?	
?	VentureWire
	Tuesday, June 05, 2001		?
?	CONTENTS | COMPANIES | INVESTORS | ADVERTISE | TELL A FRIEND	VentureWire Index
		'VentureWire
		today: 665.1 ? -2.55%	?
? 		
		
		top stories
		
		  William Blair Capital Partners Gets $403M for Fund VII
		  Vitesse Acquires Versatile Optical Networks for 10M Shares
		  Guggenheim to Launch For-Profit Art Site with VC Backing
		  Warburg Pincus Takes The Cobalt Group Private
		 
		
		TODAY'S FEATURES 
		Patricof & Co.'s Early Stage Team Stays The Course
		By Amanda Briggs
		Michael Duran, a partner at venture firm Patricof & Co., has spent the last 
couple of months looking at Series C deals, an unusual move because Mr. Duran 
was hired last February to focus on early stage deals in the 
telecommunications equipment and component sectors. more>>
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However, the e-finance landscape is still largely undefined. Financial 
Services Outlook will help define the future.  Register before June 19 and 
SAVE $100! 
		
		
		Outlook for the Venture Capital Market
		* 20th Univ. of Michigan Growth Capital Symposium, June 19-20
		* Meet with LPs and GPs of successful funds. Interact with
		execs from life sciences, MEMS, Telematics & IT firms
		* Outlooks include Kleiner Perkins Caufield & Byers,
		Draper Fisher Jurvetson, State of Michigan Pension Fund.
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		Equity Finance at the University of Michigan --- serving
		the institutional VC community for 20 years.
		* Call 734-936-3528 or view the Center's website for 
details:http://www.umich.edu/~cvpumbs
		
		
		
		
		
		
		new money
		
		  Corporate Backed Integres Eyes First VC Round
		  Optical Firm Calix Out of Hiding With $158 Million
		  Avaki Announces $6M Series A, New Name, New CEO
		  Content Management Developer Cytura Gets $11M Round One
		  Grass Valley Grabs $36 Million In First Outside Round
		  Electronics Design Tool Firm Atrenta Gets $6.7M Series A
		  Flat Panel Co. ClairVoyante Labs Gets $4 M in Series A Funds
		  Financial Tech Firm Mantas Closes First Round  
		 Lucent Takes Equity in Traffic Info Firm MetroCommute.com
		  Delphi Display Systems Gets $3 M Series A from Eaglestone 
		 Fabless Semiconductor Firm Banderacom Gets $35M Round Two
		  Optical Device Maker Optium Raises $35.5 Million Round Two
		  OSS Software Maker AP Engines Closes $30 Million Round Two
		  Software Maker Harmonic Closes Series B at $15.2M
		  Wireless Provider Bluefish Gets $1.8 in Second Round Funds
		  Information Software Firm Casmir Raises $1.6M Second Round
		  NxtPhase Raises $25 Million in Round Three
		  SafeRent Collects $13.4 Million in Round Three
		  HydroCision Gets $2M from Oxford Bioscience, Closes Series E
		  PC Management Tech Firm Connected Raises $30M Series F
		  Qpass Clears $15 Million in Series F 
		 Web-Based Planning Software Adaytum Gets $7.4 M Series F
		  Naviant, Online Marketing Technology Firm, Gets $15 Million
		
		
		bad news
		
		  Report: MetaTV Co-Founder, CEO is Arrested 
		 AtomShockwave President Steps Down, Firm Closes Offices
		  Site Monitoring Firm webHancer Cuts 10% of Staff
		  Bitlocker.com to End Web Database Infrastructure Service
		
		
		new products
		
		  Telco Soma Networks to Launch with $70 M Raised to Date
		  Hardware Manufacturing Software Firm Bom.com Launches
		  ForwardAction Launches to Help Sacramento Area Startups
		  Biotech Firm Mycometrix Changes Name to Fluidigm
		  Software Infastructure Firm Gazoo Changes Name to Talaris
		  GDX Changes Name of Six Affiliates 
		
		
		m&a
		
		  Schroder Ventures Acquires Market Place Media For $28M Cash
		  Progress Software Acquires Allegrix 
		 Mobile App Firm Everypath Buys Sitraka's Mobility Division
		
		
		new directors
		
		  NETdelivery Appoints CDP Sofinov Exec. as New Director
		  Wall Street Global Appoints CML Executive to Board
		
		
		new people
		
		  Iris Labs CEO Joins Metera Networks as CEO
		  MobileStar Appoints WorldCom Head as President & CEO
		  World Wide Packets Adds Architel Systems Co-founder as Pres.
		
		
		vc fund news
		
		  Leader Capital's Next Joint Venture: Solvos Asia
		
		
		vw corrections
		
		  Bodha
		  Silicon Alley Seed Investors
		
		 TOP STORIES... NEW MONEY... BAD NEWS... NEW PRODUCTS... M&A... NEW 
DIRECTORS... NEW PEOPLE... VC FUND NEWS... VW CORRECTIONS
		
		
		top
		
		
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		attention from customers and investors.
		
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		machine-to-machine, application-to-application, and
		person-to-person.
		
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today:http://www.enterpriseoutlook.com/register.asp
		
		
		
		 top stories 
		?
		William Blair Capital Partners Gets $403M for Fund VII
		 mail? top
		
		 CHICAGO (VENTUREWIRE) -- William Blair Capital Partners, which makes 
venture-capital and later-stage investments, including management buyouts and 
recapitalizations, announced it has closed $402.86 million for WBCP VII, its 
seventh fund. Managing Director David Chandler said it took the firm nine 
months to raise the fund, which held its initial closing at the end of last 
year. WBCP, which raised $270 million in its previous fund, will continue to 
invest in business and communications technology, healthcare, and business 
and consumer services companies, said Mr. Chandler. He added that the company 
will pursue co-investment opportunities with other venture capital firms. 
Under the terms of the fund, he said the partners will receive 2% management 
fees. Mr. Chandler said that WBCP VII has invested $10 million each in two 
companies so far: Clear Communications, a provider of network management 
software for optical networks, and medical-device company NuVasive. The 
company intends to invest between $7 million and $30 million in 20 to 30 
companies during the life of the fund.  Mr. Chandler commented that overall, 
deal-flow has slowed tremendously because "many people are not happy with 
valuations." He said WBCP is evaluating many deals it passed on months ago 
that are returning at a much lower valuations. WBCP has raised over $1 
billion of committed capital in seven private equity funds and has invested 
in over 140 companies.
		http://www.wbcp.net
		
		
		Vitesse Acquires Versatile Optical Networks for 10M Shares
		 mail? top
		
		 SAN JOSE, Calif. (VENTUREWIRE) -- Versatile Optical Networks, which designs 
and manufactures optical and opto-electronic modules for data and 
communications networks, said it has entered into an agreement to be acquired 
by Vitesse Semiconductor for 10 million shares of Vitesse common stock. 
Vitesse said the deal is expected to be completed by the end of September and 
its value will be calculated based on the price of Vitesse's stock at the 
close of the transaction. On Monday, Vitesse was trading at approximately $24 
a share. Vitesse said the two parties already had a working relationship when 
discussions began four weeks ago. Versatile will be integrated into Vitesse, 
and Versatile's co-founders Amit Jain and Roger Hajjar will continue with the 
combined company. No changes are expected in Versatile's 72 person staff, 
which will continue to operate from its San Jose, Calif. office. Founded in 
April 2000, Versatile had received $11 million from Sequoia Capital and 
Telesoft Partners. 
		http://www.versatileoptical.com
		http://www.vitesse.com
		
		
		Guggenheim to Launch For-Profit Art Site with VC Backing
		 mail? top
		
		 NEW YORK (VENTUREWIRE) -- The Solomon R. Guggenheim Foundation, which 
operates an international network of museums, announced the formation of 
Guggenheim.com, a for-profit Web site dedicated to the visual and performing 
arts. The site, which is backed by GE Equity, Pequot Private Equity, and 
Softbank Venture Capital, is set to launch this fall. According to president 
and chief operating officer Judith Cox, Guggenheim.com will be a for-profit 
entity, completely separate in management and operations from the Guggenheim 
Foundation. The company will be a collaboration of the Solomon R. Guggenheim 
Foundation along with participating museums, including The State Hermitage 
Museum in St. Petersburg, Russia; The Albertina in Vienna, Austria; The 
Kunsthistorisches Museum in Vienna; and the Zentrum fur Kunst und 
Medientechnologie/Center for Art and Media in Karlsruhe, Germany. The 
company, which was founded in May 2000, plans to generate revenues from 
channels including advertising and sponsorship, content subscription, 
syndication, and e-commerce. Ms. Cox joined the Solomon R. Guggenheim 
Foundation as general counsel in 1991, and served as its deputy director 
prior to joining Guggenheim.com. Before joining the Guggenheim Foundation, 
she worked as a lawyer with Bankers Trust. Thomas Krens, who is also director 
of the Solomon R. Guggenheim Foundation, will serve as chairman and interim 
CEO of Guggenheim.com. He previously served as planning consultant to the 
Brooklyn Museum. Hani Rashid, a co-founder of architectural and interactive 
digital design firm Asymptote, will serve as the company's chief creative 
officer and chief technology officer. Guggenheim.com, which has raised an 
undisclosed amount of private equity to date, is looking to close a Series B 
round of financing within the next twelve months.
		http://www.guggenheim.com
		
		
		Warburg Pincus Takes The Cobalt Group Private
		 mail? top
		
		 NEW YORK  (VENTUREWIRE) -- In one of the first public-to-private conversions 
for an Internet company, publicly traded firm The Cobalt Group said it would 
become a private company with buyout assistance from Warburg Pincus, one of 
its original venture investors. The Seattle-based company provides Web sites 
and services to online auto dealers and went public in August 1999. The deal 
is structured as a merger with a shell affiliate of Warburg Pincus, which may 
put as much as $35 million into the deal, according to managing director Greg 
Back. Shareholders will receive $3.50 in cash for each share of common stock 
they own. Shares held by Warburg Pincus, about 46% of the company, will not 
be converted in the merger, but some ten million shares representing half the 
company are outstanding. The deal has been in the works for several weeks and 
was an "unsolicited bid" by Warburg Pincus, said John W.P. Holt, The Cobalt 
Group's president and CEO. Mr. Holt owns 3% of the company's shares and will 
remain as its executive. After a special committee of independent directors 
reviewed and recommended the offer, The Cobalt Group's board of directors 
voted unanimously to accept the deal. The transaction is still subject to 
shareholders' approval and SEC review, and will not be completed until 
September. Some aspects of the deal have not been finalized. Mr. Holt said he 
could not comment on whether Chicago-based First Analysis, The Cobalt Group's 
original venture backer and a continued shareholder in the company, would 
sell off its holdings or retain an equity stake. First Analysis, which holds 
a board seat and voted in favor of the deal, could not be reached for 
comment. Mr. Holt said The Cobalt Group's employees were likely to remain 
shareholders but those terms too have yet to be determined. Mr. Back said 
that until the transaction is closed, he would not comment on why Warburg 
Pincus initiated the deal or how The Cobalt Group might benefit from being a 
private company. Recently, several venture firms, including Charter Growth 
Capital and Patricof & Co. have expressed interest in public-to-private 
conversions of tech companies, noting that good deals are available for 
companies that have sound business models but either went public too soon or 
are in sectors out of favor with the market. But until now no venture firm 
has executed such a deal for an Internet company. The Cobalt Group is not 
profitable and does not expect to have positive cash-flow from revenues until 
late this year or early next. The company has seven business units and 630 
employees in five offices around the country. Mr. Holt declined to comment on 
whether the company would return to the public market in the future or be 
acquired. He did say his job "feels a lot more secure today than it did a 
week ago," and said the company's business plan will remain unchanged.
		http://www.cobaltgroup.com
		
		
		 new money 
		?
		Corporate Backed Integres Eyes First VC Round
		 mail? top
		
		 RANCHO CORDOVA, Calif. (VENTUREWIRE) -- Integres Global Logistics, a 
Web-based freight service provider, formally announced itself last week with 
$30 million in corporate financing but the company is already eyeing an 
additional $10 million to $20 million of venture capital to take it to 
profitability in 24 months time. Integres was founded in June 2000 by United 
Airlines, Roadway Express, and Unisys (the three together own more than 50% 
of the company) along with American Airlines, G-Log, and UTi Worldwide. Now 
the company is in discussions with a major West coast venture capital firm 
for an additional investment. Integres' chairman and CEO James Hartigan 
declined to name the VC firm (he said it has more than $1 billion under 
management) saying he wants to keep the company's options open for the right 
match. Mr. Hartigan, formerly vice president of United Airlines Cargo, said 
the company is seeking venture financing to complement its own logistics 
experience with the industry's experience with startups and to take advantage 
of possible business relationships with companies in a venture firm's 
portfolio. Integres plans to launch in the third quarter of this year by 
integrating the services of its founding corporations to provide hard freight 
service options to small and medium-sized businesses. In addition to American 
and United Airlines, Integres also expects to announce partnerships with 
three to five additional international airlines within the next 60 days. 
Although some of its business will overlap with FedEx and UPS, Integres said 
its more direct competition would be with independent small forwarders. The 
company plans to earn revenue as a reseller to airlines and transportation 
companies, through a direct offering, and through franchising options. 
Although revenue goals were unavailable, the company did say it plans to use 
$15 to $20 million out of the $30 million committed by the end of 2001 and 
expects to begin 2002 with the remaining $10 million to $15 million. The 
majority of the financing thus far has been used to set the company up, hire 
staff, lay down the IT framework, and for sales activities. Integres 
currently employs 20 people and plans to triple or quadruple its staff by the 
third quarter. 
		http://www.integres.com
		
		
		Optical Firm Calix Out of Hiding With $158 Million
		 mail? top
		
		 PETALUMA, Calif.  (VENTUREWIRE) -- Calix, a fiber-optic networking company, 
made its first public fundraising announcement, saying it has raised $158 
million over the course of three rounds, with the latest in March, from Azure 
Capital,  contract manufacturer Flextronics, Integral Capital Partners, 
Michael Dell's MSD Capital, Meritech Capital Partners, Pivotal Asset 
manatement, Redpoint Ventures, and individuals Ajaib Bhardare, co-founder of 
Cerent, Carl Russo, vice president of the optical networking group at Cisco. 
The company, valued at approximately $535 million, has hired Flextronics to 
manfacture its product, designed to simplify complex communications 
infrastructure and expand fiber-optic networks. A Calix spokesperson could 
not say when the product would be released. Michael Hatfield,  president and 
CEO, and Tom Corker vice president, optical products, both previously of 
Cerent, founded Calix in 1999. The company now employs 275 people. 
		http://www.calix.com
		
		
		Avaki Announces $6M Series A, New Name, New CEO
		 mail? top
		
		 CAMBRIDGE, Mass. (VENTUREWIRE) -- Avaki, which develops distributed 
computing technology for enterprises, announced it has closed $6 million from 
Polaris Venture Partners as part of its Series A round. David Fish, formerly 
COO of Engage, has also been named CEO, president, and director. The company 
also said it has changed its name from Applied MetaComputing to reflect its 
expanded focus on enterprise software for converging distributed, pervasive, 
and peer-oriented computing. Polaris, which lead the round, is the sole 
investor in this first tranche. A second tranche of the same or slightly 
larger size is expected to close at the end of the summer. Mr. Fish, the new 
CEO, said investors may include other venture capital firms as well as 
strategic investors. Pre-money, Avaki had a valuation of $11 million. Looking 
ahead, Mr. Fish predicted the company would close Series B funding in the 
middle of 2002. However, he said it was too early to predict how much Avaki 
would raise. Avaki anticipates monthly revenues of approximately $100,000 in 
fall 2001 and $500,000 by the second half of 2002. Concurrent with Series A 
financing, Avaki has appointed three new directors from Polaris to the board: 
general partner Mike Hirshland; and venture partners, Bob Metcalfe and Dave 
Barrett. They join Anita Jones, former director of DOD Research and 
Engineering, Mr. Fish, and founder Andrew Grimshaw on the board. In the top 
posts, Mr. Fish replaces Mr. Grimshaw,  who was CEO for two years. Mr. 
Grimshaw, who began working on the technology in 1993 at the University of 
Virginia, now serves as chief technology officer. Mr. Fish was introduced to 
Avaki through Mr. Hirshland of Polaris. New money from the first tranche will 
be used to license intellectual property from the University of Virginia, 
where the distributed computing technology was first developed. The second 
tranche will be used for market development of Avaki's first product, an 
enterprise-class middleware  platform that was released two months ago to 
charter customers and for licensing technology from software vendors. Avaki 
will approximately double in size by the year's end, adding positions for 
sales and marketing and for engineering to its current staff of 22. The 
company is also recruiting vice presidents for business development, 
marketing, and engineering. 
		http://www.avaki.com
		
		
		Content Management Developer Cytura Gets $11M Round One
		 mail? top
		
		 HEATHROW, Fla. (VENTUREWIRE) -- Cytura, which develops XML-based 
enterprise-class portal frameworks for content management, said it has closed 
$11 million in its first institutional round. Lovett Miller and Noro-Moseley 
Partners invested in this round. As a result of the round, Allen Moseley of 
Noro-Moseley and Scott Miller of Lovett Miller will join CEO Raj Toleti and 
COO Thad Seymour on the board of directors. Mr. Toleti said the board is 
expected to add outside directors, growing to seven board members in the next 
three months. New money will be used for expanding into new markets such as 
financial services and manufacturing. Staff size is expected to nearly double 
as the company grows from 55 to approximately 90 employees. Cytura expects 
between $10 million and $15 million in revenues over the next twelve months, 
with break-even occuring at the end of 2001. This first round will carry the 
company to profitability, said Mr. Toleti. The company was founded in 1998.
		http://www.cytura.com
		
		
		Grass Valley Grabs $36 Million In First Outside Round
		 mail? top
		
		 NEVADA CITY, Calif. (VENTUREWIRE) -- Grass Valley Group, a digital media 
company, said it raised a $36 million round led by a Lazard private equity 
affiliate, its first outside round since it spun out of Tektronix two and a 
half years ago. Terence J. Gooding, executive chairman of Grass Valley Group, 
also participated along with other, undisclosed investors.  According to 
president and CEO Timothy E. Thorsteinson, the company will use the funding 
to strengthen its research and development and to make strategic 
acquisitions. "We're looking for companies that will help us grow the 
business long term, adjacent to the space," said Mr. Thorsteinson. "Software 
applications that would run on our server business." The company, which 
acquired Vibrint Technologies, a developer of digital newsroom systems, in 
March of 2000, has released eight new products in the last six months 
including a shared-storage system, Internet encoder, a platform for digital 
new production, routers, and a video production switcher. According to Mr. 
Thorsteinson, "Anybody that wants to improve quality of their video," 
including streaming media and Internet companies, can benefit from Grass 
Valley's products and services. Current clients include Viacom, Lucent 
Technologies, CBS, DirecTV, Ibeam, and NBC, which recently entered into a $25 
million 3 year agreement with Grass Valley. "While the industry is going 
through a bit of a slowdown right now, double digit growth is predicted over 
the next three to five years," said Paul J. Zepf, Lazard's managing director, 
who has taken the seventh seat on Grass Valley's board of directors. "Grass 
Valley has most if not all of the elements we look for in a company. Mr. 
Thorsteinson said the company, which saw $200 million in revenues last year, 
plans to become profitable next quarter, and, depending on external market 
conditions, could seek an IPO within the next few years. 
		http://www.grassvalleygroup.com
		
		
		Electronics Design Tool Firm Atrenta Gets $6.7M Series A
		 mail? top
		
		 SAN JOSE, Calif. (VENTUREWIRE) -- Atrenta, a provider of collaborative 
software tools for the design of complex electronic products, said that it 
received $6.7 million in the first close of its Series A financing from 
Venrock Associates, Qinvest, and Qwest. New investor Venrock led the round, 
in which Qinvest and Qwest provided a combined $1.2 million. Atrenta said it 
plans to use the new funds for marketing and sales, as well as for the 
expansion of its staff, particularly in engineering. The company, which is 
currently in revenue stage, expects the funds to last until profitability, 
which it expects to reach by the second quarter of 2002. As a result of this 
financing, Brian Ascher of Venrock Associates and Michael Hackworth of Cirrus 
Logic have been granted seats on the company's five-member board of 
directors, which still has two seats vacant. Prior to this round, the company 
was backed by individuals. With an eye to strategic funds, Atrenta is looking 
to close this round at $8 million within the next month.
		http://www.atrenta.com
		
		
		Flat Panel Co. ClairVoyante Labs Gets $4 M in Series A Funds
		 mail? top
		
		 SEBASTOPOL, Calif. (VENTUREWIRE) -- ClairVoyante Laboratories, a provider of 
sub-pixel rendering technology for flat-panel displays, said it received $4 
million in Series A funding from The Angels' Forum, Lakshmi Technologies, 
North Bay Angels, Pacifica Fund, Selby Venture Partners, and unnamed 
individuals. Selby Venture Partners, a new investor, led the round. According 
to ClairVoyante's CEO and CTO Candice H. Brown Elliott, the company has a 
post-money valuation of $8.5 million and a burn rate that is "ramping up." 
Expected to last the company about 18 months, the funds will be used for 
research and development as well as for staff expansion. As a result of the 
financing, there were three new appointments to ClairVoyante's five-member 
board of directors: Douglas Barry, a general partner with Selby Venture 
Partners; Tim Oren, a general partner with Pacifica Fund; and private 
investor Scott Macomber, who was most recently president of fabless IC 
company Silicon Image. ClairVoyante, which currently has a team of six, said 
it is actively hiring engineers and business development executives. Ms. 
Elliot anticipates the headcount to reach 19 by the year's end, and 35 by the 
close of 2002. She told VentureWire that company will be looking for Series B 
financing of between $10 million and $20 million, to close by the first 
quarter 2002. 
		http://www.clairvoyante.com
		
		
		Financial Tech Firm Mantas Closes First Round  
		mail? top
		
		 FAIRFAX, Va. (VENTUREWIRE) -- Mantas, a software provider for the global 
financial services industry, announced closing its first round with an 
undisclosed amount of funding from SRA International and Safeguard 
Scientifics. Mantas is the first spin-off company from SRA Ventures, a joint 
venture formed by SRA International and Safeguard Scientifics to take 
advantage of SRA's technology. Richard Spires, formerly an executive at SRA 
International, is the president and COO of Mantas. 
		http://www.sra.com
		
		
		Lucent Takes Equity in Traffic Info Firm MetroCommute.com
		 mail? top
		
		 NEW YORK (VENTUREWIRE) -- MetroCommute.com, a provider of real-time traffic 
information, said that it has granted Lucent Technologies an equity stake in 
exchange for technology and an undiclosed amount of capital. As part of this 
agreement, MetroCommute.com has acquired the worldwide rights to license 
Lucent's automatic speech recognition and text-to-speech PhoneBrowser 
technology. MetroCommute.com currently publishes data on its Web site and 
through e-mail updates to wireless devices. The new services, which will 
enable users to gain access to traffic information via mobile phones, are set 
to launch within the next 90 days. As a result of this transaction, David 
Stahl, a director of the Lucent New Venture Group, has been granted the sixth 
seat on the board. Prior to this investment, MetroCommute.com has been backed 
by individuals. The company is currently seeking an undisclosed amount of 
first round financing, set to close by September.
		http://www.metrocommute.com
		
		
		Delphi Display Systems Gets $3 M Series A from Eaglestone 
		mail? top
		
		 COSTA MESA, Calif. (VENTUREWIRE) -- Delphi Display Systems, which designs 
and manufactures outdoor digital video display systems for the quick service 
restaurant industry, said that it received $3 million in Series A financing 
from Eaglestone Investment Partners. The company, which is currently 
profitable, plans to use the new funds for product development and general 
expansion. As a result of this financing, Eaglestone Investment Partners has 
been granted a seat on the company's five-seat board of directors. President 
and CEO Ken Neeld told VentureWire that he did not anticipate any additional 
financing "at least for the next couple of years." Delphi Display's 
applications include drive-through order confirmation, digital 
point-of-purchase advertising, electronic billboards, and outdoor information 
kiosks. Prior to this round the company was backed by unnamed individuals. 
		http://www.delphidisplaysystems.com
		
		
		Fabless Semiconductor Firm Banderacom Gets $35M Round Two
		 mail? top
		
		 AUSTIN, Texas (VENTUREWIRE) -- Banderacom, which provides fabless InfiniBand 
semiconductors, announced it has closed $35 million in a second round of 
funding from Austin Ventures, Crossroads Systems, Infinity Venture Capital, 
Intel, Jato Tech Ventures, QLogic, and Trinity Venture Capital. New investors 
included Infinity Venture Capital, which led the round, QLogic, and Trinity 
Venture Capital. All of Banderacom's existing investors participated in the 
round. Although a company spokesperson did not disclose post-money valuation, 
she said it was "significantly larger" than that of the previous round. 
QLogic will take the sixth seat on Banderacom's board of directors. Funds 
will be used for developing the IBandit silicon products family, which is 
expected to launch in the third quarter. Second-round funding is expected to 
last at least 18 months, at which time Banderacom expects to raise a third 
round of roughly the same size. Although the company did not share revenue 
projections, a spokesperson said Banderacom will break even in 18 to 24 
months. Banderacom, which was founded in 1999, employs 70 and expects to add 
about 50 more by the end of the year. New positions will be primarily in 
software engineering.
		http://www.banderacom.com
		
		
		Optical Device Maker Optium Raises $35.5 Million Round Two
		 mail? top
		
		 ORLANDO, Fla. (VENTUREWIRE) -- Optium, which has developed proprietary 
optical device and packaging technology to enhance high-speed voice and data 
transmissions, announced it has raised $35.5 million in its second round of 
funding from Battery Ventures, Corning Innovation Ventures, Dominion 
Ventures, Texas Pacific, Kalkhoven, Pettit & Levin Ventures, and Kee Munder 
Venture Partners. Kalkhoven, Pettit & Levin Ventures led the round, which 
brings the total capital raised by Optium to date to $50 million. Texas 
Pacific, Kee Munder Venture Partners, and Dominion Ventures were new 
investors in the company. Founded in November 2000, Optium is headed by 
co-chairman and CEO Paul Suchoski and Eitan Gertel, co-chairman and 
president. Optium's optical technology was developed at the University of 
Central Florida's School for Optics. The company has 40 employees and is 
planning an aggressive hiring and marketing campaign. 
		http://www.optium.com
		
		
		OSS Software Maker AP Engines Closes $30 Million Round Two
		 mail? top
		
		 MAYNARD, Mass. (VENTUREWIRE) -- AP Engines, which provides operational 
support systems (OSS) integration platforms for telephony and broadband 
provisioning and usage management, said it has closed $30 million in a second 
round of funding. Atlas Ventures, Bessemer Venture Partners, Commonwealth 
Capital Venture, Enron Broadband Services, Lighthouse Capital Partners, 
Mentmore Venture Partners, and Thomas Weisel Capital Partners participated in 
the round. New investor Thomas Weisel led the round; Enron, Lighthouse, and 
Mentmore were also new investors in the company. The round also included $5 
million in debt financing from Lighthouse. Company spokesperson Gary P. 
Strickland declined to disclose post-money valuation, but indicated that it 
was nearly double that of the previous round. As a result of the round, 
Thomas Weisel takes a seat on AP Engines' board, bringing the total number of 
directors to six. Funds will be used for research, development, and 
distribution. This year's revenues are expected to exceed $10 million, with 
the company breaking even in the first half of 2002.
		http://www.apengines.com
		
		
		Software Maker Harmonic Closes Series B at $15.2M
		 mail? top
		
		 SAN FRANCISCO, Calif. (VENTUREWIRE) -- Harmonic Communications, which 
provides enterprise management software for campaign development across 
traditional and digital media, announced it has closed $15.2 million in 
Series B financing. Investors included Dentsu and Sequoia Capital. New 
investor Dentsu led the round with $11.5 million in investments, while 
Sequoia, the only existing investor, made up the balance. Valuation has 
increased since the previous $10.8 million round, though president Gina 
Bianchini declined to give details. Dentsu gains an observer seat on the 
board, which consists of five directors. Funds will be used for technology 
development and building out a Japanese market. Though she declined to share 
projections for revenues or profitability, Ms. Bianchini said she did not 
expect the company to raise another round of financing. 
		http://www.harmonic.net
		
		
		Wireless Provider Bluefish Gets $1.8 in Second Round Funds
		 mail? top
		
		 SAN FRANCISCO (VENTUREWIRE) -- Bluefish Wireless, which develops a wireless 
platform for two-way infrared communication between Palm-based handheld 
devices and the Internet, said that it received $1.8 in second round funding 
from Allen & Buckeridge and NetworkAsia. The round was led by NetworkAsia, a 
new investor. According to CEO James Fisher the company plans to dedicate the 
new financing to product, technology, and business development. This was an 
up round, with post-money valuation of $7.5 million. Citing a monthly burn 
rate of $180,000, Mr. Fisher expect the new funds to last through the next 
year. With revenues anticipated by the end of this year, the company is 
looking to achieve profitability by the third quarter of 2002. As a result of 
this finanancing, Jason Cornell of NetworkAsia has been appointed to 
Bluefish's five-member board of directors, which includes David Landers of 
Allen & Buckeridge. In November 2000 the company raised $750,000 in Series A 
financing from Allen & Buckeridge and unnamed individuals. Bluefish is 
currently seeking Series C funds of around $10 million, set to close by the 
first quarter 2002.
		http://www.bluefishusa.com
		
		
		Information Software Firm Casmir Raises $1.6M Second Round
		 mail? top
		
		 SALFORD, England (VENTUREWIRE) -- Casmir, which develops knowledge 
management software, said it closed its second round at GBP 1.1 million ($1.6 
million) from Axiomlab, Yorkshire Fund Managers, the University of Salford 
Enterprises, and individuals. Previous investor Axiomlab led the round and 
all the other participating investors were existing backers. Casimir said the 
funding would be used for the marketing of its recently released first 
product, Socialiser, which is a collaborative information retrieval software. 
		http://www.casmir.net
		
		
		NxtPhase Raises $25 Million in Round Three
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		 VANCOUVER, Canada (VENTUREWIRE) -- NxtPhase, which develops digital and 
fiber software and hardware for the electric power industry, said it has 
closed $25 million private equity financing in a third round. Canadian 
Science and Technology Growth Fund, GE Equity, GrowthWorks Capital, 
Hydro-Quebec Capitech, Mitsubishi, Reliant Energy Ventures, Perseus 2000, 
Western Technology Seed Investment Fund LImited Partnership, and Wexford 
participated in the round. New investor GE Equity led the round, which 
included other new investors Mitsubishi, Perseus 2000, Reliant Energy 
Ventures, and Wexford Capital. All existing investors participated as well. 
BIBC World Markets served as financial advisors. Post-money, the company's 
valuation was higher than after the last round. Hans Kobler, vice president 
of GE Equity, joins the board of directors, as does managing director of 
Perseus 2000 John C. Fox. The board includes seven members, including one 
seat reserved for an outside director. Funds will last for a couple of years, 
said NxtPhase CEO Richard MacKellar, but the company expects to seek more 
financing in the future. In addition to product development and working 
capital, the new money will also help complete a manufacturing facility that 
will integrate, test, and ship products. The company expects the facility to 
be finished in the third quarter. NxtPhase, which employs 75 currently, will 
add at least 25 more by the end of the year. To date the company has raised 
$32.3 million. NxtPhase was formed in 1998 through a merger of Carmanah 
Engineering and part of Honeywell's space and aviation group.
		http://www.nxtphase.com
		
		
		SafeRent Collects $13.4 Million in Round Three
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		 DENVER, Co. (VENTUREWIRE) -- SafeRent, a provider of online credit and risk 
management services to the apartment industry, said it has closed $13.4 
million in third round funding. Archstone Communities, AvalonBay Communities, 
Boulder Ventures, Cohen & Steers Capital Management, Hexagon Investments, 
Inter-Atlantic Fund, Internet Realty partners, Mellon Ventures, Potomac 
Ventures, and Roser Ventures provided the funding. Existing investor Mellon 
Ventures led the round, which included new investors AvalonBay Communities, 
Cohen & Steers Capital Management, Inter-Atlantic Fund, and Internet Realty 
Partners. The remaining participants are existing investors. SafeRent's CEO 
Linda Bush said post-money valuation declined since the last round. No board 
appointments resulted from this round. SafeRent said the new money will be 
used for sales and marketing and for launching new products. The company 
expects to launch services for affordable housing, criminal recommendations, 
portfolio analysis, and small owners. The company will add approximately 
twelve new positions to its 75-employee staff, half for sales and marketing 
and half for software development. SafeRent expects revenues for 2001 to 
total between $10 million and $11 million, with the company breaking even in 
the first quarter next year. The company will "more likely" be a candidate 
for acquisition than for an IPO, said Ms. Bush. The company has raised more 
than $21 million in equity  financing to date.
		http://www.saferent.com
		
		
		HydroCision Gets $2M from Oxford Bioscience, Closes Series E
		 mail? top
		
		 ANDOVER, Mass. (VENTUREWIRE) -- HydroCision, a provider of waterjet 
technology for arthroscopic surgical procedures, said that it closed its 
series E round with an additional $2 million in financing from Oxford 
Bioscience Partners. This investment brings the company's Series E round, 
which had its initial close in April, to $7.5 million. New investor Oxford 
Bioscience Partners led this round, with participation from previous 
investors Newbury Ventures and Zero Stage Capital. The company plans to 
dedicate the new funds to sales and marketing, as well as for the developent 
of products geared toward surgical fields related to urology, dermatology, 
and gynecology. According to HydroCision's president and CEO Donald C. 
Freeman Jr., this was an up round, with a post-money valuation of $19 
million. Declining to reveal the company's burn rate, Mr. Freeman said he 
expects the funds to last "at least a year" and eyes profitability by 
mid-year 2002. As a result of this financing, there were no new appointments 
to the company's five-member board of directors, which includes Jeff Barnes 
of Oxford Bioscience Partners, Bruce Baur of Newbury Ventures, and Paul 
Kelley of Zero Stage Capital. The company has raised $10.7 million to date. 
		http://www.hydrocision.com
		
		
		PC Management Tech Firm Connected Raises $30M Series F
		 mail? top
		
		 NATICK, Mass. (VENTUREWIRE) -- Connected, which provides corporations with 
software and services to manage and protect their desktops and mobile PCs as 
well as stored information assets, said it has secured $30 million in its 
Series F round of funding led by previous investor, Baker Capital and 
Fidelity Ventures. Five new investors -- Peregine Systems, StarVest Partners, 
New York Life Capital Partners, Ironside Ventures and Deutsche Banc Alex. 
Brown -- also participated in this round along with existing investors, 
Granite Ventures, Applied Technology and Solstice Capital. CEO Bob Brennan 
said the company went through a difficult fundraising process, which lasted 
seven months and with more than 60 meetings. He declined to discuss the 
details of the valuation, saying it was in the $50 million to $100 million 
range, and essentially a flat round compared to the previous round. Connected 
plans to use the funding to accelerate the development and marketing of its 
latest software, which is slated to launch at the end of the month. The 
company, which has a total of 150 employees, also intends to expand its staff 
in Europe. Mr. Brennan said Connected has no plans to raise an additional 
funding because the company has sufficient capital to fund all operations 
until it reaches profitability in the first half of 2002. Presently, 
Connected has about 310 Global 2000 customers, including Hewlett Packard 
North America, Lucent Technologies, PeopleSoft, and Cisco Systems. Connected 
has made $25 million in annualized revenues and expects revenues to continue 
doubling each year as it has done for the past three years, Mr. Brennan said. 
Connected's products and services are geared toward reducing computer 
downtime by improving backup and recovery of data, migration, and application 
self-healing. Connected said that Intel, a previous investor, was "not 
encouraged" to invest in this round, and following a mutual agreement, also 
declined investments from Softbank, another previous investor.
		http://www.connected.com
		
		
		Qpass Clears $15 Million in Series F 
		mail? top
		
		 SEATTLE (VENTUREWIRE) -- Qpass, a provider of commerce services 
infrastructure, said it raised $15 million in its Series F round from 
Accenture Technology Ventures, American Express, Hook Partners, J&W Seligman 
& Company, Oak Investment Partners, Partech International, RRE Ventures, 
SeaPoint Ventures, Venrock Associates, and individuals. All the investors in 
this round were previous investors. The company said the funding would be 
used for continuing product development and for client services 
infrastructure. To date, Qpass has raised $85 million. 
		http://www.qpass.com
		
		
		Web-Based Planning Software Adaytum Gets $7.4 M Series F
		 mail? top
		
		 MINNEAPOLIS (VENTUREWIRE) -- Adaytum, which provides Internet-based 
enterprise planning software that allows organizations to plan, track, 
analyze, and forecast business activities, announced it has raised $7.4 
million in its Series F round from 3i Group, Accenture, American Express, 
J.P. Morgan/H&Q, and St. Paul Venture Capital. Previous investor St. Paul 
Venture Capital led the round, in which all the participating investors were 
existing Adaytum backers. Compared to the previous round, the Series F was a 
flat round, said CEO Guy Haddleton. He added that the company now had 
sufficient funding to sustain the business until it gets to profitability 
sometime before the end of the year. The company plans to use the round to 
continue its worldwide growth in sales, marketing, branding, consulting, and 
product development. The company, which has a total of 322 employees, plans 
to add 30 more people to its staff by the end of the year, said Mr. 
Haddleton. Adaytum expects to make between $55 million to $60 million in 
revenues this year. The company, which has raised over $30 million to date, 
has filed for an initial public offering. Mr. Haddleton said that, in spite 
of the poor performance of the stock market, he has no plans to pull the S-1 
registration filed last June. J.P. Morgan H&Q serves as the lead underwriter, 
along with Piper Jaffray and FAC Equity. Adaytum is proposing an offering 
price between $9 and $11, and expects to raise $50 million to $60 million in 
the offering. Adaytum has offices in the U.K., The Netherlands, and 
Australia, and has 22 distributors worldwide. 
		http://www.adaytum.com
		
		
		Naviant, Online Marketing Technology Firm, Gets $15 Million
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		 NEWTON SQUARE, Pa. (VENTUREWIRE) -- Naviant, the parent company of Naviant 
Marketing Solutions, a provider of marketing tools for customer relationship 
management, raised $15 million from Softbank Capital Partners and TL 
Ventures. Softbank, which had invested $25 million in Naviant in March 2000, 
led the round with a $14 million investment. TL Ventures contributed $1 
million to the round. Both Steve Murray, of Softbank, and Robert E. Keith 
Jr., of TL Ventures, will take seats on the Naviant board of directors. 
		http://www.naviant.com
		
		
		 bad news 
		?
		Report: MetaTV Co-Founder, CEO is Arrested 
		mail? top
		
		 NEW YORK (VENTUREWIRE) -- Ranjit Singh Sahota, CEO and co-founder of 
interactive television technology provider, MetaTV, was arrested for 
allegedly raping a 12-year-old girl he met on the Internet, according to a 
report in today's Wall Street Journal. According to the Journal, Andrew Lev, 
MetaTV co-founder and president, will continue to run the company. Mr. Singh 
Sahota was arrested in San Francisco's Golden Gate Park after approaching an 
FBI agent who had been posing as a 14-year-old girl with whom Mr. Singh 
Sahota had conducted sexually explicit online chats, the report said. 
According to the report, Mr. Sahota is accused of meeting the 12-year-old 
girl in Internet chat rooms last year. Authorities say he arranged to meet 
her in a park and lured her to a hotel room where he allegedly raped her. 
MetaTV, which is based in Sausalito, Calif., raised $28 million in April of 
2001 from investors including Comcast Interactive Capital, Cox 
Communications, Atrium Venture Partners, Crown Technology Partners, Harron 
Capital, Liberate Technologies, Redpoint Ventures, Rosewood Venture Group, 
and Saints Ventures.
		http://www.metatv.com
		
		
		AtomShockwave President Steps Down, Firm Closes Offices
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		 SAN FRANCISCO (VENTUREWIRE) -- AtomShockwave, an online entertainment and 
content distribution company, said its president Matt Hulett is stepping 
down. The company also disclosed some details of its recent staff cuts and 
said that it is closing its New York and Los Angeles offices and phasing out 
its London office. A company spokersperson would not confirm published 
reports that 120 people were laid off last week, but did say that 50 
employees remain at the company. At its peak, AtomShockwave employed 180 
people. The company had no comment on severance packages. AtomShockwave said 
it will continue to operate its offices in Japan and San Francisco. 
AtomShockwave's backers include Allen & Co., Arts Alliance, Chase Capital 
Partners, Intel Capital, J.P. Morgan Entertainment Partners, Macromedia 
Ventures, Sequoia Capital, Trans Cosmos USA, Warner Bros. Online, WaterView 
Advisors, and individuals. 
		http://www.atomshockwave.com
		
		
		Site Monitoring Firm webHancer Cuts 10% of Staff
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		 OTTAWA (VENTUREWIRE) -- WebHancer, an Ottawa-based company that monitors and 
analyses Web site performance, has cut eleven employees from its staff, 
according to its CEO Bruce Linton. The layoffs resulted in early May from the 
company's decision to cut its scalability testing operations, which Mr. 
Linton said was "not a core business area." Those operations had proved an 
obstacle to potential partnerships with companies such as Mercury or RSW that 
have strong and competing scalability testing offerings, he said. Mr. Linton 
said he does not expect the company to be profitable before the second 
quarter of 2002. The company's sales cycle has been extended as potential 
customers have become "incredibly cautious." WebHancer generates revenues 
through monthly subscriptions and is focused on signing customers among the 
top 100 to 200 most highly trafficked Web sites. Mr. Linton did not disclose 
the company's burn rate, but said that the firm's major costs come from 
employee salaries. About 75% of the company's 86 employees are technical 
staff, he said. The company, which last raised funds in June 2000 with a $13 
million round, will not begin new fundraising until at least September. Mr. 
Linton also declined to comment on the company's current valuation. Venture 
Investment Management Co., Jefferson Partners, Skypoint Capital, McLean 
Watson Capital, and Capital Alliance are investors in webHancer, as is 
strategic partner Entrust Technologies. webHancer had also received funding 
from PSINet Ventures as part of a partnership agreement to develop technology 
for e-business programs with PSINet, which filed for bankruptcy last week. 
Mr. Linton said the company had "learned a lot from executive discussions" 
with PSINet but that the PSINet agreement was "not part of our go-to-market 
plan." Despite the layoffs, webHancer is still hiring. Two new employees, in 
business partnerships and sales, joined the company this week, and spots are 
open in operations and R&D, Mr. Linton said. 
		http://www.webhancer.com
		
		
		Bitlocker.com to End Web Database Infrastructure Service
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		 PALO ALTO, Calif. (VENTUREWIRE) -- Bitlocker.com, a provider of Web database 
infrastructure to high volume Web sites, will end its service as of June 15, 
according to the company Web site. CEO Rich Shane declined to comment on the 
company's financial situation, but indicated that Bitlocker.com may make a 
formal announcement by the end of June. Bitlocker.com has raised $10 million 
from Angel Investors, Labrador Ventures, Redleaf Group, two law firms, an 
accounting firm, and individuals including Four11 and RocketMail co-founder 
Michael Santullo. 
		http://www.bitlocker.com
		
		
		 new products 
		?
		Telco Soma Networks to Launch with $70 M Raised to Date
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		 SAN FRANCISCO (VENTUREWIRE) -- Soma Networks, a "last mile" 
telecommunications infrastructure company which is launching later this year, 
said it has raised $70 million to date over multiple rounds of funding from 
individuals including former N.J. Senator Bill Bradley; Jim Manzi, former CEO 
of Lotus Development; Compaq Computer's co-founder Ben Rosen, and other 
undisclosed investors. CFO Scott Gibson said Soma plans to launch its first 
product, SomaPort, after it completes its customer trials later this year. 
Soma is developing telecommunication infrastructure to provide converged 
voice and broadband data services for the "last mile." The technology enables 
local exchange carriers, competitive local exchange carriers, wireless 
telephone companies, and other service providers to provide complex telephony 
and data services to residential customers and small offices. Soma says it 
has the only IP wireless system able  to handle a mix of real services 
including voice and videoconferencing, without the lead time and expense 
associated with negotiating rights of way, digging trenches, or laying copper 
or cable. The company said consumer spending for telephony, broadband 
Internet access, and related residential services will be $105 billion by 
2002 and more than 70% of that spending can be captured by Soma Networks' 
target service provider customers. Yatish Pathak, president and CEO; Martin 
Snelgrove, senior vice president of product strategy; and Michael Stumm, 
chief technology officer founded the company in January 1998. With 230 
employees, Soma also has offices in Ottawa, Toronto, and Richardson, Texas. 
		http://www.somanetworks.com
		
		
		Hardware Manufacturing Software Firm Bom.com Launches
		 mail? top
		
		 MOUNTAIN VIEW, Calif. (VENTUREWIRE) -- Bom.com, which provides a Web-based 
software application for hardware design and manufacturing organizations with 
a centralized workspace for storing, managing, accessing, and sharing all 
data, announced it has launched its first product. The product, which is also 
called bom.com, employs a relational database to manage whole-product bills 
of materials and information, allowing companies to reuse design data and 
reduce development costs and speed up time to market. Bom.com charges $100 a 
month per user. The company was founded by CEO Michael Topolovac, previously 
founder and CEO of Light & Motion Industries; CTO Eric Larkin, a former 
consultant with design and development firm D2M; and COO Michael DeLapa, who 
was previously interim COO and vice president of Web site publishing at 
Beyond.com. Bom.com is backed by John Pasquesi, former managing director of 
Helman and Friedman; Jeffrey Rodman, co-founder of Polycom; Jerome Dodson, 
president of Parnassus Fund; Brian Underwood, founder of Silicon Image; and 
other individuals. 
		http://www.bom.com
		
		
		ForwardAction Launches to Help Sacramento Area Startups
		 mail? top
		
		 ROSEVILLE, Calif. (VENTUREWIRE) -- ForwardAction, a consulting firm focused 
on assisting seed and early stage companies in the Sacramento area, announced 
its launch. ForwardAction, which will receive both fees and equity for its 
services, said it already began assisting eight startups in the first quarter 
of 2001. The company focuses on startup companies in the high-tech and 
consumer packaged goods sectors that have a completed product and are seeking 
multimillion-dollar funding to formally launch their companies. A 
spokesperson for ForwardAction said the firm is working with a number of 
undisclosed venture capital firms. ForwardAction's current high-tech startup 
clients include Emaginews, iConvention, and StratoLink. The company said it  
is in the process of formally launching its incubator, Launch! Idea 
Accelerator. 
		http://www.forwardaction.com
		
		
		Biotech Firm Mycometrix Changes Name to Fluidigm
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		 SAN FRANCISCO (VENTUREWIRE) -- Mycometrix , a developer of on-chip, 
microscale valves and pumps that control femtoliters of fluid for the 
biotechnology industry, announced that the company has changed its name to 
Fluidigm. The company, whose micro-pump and valve technology is used to 
create miniature fluidic circuits, currently targets drug discovery arena. 
Future applications for its products include the drug delivery, diagnostics, 
chemical, and power markets. Fluidigm is backed by InterWest Partners. 
		http://www.fluidigm.com
		
		
		Software Infastructure Firm Gazoo Changes Name to Talaris
		 mail? top
		
		 SAN FRANCISCO (VENTUREWIRE) -- Gazoo, a software infrastructure company that 
develops and markets a platform and application for buyers and suppliers of 
business and personal services, announced it has changed its name to Talaris. 
Currently in stealth mode, Talaris plans to launch in early summer. The 
company is funded by Jafco Ventures, Charter Venture Capital, and individual 
investors. 
		http://www.talaris.com
		
		
		GDX Changes Name of Six Affiliates 
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		 LINCOLNSHIRE, Ill. (VENTUREWIRE) -- Global DocuGraphix (GDX), a document 
management and graphics services firm, said six of its affiliate companies 
have changed their names to Global DocuGraphix, for Everything Business. GDX 
cited an increased awareness for brand recognition as the reason for the 
change. The companies that have changed their names are: Associated Business 
Products of Santa Rosa, Calif.; Bank and Business Systems of Baton Rouge, 
La.; BNB Systems of Little Rock, Ark.; Data Pro of Huntsville, Ala.; Inform 
of Nashville, Tenn.; and Structured Graphics of Houston, Texas. Three GDX 
affiliate companies have not changed their name. They are Document Imaging of 
Greenwood Village, Colo.; Scanning Systems of Eden Prairie, Minn.; and 
TopForm Software of Norcross, Ga. Global DocuGraphix is backed by Thoma 
Cressey Equity Partners. 
		http://www.gdx.cc
		
		
		 m&a 
		?
		Schroder Ventures Acquires Market Place Media For $28M Cash
		 mail? top
		
		 NEW YORK (VENTUREWIRE) -- The Schroder Ventures US Fund, a private equity 
fund focused on media, communications, technology, and services, said it 
signed a definitive agreement to acquire Armed Forces Communications, known 
as Market Place Media (MPM), from publicly traded CTN Media Group for $28 
million in cash. MPM provides advertisers with media placement and promotions 
services targeted at speciality markets including minority, college, and 
military markets. Andy Sawyer, senior vice president and CFO of MPM, will 
become president of the newly independent MPM when the deal closes. All 90 
employees will remain with MPM. The company brought in $48 million in 
revenues in 2000. Schroder Ventures comprises 24 funds with committed capital 
of more than $7 billion. The firm formed Schroder Ventures U.S. Fund in 1999. 
		http://www.schroders.com
		
		
		Progress Software Acquires Allegrix 
		mail? top
		
		 BEDFORD, Mass. (VENTUREWIRE) -- The Progress Company, a business unit of 
publicly traded Progress Software, said it acquired Allegrix, an application 
service provider based in Santa Clara, Calif. Financial details of the 
transaction were not disclosed. Allegrix will operate as a business unit of 
Progress Software and remain in Santa Clara, Calif. Co-founders CEO Chris 
Clabaugh and COO Scott Chapman will continue with the combined company and no 
changes are expected to Allegrix's staff. In total, Allegrix had raised $5.6 
million in seed and first round funding from Signia Ventures, the Santa Cruz 
Operation, Western Investment Capital, and individuals. 
		http://www.allegrix.com
		
		
		Mobile App Firm Everypath Buys Sitraka's Mobility Division
		 mail? top
		
		 SAN JOSE, Calif. (VENTUREWIRE) -- Everypath, a mobile application platform 
provider, announced it has acquired the mobility division of Sitraka, a 
provider of Internet software technologies for IT organizations, in a cash 
and stock transaction of undisclosed value. Matt DiMaria, the company's vice 
president of marketing, said Everypath will integrate Sitraka's mobile alert 
and response platform with its own. Mr. DiMaria said Everypath will retain 
over two dozen employees from Sitraka, who will remain in their Toronto 
office. Everypath has raised about $98 million in funding to date from 
Accenture's AC Ventures, Amerindo Investments, Asia Tech Management, 
Comdisco, Dain Rauscher Wessels, Deutsche Bank Alex. Brown, E*Trade, 
Liberate, Raza Ventures, Redwood Ventures, Robertson Stephens, Sevin Rosen 
Funds, Sun Microsystems, Texas Pacific Group, U.S. Venture Partners, 
Wasserstein Adelson Ventures, and WR Hambrecht. 
		http://www.everypath.com
		
		
		 new directors 
		?
		NETdelivery Appoints CDP Sofinov Exec. as New Director
		 mail? top
		
		 BOULDER, Colo. (VENTUREWIRE) -- NETdelivery, a provider of digital 
technology for online data management, announced that Fabrice Lucherini, an 
investment manager for CDP Sofinov, a subsidiary of the Caisse de depot et 
placement du Quebec, has joined its board of directors. Mr. Lucherini joins 
as the seventh member of the company's board of directors, which includes 
George Middlemas, managing general partner of Apex Investment Partners; John 
Regan, general partner of Keystone Venture Capital; and John R. Walter, the 
former CEO and COO of AT&T. This is a new seat on the board. NETdelivery is 
backed by Apex Investment Partners, Keystone Venture Capital Management, 
Output Technlogogy Solutions, and United Parcel Service. 
		http://www.netdelivery.com
		
		
		Wall Street Global Appoints CML Executive to Board
		 mail? top
		
		 NEW YORK (VENTUREWIRE) -- Wall Street Global, a provider of Internet-based 
mutual funds and annuities platforms for mid-size financial institutions, 
announced that Charles M. Leighton, most recently the founder and chairman of 
retailer CML Industries, has joined its board of directors. Mr. Leighton 
joins as the fifth member of the company's board, which currently does not 
represent any venture investors. To date, Wall Street Global has raised about 
$2 million from the Wall Street Financial Group and unnamed individuals. The 
company, which expects to reach profitability within the year, is in the 
process of raising an undisclosed amount of first round financing.
		http://wallstreetglobal.com
		
		
		 new people 
		?
		Iris Labs CEO Joins Metera Networks as CEO
		 mail? top
		
		 RICHARDSON, Texas (VENTUREWIRE) -- Metera Networks, which develops optical 
service aggregation and management products for metro-area carrier networks, 
said H. Michael Zadikian has joined the company as CEO and president. He had 
served as president and CEO of Iris Labs, a member of the Iris Group startup 
alliance and provider of network management software. Mr. Zadikian, who also 
gains a seat on the Metera board,  replaces Zareh Baghdasarian, a Metera 
co-founder and former CEO. Mr. Baghdasarian left the company to join Coree 
Networks as chief operating officer and executive vice president of 
engineering. Coree Networks, an Iris Group startup company, develops core 
packet switching systems. The Iris Group alliance consists of Coree Networks, 
Iris Labs, Latus Lightworks, and Metera Networks. Metera Networks is backed 
by $24 million from Mayfield Fund, Sevin Rosen Funds, Lightspeed Venture 
Partners, and Hook Partners.
		http://www.metera.com
		
		
		MobileStar Appoints WorldCom Head as President & CEO
		 mail? top
		
		 RICHARDSON, Texas (VENTUREWIRE) -- MobileStar Network, a provider of 
broadband wireless Internet access, announced the appointment of Robert A. 
Kaiser as its new president and CEO. Prior to joining MobileStar, Mr. Kaiser 
served as CEO of WorldCom broadband solutions group. Mr. Kaiser replaces 
former president and CEO Mark Goode, who left the company in early March to 
pursue personal interests. In the interim, a "president's office" comprising 
Ali Tabassi, the company's chief technology and development officer, George 
Sutton, chief operating officer, and chief financial officer Kevin McAleer, 
maintained the company's day-to-day operations. Prior to joining WorldCom, 
Mr. Kaiser served as CEO and CFO of SkyTel, where he was responsible for 
SkyTel's financial restructuring which led to WorldCom's acquisition of the 
company. MobileStar is backed by Blueprint Ventures, Mayfield Fund, Norwest 
Venture Partners, Sienna Ventures and Texas Pacific Group. 
		http://www.mobilestar.com
		
		
		World Wide Packets Adds Architel Systems Co-founder as Pres.
		 mail? top
		
		 SPOKANE, Wash. (VENTUREWIRE) -- World Wide Packets, which provides hardware 
and software for optical broadband connectivity, said it appointed David 
Curry president and chief operating officer. Mr. Curry is a board member and 
an investor in the company, and previously co-founded Architel Systems, a 
telecom and OSS product and services provider in Canada. World Wide Packets 
is backed by Azure Capital Partners, Corning Innovation Ventures, Koch 
Ventures Group, Millennium Technology Ventures, and Rock Creek Capital.
		http://www.worldwidepackets.com
		
		
		 vc fund news 
		?
		Leader Capital's Next Joint Venture: Solvos Asia
		 mail? top
		
		 NEW YORK (VENTUREWIRE) -- Leader Capital Management, the New York-based 
corporate venture capital unit of Korean conglomerate SK Global, will launch 
another joint venture, Solvos Asia, within the next two weeks, according to 
Sabrina H. Moon, vice president of venture capital for SK Global America. The 
new joint venture is part of Leader's ongoing strategy to launch Asian 
startups in partnership with its existing U.S.-based portfolio companies. 
Solvos, a New York-based provider of vendor selection automation software, 
will help form Solvos Asia with Leader Capital Management. Typically, a 
Leader startup will hold 30% of the equity in its Asian counterpart, with SK 
Global leading a group of Asian investors to hold 70% equity. These Asian 
investors include V Society, a group of individual investors. "We'll fund an 
idea in this country and if there is a value proposition for the Asian market 
we bring that company into the Asian market," said Ms. Moon. She added that 
being a unit of SK Global, one of the largest conglomerates in Korea, gives 
Leader access to deals.  "Our position in this market is the gateway to the 
Asian market," she said.  "We are the dealmakers there." Leader Capital 
Management helped start Hotlens Asia, the Korean affiliate of Hotlens.com, a 
New York-based content management software provider, though Hotlens.com was 
not a Leader portfolio company. Leader Capital Management has also assisted 
in the formation of ITM Korea, the Korean affiliate of an unannounced 
U.S.-based startup that the venture unit is in the process of funding. Leader 
Capital Management, which has a vice president, three managing directors, and 
two analysts sourcing deals, started in June of 2000 and invested in five 
companies last year.  Leader has invested $3 million over the past year in 5 
portfolio companies, and while it has not invested in any new companies this 
year, it plans to invest another $3 million in 6 companies by the end of the 
year, in addition to 2 to 3 follow-on investments and new Asian ventures. The 
venture unit, which is completely funded by parent company SK Global, has no 
plans to seek outside limited partners, but doesn't rule it out. The earliest 
it would search for outside limited partners would be in the next 12 to 18 
months. 
		http://www.leaderok.com
		http://www.skglobal.com
		
		
		 vw corrections 
		?
		Bodha
		 mail? top
		
		 NEW YORK (VENTUREWIRE) -- An item about enterprise software and services 
company Bodha in Monday's VentureWire incorrectly described iBrain, a company 
that Bodha CEO Vishal Sikka founded. iBrain was eventually acquired by 
PatternRx, not PlatnetRx.
		
		
		Silicon Alley Seed Investors
		 mail? top
		
		 NEW YORK (VENTUREWIRE) -- An item about Sevin Rosen Funds in Monday's 
VentureWire misspelled the name of a New York venture firm with which Sevin 
Rosen has a formal relationship. The firm's name is Silicon Alley Seed 
Investors, not Silicon Valley Seed Investors. 
		
		
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Bitlocker.com, Bluefish Wireless, Bom.com, Calix, Casmir, ClairVoyante 
Laboratories, Connected, Cytura, Delphi Display Systems, Everypath, Fluidigm, 
ForwardAction, Global Docugraphix, Grass Valley Group, Guggenheim.com, 
Harmonic Communications, Hydrocision, Leader Capital Management, MetaTV, 
Metera Networks, MetroCommute.com, MobileStar Network, Naviant, NETdelivery, 
ntegres Global Logistics, NxtPhase, Optium, Patricof & Co. Ventures, Qpass, 
Saferent, Schroder Ventures, SK Global, Soma Networks, SRA International, The 
Cobalt Group, Versatile Optical, Vitesse Semiconductor, Wall Street Global, 
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International, Perseus Capital, Pivotal Asset Management, Polaris Venture 
Partners, Potomac Ventures, Redpoint Ventures, Roser Ventures, RRE Ventures, 
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Salford Enterprises, Venrock Associates, Venrock Associates, Western 
Technology Investment, Wexford, Yorkshire Enterprise Group
		
		
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