ?network management firm HealthHelp ($3.5 million) and medical =
device company ?Interferometrics ($1.5 million).?__________________________=
__________________________??Analytical Modeling Software Developer Raises $=
4.2 Million?
LONDON (VENTUREWIRE) -- Autonomics, which develops analytical modeling=20
software, raised GBP 3 million ($4.2 million) in its initial funding. The=
round was secured from Billam, a publicly traded U.K. venture capital=20
investor recently formed from the shell of an industrial company. Billam sa=
the company will use the funding to take its product to market, ramping up=
development and marketing activities. As a result of the investment Billam=
will place a representative on the Autonomics board of directors. Telephone=

Wireless Firm Blue Wireless Raises $6 Million First Round
?BURLINGAME, Calif. (VENTUREWIRE) -- Blue Wireless, a developer of ?voice-e=
nabled applications for wireless services, said it has raised $6 ?million i=
n its first round of financing from co-leads Storm Ventures, ?DaimlerChrysl=
er Venture, and CMEA Ventures and the rest from Season ?International and u=
ndisclosed individuals. Tae Hea Nahm, a general partner at ?Storm Ventures,=
and Tom Baruch, a general partner at CMEA Ventures, will join ?the Blue Wi=
reless board as its fourth and fifth members. Blue Wireless said ?it will u=
se the funds to develop partnerships and to integrate its product ?with mob=
ile technology. ?http://www.bluewireless.com?____________________________=
________________??ASP for Legal Service Industry Gets $1.3 Million Seed Fun=
SAN FRANCISCO (VENTUREWIRE) -- eJur, which provides Web-based infrastructur=
to law firms, corporate legal departments and government counsel through a=
subscription-based application service, announced that it has raised $1.3=
million in seed financing from individual investors. The company used the=
funds for product development, hiring, and to form strategic relationships.=
eJur will begin beta testing by the end of the year. =20

Corrent, Semiconductor Developer, Launches With $9.5 Million
?TEMPE, Ariz. (VENTUREWIRE) -- Corrent, which develops semiconductor ?tech=
nology, said it launched with a $9.5 million first funding. Battery ?Ventur=
es is the sole investor in the company. Corrent is developing network ?secu=
rity chips for securing virtual private networks and e-commerce ?transactio=
ns at fiber optic speeds over the Internet. The company currently ?employs =
18 and is developing a 12,000 square foot headquarters in Tempe, with ?plan=
s to expand to 70 employees over the course of the next year. ?http://www.c=
orrent.com??___________________________________________??Israeli Wireless C=
ompany WaveIP Gets $5 Million First Round?
TEL AVIV, Israel. (VENTUREWIRE) -- WaveIP, an Israeli-based fixed wireless=
company that designs, manufactures and markets digital networking=20
transmission products and services, said it has raised $5 million in its=20
first round of funding led by VAL Investments Group, an affiliate of=20
Verticality Investments Group. The company said it will use the funds to gr=
the company. =20