?	
?	'VentureWire'
	Monday, November 27, 2000	?
?	CONTENTS | COMPANIES | INVESTORS	?
?	
	
	
	top stories
	
	* Incubator Walker Digital Fires All Employees, Shuts Down
	* Healthcare Tech Firm SoftWatch Lays Off 20% of Staff
	* E-Business Apps Manager XOR Raises $33.5 Round Two
	* Investing App Firm Investhink Taps Reuters Exec as Chairman
	
	
	
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	new money
	
	* Mobile Services Firm Ayeca Gets $3.5 Million In Seed Funding
	* Trading Platform Firm NetSys Raises $4.5 Million First Round
	* Employee Screening Firm eScreen Has $1 Million First Round
	* Gaming Firm Butterfly.net Secures $500,000 Seed Round
	* Micro-Lab Tech Firm HandyLab Gets $2.4 Million in Round One
	* Delivery Optimization Firm BoostWorks Raises $21 Million
	* Kelyan, E-Business Application Service, Raises $7.2 Million
	* Business Database WynWyn Gets $6 Million in Series B
	* Optical Tech Firm Lenslet Secures $26 Million in Third Round
	* ETF Puts $3.3 Million in Insurance Tech Firm Quote and Buy
	* Location-Based Info Provider Wcities Gets $15 Million 
	* Online Florist Flowergrower.com Secures $1.6 million 
	* Shopping Site Mall.com Receives $5.8 Million
	* Travel Site Travelstore.com Raises GPB 7 Million Third Round
	* Target Partners Invests in German Net Video Firm InterMedia
	
	
	m&a
	
	* Online Photo Sharing Service Fotango Acquires German Rival
	
	
	new directors
	
	* Apps Manager Luminate Names Asera Chief to Board
	* Need2Buy.com Appoints Akamai Exec As Vice Chairman
	* Finance ASP SecureGift Appoints Election.com Exec To Board
	
	
	new people
	
	* Digital Rights Firm MediaDNA Names Former Anacomp Exec CEO
	
	
	vc fund news
	
	* Andersen Consulting Launches New Business Centre in Texas
	
	
	TOP STORIES... NEW MONEY... M&A... NEW DIRECTORS... NEW PEOPLE... VC FUND NEWS
	
	
	
	
	
	
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	top stories
	?
	Incubator Walker Digital Fires All Employees, Shuts Down
	?	?	STAMFORD, Conn. (VENTUREWIRE) -- Walker Digital, an incubator for Internet ?startups and creator of priceline.com, laid off all one hundred of its ?employees, shut down, and has stopped funding its developing startups, ?according to Dianne Zaremba, who worked in media relations at Walker until ?this week's lay-offs. Ms. Zaremba said the company will stop funding four ?startups: Pulse, Atlantis, HighCircle, a recruitment services firm, and ?RetailDNA, a commerce technology company. Walker Digital's founder Jay Walker ?could not be reached for comment. The company's investors included General ?Atlantic Partners, Allen & Co., Bain & Co., Vulcan, and Goldman Sachs.?	http://www.walkerdigital.com?	?	Healthcare Tech Firm SoftWatch Lays Off 20% of Staff?	
	
	NEW YORK  (VENTUREWIRE) -- SoftWatch, which develops and sells healthcare 
industry technology, said it laid off 30 employees, or 20% of its staff, in 
its New York and Israel offices. The Tel Aviv office was the strongest hit by 
the layoffs, with 22 positions eliminated, and the New York office eliminated 
eight positions, all in the professional services sector. The company said 
the layoffs were a result of its shift in business strategy, stating that it 
plans to sell through third party integrators and alliance partners. Despite 
the layoffs, the company said it will continues to hire in its research and 
development and sales departments. The company said it expects a 2.5% 
increase over last year's revenues. SoftWatch is funded by Warburg, Pincus 
Equity Partners, ABS Capital Partners, Bedrock Capital, and MedScape.
	http://www.softwatch.com
	
	E-Business Apps Manager XOR Raises $33.5 Round Two
	?	?	BOULDER, Colo. (VENTUREWIRE) -- XOR, an Internet business applications ?manager, said it has raised $23.5 million in venture capital and $10 million ?in credit facility as part of its second round of financing. Lexington ?Partners led the round with new investor Far West Capital Management and ?previous investors Frontenac and Minotaur Capital Management also ?participating. The credit facility is from Silicon Valley Bank. The company ?said there will be no board changes and that it will use the funds to develop ?its technology.    ?	http://www.xor.com?	?	Investing App Firm Investhink Taps Reuters Exec as Chairman?	
	
	LONDON (VENTUREWIRE) -- Investhink, which makes online investing and 
financial services applications for the investment firm industry, said it has 
appointed John Parcell as chairman of its board. Mr. Parcell was chief 
executive of the Reuters Information division and executive director and a 
board member of Reuters Group. Investhink is backed by London-based Sigma 
Technology Group and has offices here and in New York.    
	http://www.investhink.com
	
	new money
	?
	Mobile Services Firm Ayeca Gets $3.5 Million In Seed Funding
	?	?	ROSH HAAYIN, Israel (VENTUREWIRE) -- Ayeca, which provides technology and ?services for mobile applications service and subscriber management, raised ?$3.5 million in its seed funding according to lead investor Israel Seed ?Partners. Additional investors in the round included Novell and Anschutz ?Investment. The company will use the funding to complete product development ?and generate its first beta sites. Alan Feld, a general partner with Israel ?Seed Partners, will take a seat on the company's board of directors. ?	http://www.ayeca.com?	?	Trading Platform Firm NetSys Raises $4.5 Million First Round?	
	
	LONDON (VENTUREWIRE) -- NetSys, which develops and provides technologies for 
online trading platforms, said it raised GBP 3.2 million ($4.5 million) in 
its first round of funding. Investors in the round included 3i, Carphone 
Warehouse, and G Partners. The company said it will use the funding to expand 
its services across continental Europe and to hire new employees. 
	http://www.netsystechnologies.com
	
	Employee Screening Firm eScreen Has $1 Million First Round
	?	?	OVERLAND PARK, Kansas (VENTUREWIRE) -- eScreen, a developer and manufacturer ?of employment screening products, said it received $1 million in its first ?round from Avert, a publicly-traded company that provides human resources ?services. Dean Suposs, president and CEO of Avert, will join the board of ?directors. The company will use the funds to continue development on its drug ?testing product and to hire staff.?	http://www.escreen.com?	?	Gaming Firm Butterfly.net Secures $500,000 Seed Round?	
	
	SHEPHERDSTOWN, W.V. (VENTUREWIRE) -- Butterfly.net, a software infrastructure 
company for the multiplayer online role-playing game industry, said it  
closed a $500,000 seed round of financing from Walker Ventures, an 
early-stage fund. The company said it will use the funds to bring to market 
its service for deploying and managing games across multiple connected 
platforms, including hand-held devices, PCs, and dedicated game consoles. 
Gina Dubbe, managing director of Walker Ventures, will join the board of 
directors  
	http://www.butterfly.net
	
	Micro-Lab Tech Firm HandyLab Gets $2.4 Million in Round One
	?	?	ANN ARBOR, Mich. (VENTUREWIRE) -- HandyLab, a developer of rapid test, ?micro-sized lab technology that enables physicians and healthcare ?practitioners to get diagnostic information at the point of care, said it ?raised $2.4 million in its first round of funding. Investors were EDF ?Ventures, Avalon Investments, Wolverine Fund, and XR Ventures. The company ?will use the funds to develop its working prototype.?	http://www.handylab.com?	?	Delivery Optimization Firm BoostWorks Raises $21 Million?	
	
	SAN FRANCISCO (VENTUREWIRE) -- BoostWorks, which provides optimization 
technologies for content and data delivery online, said it raised $21 million 
in its third round of funding. The round was led by 3i and included 
investments from new investors Intel Capital, Yamada, and Wafra Investment 
Advisory Group. The company said it will use the investment to continue its 
global expansion. Previous investors Banque National de Paris Private Equity, 
Innovacom, Partech International, Sofinnova Partners, and Cross Atlantic 
Partners also participated in the funding. Stuart Chapman of 3i will take a 
seat on the BoostWorks board of directors as a a result of the investment. 
	http://www.boostworks.com
	
	Kelyan, E-Business Application Service, Raises $7.2 Million
	?	?	LONDON (VENTUREWIRE) -- Kelyan, an e-business application provider and site ?developer formerly known as Integra, said it raised EUR 8.6 million ($7.2 ?million) from Apax Partners. Kelyan, a member of the Franco Bernabe Group, ?will use the investment to continue its growth and development both ?internally and through acquisitions. The Kelyan investment represents the ?first move in a broader partnership between Apax Partners and the Franco ?Bernabe Group. ?	http://www.kelyan.com?	?	Business Database WynWyn Gets $6 Million in Series B?	
	
	CHICAGO (VENTUREWIRE) -- WynWyn, which provides an online directory of 
services and businesses, said it raised $6 million in its Series B round of 
funding. Investors included Wheatly Partners, Ramius Capital, BlueVector, 
Dalewood Associates, and Dalewood 2. The company will use the funds to expand 
its database, listings, and to develop its search and data applications. 
	http://www.wynwyn.com
	
	Optical Tech Firm Lenslet Secures $26 Million in Third Round
	?	?	RAMAT-GAN, Israel. (VENTUREWIRE) -- Lenslet Labs, which develops lightspeed ?optical signal technologies, said it has secured $26 million in its third ?round of funding led by JK&B Capital and The Goldman Sachs Group. Other ?investors in the round include eXseed Technology Investments, Walden VC, and ?Star Ventures. The company said it will use the funding for further product ?development, expanding laboratory facilities, hiring additional staff and ?expanding international market presence.    ?	http://www.lenslet.com?	?	ETF Puts $3.3 Million in Insurance Tech Firm Quote and Buy?	
	
	LONDON (VENTUREWIRE) -- ETF Group, which provides global venture capital 
services, said it invested GBP 2.5 million ($3.3 million) in Quote and Buy, a 
provider of insurance technology and information online. Quote and Buy 
enables online insurance quotation, purchasing, policy adjustments, and 
cancellations. The company said it will use the funds to support technologies 
for its U.K. and international distribution portals.
	http://www.qandb.com
	
	Location-Based Info Provider Wcities Gets $15 Million 
	?	?	LONDON (VENTUREWIRE) -- Wcities, a location-based information services ?provider, said it raised $15 million from BTopenworld, giving BTopenworld a ?17% equity stake in the company. Wcities will provide BTopenworld customers ?with mobile, narrowband, and broadband services to access information in 230 ?cities as part of the deal. The service will be expanded to 400 cities by ?spring 2001. ?	http://www.wcities.com?	?	Online Florist Flowergrower.com Secures $1.6 million ?	
	
	MIAMI (VENTUREWIRE) -- Flowergrower.com, an online procurement service for 
the floral industry, said it has secured $1.6 million from individual 
investors. The company, which launched last month, allows retailers to choose 
the source of the product, order flowers by the bunch, and select the 
shipping method.  
	http://www.flowergrower.com
	
	Shopping Site Mall.com Receives $5.8 Million
	?	?	AUSTIN, Texas (VENTUREWIRE) -- Mall.com, an online shopping and entertainment ?site, said it received $5.8 million from previous investor Eco Associates, an ?affiliate of Interfase Capital. The company is also backed by individual ?investors.   ?	http://www.mall.com?	?	Travel Site Travelstore.com Raises GPB 7 Million Third Round?	
	
	LONDON (VENTUREWIRE) -- Travelstore.com, a travel content site for business 
travelers and corporate clients, said it has raised GPB 7 million ($10 
million) in its third round of financing from existing investors including 
3i, Elderstreet Capital Partners, New Media Spark, ETF Finance, Cross 
Atlantic, and Wellington partners. Travelstore said it will make no board 
changes and that it will use the funds to bring the company to profitability.
	http://www.travelstore.com
	
	Target Partners Invests in German Net Video Firm InterMedia
	?	?	MUNICH, Germany (VENTUREWIRE) -- Target Partners, a venture capital firm, ?said it has invested EUR 2.5 million ($2.1 million) in InterMedia Solutions, ?which develops online television news and software technology for Internet ?video transmission. The capital will go toward the development and ?distribution of software designed for the parallel transmission of videos, ?images and text on the Internet.    ?	http://www.intermedia-solutions.de?	?	m&a?	??	Online Photo Sharing Service Fotango Acquires German Rival?	
	
	LONDON (VENTUREWIRE) -- Fotango, an online photography posting service, said 
it acquired German-based rival Goop.de. Financial details of the acquisition 
were undisclosed. Fotango is active in the U.K. and France and intends to 
launch its German operations within the next month following the Goop 
acquisition. The management team of Goop.de will join the staff of Fotango's 
German venture. Goop.de was self funded. Fotango is backed by investors 
including Arts Alliance, Wellington partners, and Venture Partners.
	http://www.fotango.co.uk
	http://www.goop.de
	
	new directors
	?
	Apps Manager Luminate Names Asera Chief to Board
	?	?	REDWOOD CITY, Calif. (VENTUREWIRE) -- Luminate, which provides real-time ?monitoring and alerts for online applications management firm, said it has ?appointed Warren Weiss, president and CEO of Asera, an Internet business ?applications firm, to its board of directors. Luminate is backed by the ?Mayfield Fund, IVP, and Azure Capital. ?	http://www.luminate.com?	?	Need2Buy.com Appoints Akamai Exec As Vice Chairman?	
	
	WESTLAKE VILLAGE, Calif. (VENTUREWIRE) -- Need2Buy.com, an online marketplace 
for the global electronic components industry, said it has appointed Arthur 
Bilger as vice chairman of the company's board. Mr. Bilger, a founding 
partner of Shelter Ventures, is the vice chairman of Akamai Technologies, a 
provider of global services for the delivery of Internet content, streaming 
media and applications. Shelter Ventures has invested in Need2Buy.com, which 
is also backed by Baker Capital, Infineon, Rustic Canyon Group, Trust 
Company, World Peace Industrial, TMCT Ventures, Star Ventures, Mitsubishi, 
and Jump Investors. 
	http://www.need2buy.com
	
	Finance ASP SecureGift Appoints Election.com Exec To Board
	?	?	MIAMI (VENTUREWIRE) -- SecurityGift Technologies (SGT), an ASP that processes ?financial gifts of stock, bonds and mutual funds for financial institutions, ?said it has appointed Charles Smith, the acting chief financial officer of ?Election.com, to its board of directors. Mr. Smith also serves as vice ?president of mergers and acquisitions at Election.com, which designs and ?manages traditional and Internet-based elections and surveys for private ?organizations and political jurisdictions around the world. SGT is backed by ?individual investors and Spaulding Ventures.   ?	http://www.securegift.net?	?	new people?	??	Digital Rights Firm MediaDNA Names Former Anacomp Exec CEO?	
	
	LA JOLLA, Calif. (VENTUREWIRE) -- MediaDNA, which provides digital rights 
management, said it appointed Ralph W. Koehrer as president and CEO. Mr. 
Koehrer was president and CEO of Anacomp, which provides document services to 
businesses. MediaDNA is funded by Adams Capital Management.
	http://www.mediadna.com
	
	vc fund news
	?
	Andersen Consulting Launches New Business Centre in Texas
	?	?	DALLAS (VENTUREWIRE) -- Andersen Consulting, a global management and ?technology consulting organization, said it has launched a new facility, ?Business Launch Centre, in Texas. In addition to making investments, the new ?Centre will offer technology startups and spin-offs management, finance, ?administration and technology expertise services. John Romanow, a partner ?with Andersen Consulting's Communication practise, and Mitch Cline, a partner ?in the firm's electronics and high tech practise, will head the Centre. ?Andersen Consulting, which is changing its name to Accenture, said Business ?Launch Centre is currently working with startups Seperateaccounts.com and ?RocketLogix.    ?	http://www.ac.com?	?	company index?	
	
	Andersen Consulting, Ayeca, BoostWorks, Butterfly.net, eScreen, 
Flowergrower.com, HandyLab, Investhink, Kelyan, Luminate Software, Mall.com, 
MediaDNA, Need2Buy.com, Quote and Buy, SecurityGift Technologies, Softwatch, 
Starting Point Partners, Travelstore.com, Walker Digital, Wcities, WynWyn, 
XOR
	
	
	
	CONNECTED COFFEE?
	
	It's no longer a pipe dream. Lavazza and eDevice have
	unveiled the world's first Internet-enabled espresso maker.
	Further, Web tablets, Internet radios, and other connected
	appliances are popping up everywhere. But business models
	and revenue streams have proven elusive. The consumer
	devices panel at Technology  Outlook 2000, will explore
	some of the difficulties of this emerging market with:
	
	* Safi Qureshy, Chairman, AudioRamp
	* Daniel H. Rimer, Partner, The Barksdale Group
	* Kent Savage, President & CEO, Netpliance
	* Michael Slater, President, PhotoTablet
	
	Technology Outlook 2000: The Future of Pervasive Computing
	December 4 and 5, San Franciscohttp://technologicpartners.com/tp/conf/to2000/
	
	
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