?	
?	'VentureWire'
	Monday, December 04, 2000	?
?	CONTENTS | COMPANIES | INVESTORS	?
?	
	
	
	top stories
	
	* Online Broker Datek Gets $700 Million, Will Spin Off Island
	* Online Marketing Firm iChoose Shuts Down
	* Quova Names Ex-Telocity Exec President & CEO, Adds to Board
	* Web Security Firm @Stake Gets $26 Million in Second Round
	
	
	
	Optix 2001 Features Creme de la Creme of the Industry
	
	Ask yourself: if Patrick Nettles, Chairman and CEO of Ciena,
	and Kerry Vahala, Professor of Applied Physics at the
	California Institute of Technology, are speaking at Optix
	2001, shouldn't I register to attend? It's been labeled the
	"must-attend" event of the year and is certain to be the
	optimal chance for networking with key players in the industry.
	
	In addition, 48 CEOs representing the best and brightest
	private optical communications companies will expound their
	business plans and future goals to others in the industry.
	
	Participation at this event is subject to approval and is
	limited to senior executives involved in the optical com-
	munications industry. For your registration pack, link 
to:http://www.optix2001.com/
	
	
	
	new money
	
	* Net Security Firm Mazu Gets $8 Million Series A, New CEO
	* Commerce Software Firm Momenta Gets $5 Million Round One
	* Mobile Commerce Firm ViaFone Gets $23 Million in Round Two
	* B2B Content Portal Hetairia Gets $250,000 in Additional Seed
	* Warner Music Group to Take Stake in Echo Networks
	
	
	bad news
	
	* Walker Digital May Have Violated Labor Rules in Layoffs
	* B2B Tech and Support Firm NetSales Cuts 40% of Staff
	* Reward Program Stockback.com Lays Off 50% of Staff
	
	
	new products
	
	* Speed Ventures and Sonera Launch Idea Tester BreedLab 
	
	
	m&a
	
	* Aggregration Firms Yodlee and VerticalOne Merge
	* E-Learning Firm Wide Learning Acquires Financial Directions
	* Procurement Firm Simplexis Acquires Bid Tech Firm NISBIC
	* GeoAccess Acquires Sweetwater Health from Bankrupt Caredata
	
	
	new directors
	
	* Medical App Firm ClinicManager Names New Board Member
	
	
	new people
	
	* Workforce ASP Interactive Software Systems Names President
	
	
	vw corrections
	
	* Allegis Capital
	* Internet Publishing Group
	
	
	TOP STORIES... NEW MONEY... BAD NEWS... NEW PRODUCTS... M&A... NEW 
DIRECTORS... NEW PEOPLE... VW CORRECTIONS
	
	
	?	?	?	VentureFinance:The private equity authority.?	?	Every month VentureFinance tells you where venture?	capitalists are investing and why, which has made it?	a must read for angels, fund managers, investment bankers,?	general partners, and specialists in buyouts and business?	development. From Technologic Partners, following private?	investments since 1985.http://technologicpartners.com/tp/vf/?	?	?	top stories?	??	Online Broker Datek Gets $700 Million, Will Spin Off Island?	
	
	ISELIN, N.J. (VENTUREWIRE) -- Datek Online Holdings, an Internet securities 
broker, said that a group of investors led by Bain Capital and including TA 
Associates and Silver Lake Partners have bought a $700 million majority stake 
in the company. Datek will acquire all voting shares of its original 
shareholders, including former CEO Jeffrey Citron. As part of the deal, the 
investors will spin off Island ECN, an off-market network for trading 
securities, as a separate company. Datek will own 10% of Island. Island's 
board of directors will consist of current management and members of the 
investment group. Datek previously received backing from Group Arnault of 
France, TA Associates, and Vulcan Ventures.
	http://www.datek.com
	http://www.island.com
	
	Online Marketing Firm iChoose Shuts Down
	?	?	DALLAS (VENTUREWIRE) -- iChoose, a developer of e-commerce marketing systems, ?said it has shut down due to lack of funding. In the past couple of months, ?the company has struggled to stay alive by seeking out additional funding, ?and even signed a letter of intent to be acquired. That  acquisition fell ?through and the company said it had no other choice than to close. iChoose ?was unable to disclose the would-be-acquirer due to legal restrictions. On ?its Web site, the company posted a message with uninstall instructions for ?its software and a final farewell to its customers. iChoose was backed by ?Sevin Rosen. ?	http://www.ichoose.com?	?	Quova Names Ex-Telocity Exec President & CEO, Adds to Board?	
	
	REDWOOD CITY, Calif.  (VENTUREWIRE) -- Quova, which provides businesses with 
Internet infrastructure intelligence services, said it appointed Marie 
Alexander as its new president and CEO. Ms. Alexander previously served as 
the vice president of strategic relationships at residential DSL firm 
Telocity. Quova also said that Emerick Woods, president and CEO of Vicinity, 
will join Quova's board of directors. Backers for Quova include Softbank 
Technology Ventures, IDG Ventures, Nexus Group, Fidelity Investments, and 
Schoffstall Ventures.     
	http://www.quova.com
	
	Web Security Firm @Stake Gets $26 Million in Second Round
	?	?	CAMBRIDGE, Mass. (VENTUREWIRE) -- @stake, a provider of Internet security ?services, said it raised $26 million in its second round of funding. ?Investors included Madison Dearborn Partners and previous investor Battery ?Ventures. Individual investors in the round included Bruce Claflin, president ?and COO of 3Com; Paul Sagan, president of Akamai Technologies; William ?Cadogan, chairman, president, and CEO of ADC Telecom; Bob Palmer, former ?chairman, president and CEO of Digital Equipment; Eckard Pfieffer, chairman ?of Intershop and former CEO of Compaq Computer; Morgan O'Brien, co-founder of ?Nextel Communications; and Robert J. Davis, CEO of Terra-Lycos. The company ?will use the funding toward research and new marketing programs. ?	http://www.atstake.com?	?	new money?	??	Net Security Firm Mazu Gets $8 Million Series A, New CEO?	
	
	CAMBRIDGE, Mass. (VENTUREWIRE) -- Mazu Networks, which provides Internet 
security technology, said it has secured $8 million in its Series A round of 
funding from Greylock Partners, Matrix Partners, and Benchmark Capital. As a 
result of the investment, David Arnoff of Greylock and Andy Marcuvitz of 
Matrix will join Mazu's board of directors. The company also said that Phil 
London, who has served in senior executive positions at Lotus Development 
Corp, Trilogy Software and Agillion, has joined Mazu as its new chief 
executive officer.
	http://www.mazunetworks.com
	
	Commerce Software Firm Momenta Gets $5 Million Round One
	?	?	AUSTIN, Texas (VENTUREWIRE) -- Momenta, a software company providing ?collaborative commerce applications and services for electonic marketplaces, ?said it has raised $5 million in its first round of funding. Authosisa, a ?Hong Kong-based venture capital firm, led the round, which also included ?American Pacific Technology Group and several individual Asian and American ?investors. The company said it will use the funds for marketing and product ?development.?	http://www.momenta.com?	?	Mobile Commerce Firm ViaFone Gets $23 Million in Round Two?	
	
	REDWOOD SHORES, Calif. (VENTUREWIRE) -- ViaFone, which enables consumers to 
purchase items via the Internet from any wireless device, said it secured $23 
million in its second round of funding, led by Redpoint Ventures. RRE 
Ventures participated along with previous investors Draper Fisher Jurvetson 
and Partech International. The company will use the funds to launch its 
OneBridge Mobility Platform internationally. RRE Ventures co-founder and 
general partner Jim Robinson III, and Redpoint Ventures partner Peter Gotcher 
joined the company's board of directors.
	http://www.viafone.com
	
	B2B Content Portal Hetairia Gets $250,000 in Additional Seed
	?	?	DALLAS (VENTUREWIRE) -- Hetairia Communications, which is developing a ?business-to-business content portal at www.fastcamel.com, said it has raised ?an additional $250,000 in seed financing from Doug Duncan, a general partner ?at BarleyMills Investment, adding to Mr. Duncan's previous investment of ?$250,000. The company said it will use the funds to form a partnership with ?industry magazines, to make site content available in several languages, and ?to expand customer service and sales. Doug Duncan sits on the board of ?Hetairia Communications along with Michael Cowpland, CEO of Corel, a graphic ?arts and word processing applications firm.   ?	http://www.fastcamel.com?	?	Warner Music Group to Take Stake in Echo Networks?	
	
	SAN FRANCISCO (VENTUREWIRE) -- Echo Networks, which provides interactive 
streaming music, said it has entered into an agreement with Warner Music 
Group (WMG) that permits Echo to include WMG-controlled recordings in its 
community-based streaming music service. As part of the agreement, WMG will 
have the right to acquire a small equity stake in Echo, which is backed by 
eBay co-founder, Jeff Skoll; former president of Disney's Hollywood Records, 
Peter Paterno; and Wish.com CEO Michael Mo. The company has also secured 
funding from Revolution Ventures and Fundamental Capital.  
	http://www.echo.com
	
	bad news
	?
	Walker Digital May Have Violated Labor Rules in Layoffs
	?	?	NEW YORK (VENTUREWIRE) -- Walker Digital, the investment and incubation firm ?run by Jay Walker, the founder of priceline.com, may have violated a federal ?law after it laid off about a hundred employees the week of Thanksgiving. ?Since the U.S. Department of Labor enacted the Worker Adjustment and ?Retraining Notification Act (WARN), a company that is laying off more than ?33% of its active work force in a 30-day period must give workers 60 days ?notice. If workers do not get the proper notice, they are entitled to 60 days ?pay and benefits. According to one former Walker Digital employee, all laid ?off employees received one week of health insurance and no severance pay. ?There are several exceptions to the Labor rules, and the Connecticut Attorney ?General is reportedly investigating the situation. Walker Digital ?spokesperson Kevin Goldman would not comment directly on severance offered to ?its former employ! ess. He said on Friday Walker Digital had not been ?contacted by the state attorney general office and would be happy to ?cooperate if contacted.?	http://www.walkerdigital.com?	?	B2B Tech and Support Firm NetSales Cuts 40% of Staff?	
	
	OVERLAND PARK, Kan. (VENTUREWIRE) -- NetSales, which provides industrial 
suppliers with technology and support services for online product sales, said 
it cut 63 positions in every department, leaving the company with 
approximately 100 employees. The company said it is focusing more on supplier 
integration and that the layoffs were a result of the company's incorrect 
estimation of the number of staff it needed. Over the summer, the company 
sold its online software sales division, eliminating 70 jobs, as part of its 
shift from a business-to-consumer focus to a business-to-business market. 
NetSales received $31.75 million in March from Norwest Equity Partners, Time 
Warner, Chase Manhattan, Wells Fargo, Advanta Partners, HarbourVest Partners, 
and Kansas City Equity Partners. 
	http://www.netsales.com
	
	Reward Program Stockback.com Lays Off 50% of Staff
	?	?	NEW YORK (VENTUREWIRE) -- Stockback.com, a Web site that rewards consumers ?who use partner sites by putting their money into savings programs such as ?mutual funds, said it laid off almost 50% of its 66-member staff. The company ?said it let go of 29 employees, mostly in the information technology ?division. That division will be restructured to tie technology spending to ?revenue streams. The company also said it will be able to operate without any ?additional money until the first quarter of 2002. Despite the cutbacks, the ?company said it will make "strategic hires." Stockback is funded by RRE ?Ventures, Neo Carta Ventures, and TH Lee.Putnam Internet Partners.?	http://www.stockback.com?	?	new products?	??	Speed Ventures and Sonera Launch Idea Tester BreedLab ?	
	
	AMSTERDAM, The Netherlands (VENTUREWIRE) -- Speed Ventures, an international 
venture management company, and Sonera, a Finnish mobile communications and 
services and applications provider, said it has formed BreedLab, which will 
focus on developing and testing new business ideas. Potential entrepreneurs 
joining the BreedLab program will get the services free of charge, but when 
the decision is made to start the business, Sonera and Speed Ventures, will 
take up a shareholding position in the company. 
	http://www.sonera.com/breedlab
	
	m&a
	?
	Aggregration Firms Yodlee and VerticalOne Merge
	?	?	REDWOOD SHORES, Calif.  (VENTUREWIRE) -- Yodlee, which provides a free, ?Web-based service that enables users to manage and gain access to personal ?account information, said it merged with VerticalOne, a wholly owned ?subsidiary of online financing services firm S1, a publicly traded Internet ?banking firm. Vertical One provides personal account aggregration and ?transaction services. The new company will be run as a stand alone under the ?Yodlee name and S1 will hold a 32% ownership stake. No further financial ?details were disclosed. Anil Arora, president and CEO of Yodlee, will be the ?CEO of the new company and Gregg Freishtat, VerticalOne's founder, chairman ?and CEO, will serve as an advisor to senior management. Yodlee is funded by ?Accel Partners and Sequoia Capital.?	http://www.verticalone.com?	http://www.yodlee.com?	E-Learning Firm Wide Learning Acquires Financial Directions?	
	
	LONDON  (VENTUREWIRE) -- Wide Learning, a suppler of financial Internet 
learning services for employees and customers of financial institutions, said 
it acquired  Financial Directions (FDI), a supplier of classroom-based 
financial training for banks, brokers, and financial institutions. The terms 
of the deal were not disclosed. Wide Learning is backed by GE Capital, JP 
Morgan, Arts Alliance, and Forman Hardy Holdings. 
	http://www.financialdirectionsinc.com
	http://www.widelearning.com
	
	Procurement Firm Simplexis Acquires Bid Tech Firm NISBIC
	?	?	SAN FRANCISCO (VENTUREWIRE) -- Simplexis, an online educational service ?provider focusing on K-12 schools and their suppliers, said it acquired the ?National Internet School Bid Information Center, a provider of bid technology ?for schools. Financial terms were undisclosed. Simplexis will integrate ?NISBIC's technology into its own product SimpleBuy, an Internet procurement ?technology for schools and school suppliers. Derek MacFarland, NISBIC's ?founder and CEO, will remain with the company as head of the sealed bid ?department. Simplexis is backed by ICG, Kaplan, GE Capital, Commerce One, and ?individual investor Lamar Alexander, former secretary of education.?	http://www.simplexis.com?	?	GeoAccess Acquires Sweetwater Health from Bankrupt Caredata?	
	
	OVERLAND PARK, Kan. (VENTUREWIRE) -- GeoAccess, a developer of an Internet 
physician search engine and  managed care software, said it signed an 
agreement to acquire Sweetwater Health Enterprises from Caredata.com, which 
was recently pulled from the Nasdaq and has filed for chapter 7 bankruptcy, 
for an undisclosed amount. GeoAccess will retain some senior managers from 
Sweetwater, but has not yet decided about whether it will taken on other 
Caredata employees. Sweetwater provides medical credential services, 
software, and Internet tools to managed care organizations, hospitals, and 
other healthcare entities. GeoAccess will acquire several products and 
services including PrimeSource and PrimeSourceWeb physician credential 
services. GeoAccess is backed by undisclosed investors including individuals  
	http://www.geoaccess.com
	
	new directors
	?
	Medical App Firm ClinicManager Names New Board Member
	?	?	SOUTHFIELD, Mich. (VENTUREWIRE) -- ClinicManager, an application service ?provider for the medical community, said it has appointed Frank D. Stella to ?its board of directors. Mr. Stella, who will be the sixth member of the ?board, is the founder, chairman, and CEO of F.D. Stella Products. ?ClinicManager, which is currently raising Series B funding, is backed by ?individual investors.  ?	http://www.clinicmanager.com?	?	new people?	??	Workforce ASP Interactive Software Systems Names President?	
	
	FORT LAUDERDALE, Fla. (VENTUREWIRE) -- Interactive Software Systems (ISS), a 
provider of contact center, e-commerce, and enterprise and workforce 
management services, said it appointed Howard Glass as president. Mr. Glass 
has been acting president of the organization since June of this year. Prior 
to joining the company, he served as president of IRT, a contact center and 
CRM outsourcing provider and parent company of ISS. ISS is backed by IRT and 
individual investors.  
	http://www.intersoftsys.com
	
	vw corrections
	?
	Allegis Capital
	?	?	NEW YORK (VENTUREWIRE) -- An item in yesterday's Venture Wire listed an ?incorrect URL for Allegis Capital. The correct URL is ?http://www.allegiscapital.com.?	?	Internet Publishing Group?	
	
	NEW YORK (VENTUREWIRE) -- An item in yesterday's VentureWire incorrectly 
stated the name of the company's new board member. His correct name is Rob 
McCord and he will be the fifth board member, not the sixth.   
	
	company index
	?	?	@Stake, BreedLab, ClinicManager, Datek Online Holdings, Echo Networks, ?FastCamel.com, Financial Directions, GeoAccess, iChoose, Interactive Software ?Systems, Mazu Networks, Momenta Inc., NetSales, Quova, Simplexis, Stockback, ?VerticalOne, ViaFone, Walker Digital, Wide Learning, Yodlee.com?	?	?	?	Where will you find the world's leaders in the optical?	communications industry discussing the latest trends,?	developments, and future direction of the field??	Optix2001 Feb 11-14 in Pasadena CA.?	?	Be on the cutting edge of optical communications technology?	with industry experts and scholars such as Joe Bass, VP and?	GM of the Wavelength Routing Business Unit at Cisco Systems,?	and John E. Bowers, Professor and Director of the?	Multidisciplinary Optical Switching Technology Center at?	UC Santa Barbara.?	?	Also participating are CEOs from the top 48 optical?	communications organizations, providing attendees with an?	unparalleled inside look at the companies and players in?	this dynamic field.?	?	Participation at this event is subject to approval and is?	limited to senior executives involved in the optical?	communications industry. For your registration pack link ?to:http://www.optix2001.com/?	?	?	investor index?	
	
	American Pacific Technology Group, Authosisa, Benchmark Capital, Draper 
Fisher Jurvetson, Greylock Management, Matrix Partners, Partech 
International, Redpoint Ventures, RRE Ventures, Warner Music Group
	
	
	
	
	
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