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Subject:Venture News, Wednesday, November 15, 2000
Date:Wed, 15 Nov 2000 02:34:00 -0800 (PST)

o Utility.com Raises Over $22 Million in Third Funding Round

EMERYVILLE, Calif. -- Utility.com, an Internet utility
company, said it has closed its third round of venture
funding, raising over $22 million. Gaz de France,
a European gas company, led the round that included
Sumitomo Corp. of Japan. Previous investors Southern
Company Energy Marketing, Sempra Energy Trading,
idealab! Capital Partners, Trident Capital, Primedia
Ventures, Kinetic Ventures, TL Ventures, and Moore
Capital Management also participated in the round.
Utility.com said it will use the funds to support
expanding operations.


GE Global Plans Railroad Exchange Site
The Washington Post

Can online commerce help rail companies save money on locomotives and boxcars?

Gaithersburg-based GE Global eXchange Services will announce today the Global
Rail Exchange, which aims to facilitate just such purchases.
The Internet-based business-to-business exchange, which has been in testing
for three months with some of the largest buyers and sellers of railroad
equipment, officially opens for business today with the goal of serving as
the online marketplace for trade of all the goods used by railroads.

By bringing diffuse manufacturers and buyers together into one exchange, the
company hopes to offer an attractive proposition to each side, said Otto
Kumbar, the vice president of interchange solutions at GE Global eXchange

Suppliers have joined to get access to more potential buyers, while buyers
have joined to pit suppliers against one another in pursuit of the lowest
possible price for components of railroad systems.

Global Rail Exchange, despite starting well after the crest of the wave in
business-to-business start-ups, claims several advantages. It is run by a
wholly owned division of General Electric Co., giving it clout in the
marketplace, and already has 700 companies as users, including some of the
biggest names in the railroad industry such as Amtrak, Norfolk Southern Corp.
and CSX Corp.

The company aims to bring liquidity to the market for rail industry supplies,
and to cut transaction costs by conducting them online and profit through
subscription fees, as well as collecting a transaction fee for each completed

Kumbar claims that in the initial tests with customers, suppliers saved an
average of 10 to 25 percent on costs normally associated with selling their
Many online exchanges have had trouble gaining a foothold this year, as
innumerable start-ups have set up--often in the same market--and many have
yet to complete their first transaction or are struggling to generate profits.
"I think the key to our exchange is making sure you have a return on
investment for all buyers and suppliers," Kumbar said. "We have that."

o Search Firm Requisite Technology Has $30 Million Mezzanine

WESTMINISTER, Colo. -- Requisite Technology, which
makes a product finding engine for e-commerce sites,
raised $30 million in a mezzanine round led by the
venture divisions of strategic partners, Oracle
Venture Fund and SAP Ventures. Previous investors
Trinity Ventures; Bowman Capital; and Mohr, Davidow
also participated. There will be no board changes
as a result of the investment. Requisite Technology
said it will use the funds for operating expenses.


o Advanced Technology Ventures Raising New $800 Million Fund

PALO ALTO, Calif. -- Venture capital firm Advanced
Technology Ventures said it is raising its seventh
fund, ATV VII, which it expects to close in the
mid to late first quarter of 2001 with at least
$800 million. ATV said its existing limited partners
were participating in the new fund that will focus
on early-stage communications, Internet infrastructure,
software, and healthcare companies. The firm usually
invests in Series A rounds, but makes some Series
B and C round investments. Advanced Technology Ventures'
portfolio companies include Boomerage Marketing,
Garage.com, iConverse, Linx Communications, Onix
Microsystems, and SpectraSwitch.

o Qualcomm Forms Qualcomm Ventures with $500 Million

SAN DIEGO -- Qualcomm, a company which develops
and delivers digital wireless communications products
and services based on its code division multiple
access (CDMA) technology, said it has formed Qualcomm
Ventures and is making a $500 million commitment
to the fund that will be invested over four years.
The fund will make strategic investments in startup
companies globally to support the adoption of CDMA
and promote wireless Internet usage. Jeff Jacobs,
senior vice president of business development for
Qualcomm will manage Qualcomm Ventures. The fund
will target the areas of communications devices
and applications; wireless communications components
and infrastructure; Internet infrastructure, content
and services; and enabling and complementary technologies.
The size of each investment is expected to be up
to $10 million.

o Broadband Firm IP Communications Gets $312 Million Round Two

DALLAS -- IP Communications, a broadband service
provider, said it has secured $312 million in its
second round of funding led by VantagePoint Venture
Partners, a previous investor. CIBC Capital Partners
and GE Equity also reinvested more than 100% of
their initial amount. New investors, DLJ Global
Communications Partners, Desai Capital Management,
Creative Technology, Prudential Capital Group-Direct
Private Equity, and Bruckmann, Rosser, Sherrill
& Co., as well as several other undisclosed private
firms also participated in the round. Together,
new and previous investors provided IP Communications
with $130 million in equity financing. The remaining
$182 was secured as a long-term debt. The company
said it will use the funding to accelerate the strategic
development of its network and develop its broadband
products and applications.

o Mobile Platform FreeRein Gets $15 Million Series A

SEATTLE -- FreeRein, which is developing a platform
to provide enterprise applications and services
to mobile workforces, said it raised $15 million
in Series A financing from ComVentures and Technology
Partners. FreeRein co-founder and CEO, Don Davis,
was managing partner for the Pacific Northwest region
of USWeb/CKS. Bruce Gilpin, FreeRein co-founder
and chairman of the board, was also a USWeb executive
and a co-founder of Intend Change.

o French Security ASP Intranode Has $1.7 Million First Round

PARIS -- Intranode, a French developer of online
security applications, said it raised FFR 12 million
($1.7 million) in its first round of funding. Investors
in the round included Innovacom and GemVentures.
The company said it will use the funding to accelerate
the development of new functions for its ActiveSentry
product, and to increase its sales and marketing.

o Infrastructure Provider DV2 Raises First Round of Funding

ATLANTA -- DV2, which provides managed colocation
space and enterprise data storage services, said
it raised its first round of funding for an undisclosed
amount led by Nashville-based DC Investment Partners,
which will have representation on the company's
board. The company said it is still raising funds
for expansion to different U.S. markets. DV2's products
and services provide turnkey, outsourced data storage,
managed server and colocation services, and communications
services for users with large storage or high bandwidth
transport needs.

o Online Financial Tool StatementOne Has $15 Million Round Two

LAWRENCEVILLE, N.J. -- StatementOne, which provides
brokers, financial advisors, and investors with
data aggregation services and consolidated financial
statements, said it raised $15 million in its second
round of funding. Investors include Boston Ventures
Management, Charterhouse Group International, Allianz
of America, Desai Capital Management, and Axiom
Venture Partners. The company will use the funds
for software development and to rollout its first
product, an online portal that provides financial
advisors and their clients statements and performance

o Broadband Firms Eureka and Gillette Global Network Merge

NEW YORK -- Eureka Broadband, an ASP that provides
business customers with broadband network applications
and services, and Gillette Global Network, a telecommunications
firm, said they are merging in an all-stock transaction
and will operate as a 50-50 partnership. Spectrum
Equity Investors and Lazard Technology Partners,
both previous investors in each company, are planning
on providing additional funding to the new company.
Jeffrey E. Ginsberg, chairman and CEO of Eureka,
will be chairman of the company and Robert W. Vanech,
founder and president of Eureka, will be president.
Gillette said the new name has not been decided
and the two companies will operate under their current
names until they become fully integrated in the
third quarter of 2001. Eureka is backed by Spectrum
Equity Investors, CB Richard Ellis Investors, and
AT&T Ventures, and Gillette is backed by Encore
Venture Partners, Lazard Technology Partners, and
Shoemaker Investments.