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         	&nbsp;<font face="verdana, verdana, arial, geneva, helvetica" size=1 color="white"><b>For Jeffrey Dasovich, Enron</b></font>
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  		<b>VENTURE MARKET SUMMARY</b>
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  		<td><BR><div id="market"><font face="verdana, arial, geneva, helvetica" size="2">In the wake of last week&#39;s terrorist attacks, more than 50 venture capitalists surveyed told VentureWire that they were continuing to source deals and look for investments, and that the attacks did not sway them against investment. <br><br>European venture capitalists expect more of a decline than their American counterparts, and all cited questions about travel as an important issue facing VCs. Whatever economic revival occurs in the near future, no story of survival will top that of TheBeast, whose 62 employees were among the last to escape the World Trade Center in last week&#39;s attack and continues to operate from various locations while searching for new office space.  <br><br>Evidence of venture confidence remained, as nine companies raised over
$130 million. Tunable laser provider Agility raised a whopping $83-million third round. Financial advisory firm Envestnet PMC raised $17.5 million in its second round. DragonWave raised an $8.9-million second round of funding. And the M&amp;A field made a showing with EMC buying Luminate Software for $50 million.  <br><br>But bad news continued. Online financial services firm OffRoad Capital closed up shop after two rounds of layoffs earlier this year and the ironically named Gotajob.com also shut down. <br><i> - By <a href="mailto:sheahan@technologicp.com">Matthew Sheahan</a></i></font></div></td>
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October 9:<BR>San Francisco, CA<BR></font>
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Biotech and drug development are hot!  In 2001 venture money has been flowing in, but will it last? We&#39;ve convened four industry roundtables with a mix of venture capital, pharmaceutical, regulatory, biotech and investment professionals to put the sector in perspective. <a href="http://secure.technologicpartners.com/hcoregister.asp"> Register today to learn more! </a></font>

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	<TABLE BGCOLOR="#eeeeee"><TR><TD><PRE>Saving Costs via Optics

With capital scarce and bandwidth aplenty, optical
components manufacturers face tough market conditions.
Now, systems companies are focusing on reducing costs
and helping carriers do more with the capacity they
already have. Happily, a number of optical technology
companies appear well positioned to capitalize on this
trend. At Optical Portfolio, you&#39;ll hear from startups
such as Symmorphix, Telephotonics, Pine Photonics, and
Proximion Fiber Optics, which are using integration,
tunability, and real-time network monitoring to create
more intelligent and efficient optical networks.

VentureWire Optical Portfolio, Boston Marriott Cambridge,
October 24 & 25. Register online:
	<a target= "_new" href="http://venturewire.com/ads/ad.asp?id=1274">&nbsp;http://www.opticalportfolio.com</a></PRE></TD></TR></TABLE>
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        	<a href="http://venturewire.com/index.asp"><font face="verdana, verdana, arial, geneva, helvetica" SIZE=2 color="black"><b>VENTUREWIRE INDEX</b></font></a>
        	<a href="http://venturewire.com/index.asp"><img alt='VentureWire Index' border='0' src="http://208.185.40.7/charts/images/newsAVWIX.jpg"></a><br>
        	<font face="verdana, arial, geneva, helvetica" size="1" color="gray">515.6 &nbsp; +0.72%</font>
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	<font face="verdana, verdana, arial, geneva, helvetica" SIZE=2 color="black"><b>NOTABLE DEALS</b></font><BR><BR>
	<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwQLLQLQIPHI"><b><font face="verdana, arial, geneva, helvetica" size="2">Investments Sink Since Attacks, But VCs Vow to Move Forward</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=QLLQLQIPHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">NEW YORK -- Though many believe it&#39;s too early to assess the fallout for an industry that is already experiencing substantial slowdown, venture capitalists say they do not expect last week&#39;s terrorist attacks to have a marked impact on their activity. In a VentureWire survey of nearly 100 leading venture capital firms, investors said they continue to evaluate new deals in the wake of the attacks, that few deals in progress had been affected, and that their pace of investment is unlikely to change in the year ahead as a result of the attacks.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=QLLQLQIPHI">more..</a>]--><br></td></tr></table><br>
<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwINIHNIIPHI"><b><font face="verdana, arial, geneva, helvetica" size="2">Tunable Laser Firm Agility Raises $83 Million in Round Three</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=INIHNIIPHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">SANTA BARBARA, CALIF. -- Agility Communications, a provider of widely tunable lasers for the metro, switching, and long-haul markets, is expected to announce that it has raised $83 million in Series C financing from Alliance, Ciena, General Motors Investment Management, Global Strategic, Granite Global Ventures, Meritech Capital Partners, Morgenthaler Ventures, Tellabs, U.S. Venture Partners, and  Worldview Technology Partners. Agility will use the funds for continued product development and sales and marketing.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=INIHNIIPHI">more..</a>]--><br>
<a href="http://www.agilitycom.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.agilitycom.com</font></a>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwNQLJLHHPHI"><b><font face="verdana, arial, geneva, helvetica" size="2">Luminate Software Sold to EMC for $50 Million</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=NQLJLHHPHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">HOPKINTON, MASS. -- EMC, a publicly traded provider of storage systems, software, networks, and services, said it has acquired Redwood City, Calif.-based Luminate Software, a provider of performance monitoring software for storage-intensive applications, for $50 million.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=NQLJLHHPHI">more..</a>]--><br>
<a href="http://www.emc.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.emc.com</font></a>
<br>
<a href="http://www.luminate.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.luminate.com</font></a>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwNQQPPLIPHI"><b><font face="verdana, arial, geneva, helvetica" size="2">Survivors of WTC Attack: TheBeast Regroups For Business</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=NQQPPLIPHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">NEW  YORK  -- While the aftershocks of last Tuesday&#39;s terrorist attack on the World Trade Center extend beyond New York City, those at the heart of it are still feeling them strongly. Located in Suite 8067 on the 80th floor in One World Trade Center, financial services firm TheBeast was spared. The company&#39;s entire on-site workforce escaped from the north building without injury. Though the firm has a staff of 62 people, only 17 were present when the first attack occurred. CEO Geoff de Lesseps said the company is pulling together and doing its best "in the face of terrible calamity."
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=NQQPPLIPHI">more..</a>]--><br>
<a href="http://www.thebeast.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.thebeast.com</font></a>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwILNPJHIPHI"><b><font face="verdana, arial, geneva, helvetica" size="2">EnvestnetPMC Lands $17.5M Round Two</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=ILNPJHIPHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">CHICAGO -- EnvestnetPMC, a provider of managed accounts and practice-management technologies for financial advisers, said it closed its second round of financing with $17.5 million from previous investors Apex Investment Partners, Edgewater Funds, and the Talon Opportunity Fund, and new investors Keystone Venture Capital and Orca Bay Partners
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=ILNPJHIPHI">more..</a>]--><br>
<a href="http://www.envestnetpmc.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.envestnetpmc.com</font></a>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwLLMHJNIPHI"><b><font face="verdana, arial, geneva, helvetica" size="2">Del Mar Raises $7.5 Million in Series A, Appoints New CEO</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=LLMHJNIPHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">SAN DIEGO -- Del Mar Database (DMD), a provider of software for small and midsize mortgage lending companies, said it has closed $7.5 million in Series A funding from MHT Partners, Timeline Ventures, and Titan Investment Partners (TIP). Concurrent with the funding, Stu Clifton joins the company as president, director, and CEO.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=LLMHJNIPHI">more..</a>]--><br>
<a href="http://www.delmardb.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.delmardb.com</font></a>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwIJKNPNIPHI"><b><font face="verdana, arial, geneva, helvetica" size="2">Cradle Technology Plans First Product, Seeks $10 Million</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=IJKNPNIPHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">FREMONT, CALIF.  -- Cradle Technology, a fabless semiconductor company planning to launch its first product next year, is seeking at least $10 million in funding within the next six months, president and CEO, Satish Gupta, told VentureWire.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=IJKNPNIPHI">more..</a>]--><br>
<a href="http://www.cradle.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.cradle.com</font></a>
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<TABLE BGCOLOR="#eeeeee"><TR><TD><PRE>Hitting and Missing In the Drug Discovery Goldmine
Genomics and proteomics have opened up new realms of
drug discovery. Some investors have rushed in, but
others haven&#39;t forgotten the lessons learned in previous
biotech booms. Remember gene therapy? There will be
winners and losers in the race to create a new era in
drug therapy. Healthcare Outlook has dedicated a special
track for management presentations by private companies
in genomics and proteomics. We also will convene a
special industry roundtable: From Laboratory to The
Pipeline led by James Reddoch, VP & Senior Research
Analyst, Healthcare Group, Banc of America Securities.
He&#39;ll be joined by:
*Michael Grey, Chief Business Officer, Structual Genomix
*Lowell T. Harmison, Former Deputy Assistant Secretary of
Health, Department of Health and Human Services
*Daniel Janney, Partner, Alta Partners
*Gary Zweiger, Director, Strategic Business Development,
Development, Life Sciences, Agilent Technologies
Come see the companies that will create the change and
the experts that can put it in perspective, Healthcare
Outlook on October 9 in San Francisco. Register today at:<br><A target= "_new" href="http://venturewire.com/ads/ad.asp?id=1275">http://www.healthcareoutlook.com</a></PRE></TD></TR></TABLE><br>
<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwMJJKJLIPHI"><b><font face="verdana, arial, geneva, helvetica" size="2">WebGain Pulls IPO Citing Troubled Market </font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=MJJKJLIPHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">SANTA CLARA, CALIF. -- WebGain, a developer of e-business application software, filed a request to withdraw its IPO on Thursday, according to SEC records. The request cited poor market conditions as the reason for withdrawal, but WebGain could not be reached for further comment.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=MJJKJLIPHI">more..</a>]--><br>
<a href="http://www.webgain.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.webgain.com</font></a>
</td></tr></table><br>

<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwNMLOMKIPHI"><b><font face="verdana, arial, geneva, helvetica" size="2">Google Acquires Search Firm Outride</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=NMLOMKIPHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">MOUNTAIN VIEW, CALIF. -- Google, a provider of Internet search technologies, announced the acquisition of intellectual property from Outride, a Redwood City, Calif.-based developer of online-information-retrieval technologies. Financial terms of the deal were not disclosed.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=NMLOMKIPHI">more..</a>]--><br>
<a href="http://www.google.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.google.com</font></a>
<br>
<a href="http://www.outride.net" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.outride.net</font></a>
</td></tr></table><br>

<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwQNOLMMIPHI"><b><font face="verdana, arial, geneva, helvetica" size="2">ERGO Equity Partner Raising $139M Media Fund</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=QNOLMMIPHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">MUNICH, GERMANY -- Venture firm ERGO Equity Partner, a subsidiary of ERGO Insurance Group, announced that it is in the process of raising a new fund -- the Entertainment Equity Pool -- expected to close in December at EUR 150 million ($139 million). The fund, which will be raised in a partnership with media firms IM Internationalmedia and Mediastream, will focus on content firms focused on television, film, music, interactive media, and entertainment software.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=QNOLMMIPHI">more..</a>]--><br>
<a href="http://www.eep-ag.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.eep-ag.com</font></a>
</td></tr></table><br>
<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwQJILKNHPHI"><b><font face="verdana, arial, geneva, helvetica" size="2">Charter Ventures Launches Fellows Program for New Companies</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=QJILKNHPHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">PALO ALTO, CALIF. -- With VCs still feeling the sting of a rash of failed dot-coms, Charter Ventures has implemented a new Charter Fellows Program to help its early-stage portfolio companies get off to a good start. But unlike typical entrepreneur-in-residence programs where an executive is brought into a portfolio company full-time, Charter Fellows are appointed to young companies to help with the product-development phase, working with a company for about six months.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=QJILKNHPHI">more..</a>]--><br>
<a href="http://www.charterventures.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.charterventures.com</font></a>
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	<TABLE BGCOLOR="#eeeeee"><TR><TD><PRE>Can A New Generation of Companies Change Clinical Trials

The long and expensive $500 million drug approval process
is ripe for innovation.  Healthcare Outlook has dedicated
a special track for management presentations by private
companies hoping to seize the opportunity. We also will
convene a special industry roundtable: From the Pipeline
Through Clinical Trials led by venture capital veteran
Sam Collela of Versant Ventures.  He&#39;ll be joined by:
*Jeff Augen, Director, Business Strategy, Life Sciences,
IBM
*C. Thomas Caskey, President & CEO, Cogene Biotech
Ventures
*Rodney A. Ferguson , General Partner, JP Morgan
*James D. Utterback, Chief Executive Officer, PHT Clinical
Networks

Come see the companies that will create the change and the
experts that can put it in perspective, Healthcare Outlook
on October 9 in San Francisco. Register today at:
	<A target= "_new" href="http://venturewire.com/ads/ad.asp?id=1276">http://www.healthcareoutlook.com</a></PRE></TD></TR></TABLE>
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