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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 <br>MARKET <br>SUMMARY </b></font>
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<table border="0" width="90%" cellspacing=0 cellpadding=0><tr><td><font face="verdana, arial, geneva, helvetica" size="2">On Monday, VentureWire learned that Guide Ventures, a VC firm focused on West Coast-based seed and early stage IT companies, expects to raise $60 million to $70 million for its third fund next year. The firm will soon finish up investing out of its Guide Fund II, a $21 million fund that has a portfolio of 12 companies so far. Guide Fund III will invest 75% in wireless applications, IT infrastructure, and security and the rest in tools and applications for bioinformatics, a new investment focus for the firm.<br><br>For the 16 startups that pulled in a total of $146 million, including AcceLight, which landed a $60 million Series B, it was a good start to the holiday week. Not so for TechTV. The 24-hour cable television channel covering technology, information,
and entertainment news, said it has laid off 130 employees, a reported 25% of its total staff. The company, which was formerly known as ZDTV, is owned by Vulcan Ventures.<br><br>It may not be bad news for the company, but SafeWeb&#39;s decision to discontiue its free consumer service didn&#39;t brighten the holiday spirits of that service&#39;s users. The company, which develops a secure Web browser that blocks the ability to trace browsing, said it has discontinued the free service to focus on business customers. The company may re-launch the consumer service through a fee-based subscription model, but it is currently focused on its new enterprise security product that has been in development for several months. SafeWeb has received funding from In-Q-Tel, the
CIA&#39;s venture capital fund, which could mean the move is plot of a vast government conspiracy or perhaps it&#39;s just an attempt to actually turn a profit.</font></td></tr></table>
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<br clear=all><table cellpadding=4 BGCOLOR="#FFFFBB"><tr><td><font face="courier" SIZE=2 color="black">Where to Find Follow-On Financing Now:
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<br>being funded every week -- not just seed rounds but
<br>Series B, C, and even later -- and the VentureWire
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<br>doing such deals  outside their own portfolios.
<br>These days, executive time is  more precious than
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<br>who are fully invested, or engulfed with  triage on
<br>ailingn portfolios. Pitch the firms with plenty of
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<br>thrive in the  upturn. Order your VentureWire Special
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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="vwLJQKMONIJI"><b><font face="verdana, arial, geneva, helvetica" size="2">Guide Ventures Plans $60 Million Fund for IT, Bioinformatics</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=LJQKMONIJI" 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">SEATTLE -- Guide Ventures, a venture capital firm focused on seed and early stage IT companies on the West Coast, expects to raise $60 million to $70 million for its third fund next year, managing director Russ Aldrich told VentureWire.
 </font> [<a href="http://professional.venturewire.com/prostory.asp">more..</a>]<br>
<a href="http://www.guideventures.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.guideventures.com</font></a>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwLNIHPHMIJI"><b><font face="verdana, arial, geneva, helvetica" size="2">Pequot Opens First West Coast Office in Menlo Park</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=LNIHPHMIJI" 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">MENLO PARK, CALIF. -- Pequot Ventures, the direct venture investment arm of Pequot Capital Management, said it has opened a Menlo Park, Calif. office, its first on the West Coast.
 </font> [<a href="http://professional.venturewire.com/prostory.asp">more..</a>]<br>
<a href="http://www.pequotcap.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.pequotcap.com</font></a>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwQJINJINIJI"><b><font face="verdana, arial, geneva, helvetica" size="2">Vulcan Venture&#39;s TechTV Lays Off 130 Staffers</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=QJINJINIJI" 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 FRANCISCO -- TechTV, a 24-hour cable television channel covering technology, information, and entertainment news, said it has laid off 130 employees
 </font> [<a href="http://professional.venturewire.com/prostory.asp">more..</a>]<br>
<a href="http://www.techtv.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.techtv.com</font></a>
</td></tr></table><br>
<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwNMQOKNMIJI"><b><font face="verdana, arial, geneva, helvetica" size="2">SafeWeb Discontinues Free Service, Will Launch New Product</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=NMQOKNMIJI" 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">EMERYVILLE, CALIF.   -- SafeWeb, the developer of a secure Web browser that blocks the ability to trace browsing online, said it has discontinued its free, consumer service.
 </font> [<a href="http://professional.venturewire.com/prostory.asp">more..</a>]<br>
<a href="http://www.safeweb.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.safeweb.com</font></a>
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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>
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<font face="verdana, arial, geneva, helvetica" size="1" color="gray">454.9 &nbsp; -1.37%</font>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwMJJPNMMIJI"><b><font face="verdana, arial, geneva, helvetica" size="2">netForensics Locks in $10.8 Million in Ongoing Series B</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=MJJPNMMIJI" 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">EDISON, N.J. -- netForensics, a developer of software for real-time network security information and analysis, is expected to announce it has raised $10.8 million in its ongoing Series B round.
 </font> [<a href="http://professional.venturewire.com/prostory.asp">more..</a>]<br>
<a href="http://www.netforensics.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.netforensics.com</font></a>
</td></tr></table><br>
<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwNIOKLJLIJI"><b><font face="verdana, arial, geneva, helvetica" size="2">AcceLight Networks Raises $60M in Series B Round</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=NIOKLJLIJI" 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">PITTSBURGH -- AcceLight Networks, which designs and manufactures a photonic service switch, said it raised $50 million in equity and $10 million in debt financing in its over-subscribed Series B round of funding.
 </font> [<a href="http://professional.venturewire.com/prostory.asp">more..</a>]<br>
<a href="http://www.accelight.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.accelight.com</font></a>
</td></tr></table><br>
<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwLLHQMKMIJI"><b><font face="verdana, arial, geneva, helvetica" size="2">Aegis Analytical Gets $14.5 Million in Second Round Funding</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=LLHQMKMIJI" 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">LAFAYETTE, COLO. -- Aegis Analytical, a provider of manufacturing informatics software systems for pharmaceutical and other manufacturers, said it received $14.5 million in second-round funding.
 </font> [<a href="http://professional.venturewire.com/prostory.asp">more..</a>]<br>
<a href="http://www.aegiscorp.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.aegiscorp.com</font></a>
</td></tr></table><br>
<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwNIKIHPLIJI"><b><font face="verdana, arial, geneva, helvetica" size="2">Inventory Software Firm Contextual Launches with $11M</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=NIKIHPLIJI" 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">AUSTIN, TEXAS -- Contextual, a software company providing Web-based tools to manufacturers and distributors, announced its launch with $11 million in funding.
 </font> [<a href="http://professional.venturewire.com/prostory.asp">more..</a>]<br>
<a href="http://www.contextual.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.contextual.com</font></a>
</td></tr></table><br>
<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwHHMJJMLIJI"><b><font face="verdana, arial, geneva, helvetica" size="2">Audio Conferencing Firm Octave Sounds Out $17M in Round Four</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=HHMJJMLIJI" 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">NASHUA, N.H. -- Octave Communications, a provider of hardware and software for audio conferencing, said it raised $17 million in its fourth round of funding.
 </font> [<a href="http://professional.venturewire.com/prostory.asp">more..</a>]<br>
<a href="http://www.octavecomm.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.octavecomm.com</font></a>
</td></tr></table><br>
<br clear=all><table cellpadding=4 BGCOLOR="#FFFFBB"><tr><td><font face="courier" SIZE=2 color="black"><center><img border="1" height="110" width="82" src="http://venturewire.com/ads/110x82ads/Friedman.jpg" alt="Healthcare Outlook"></center>
<br>Dr. Michael Friedman
<br>SVP, Research & Development
<br>Pharmacia Corp.
<br>
<br>If it&#39;s an expert viewpoint from both sides of the
<br>regulatory divide you&#39;re looking for, Michael Friedman&#39;s
<br>superbly qualified to ask.  A former acting commissioner
<br>of the FDA, and currently head of research at Pharmacia,
<br>he understands both the drug regulatory process and the
<br>pharmaceutical research and development process
<br>intimately.  He bridges all the key areas on what it
<br>takes to get a drug through development and approval.
<br>On October 30th, it was announced that he will spearhead
<br>the Pharmaceutical Research and Manufacturers of America&#39;s
<br>(PhRMA) initiative to protect public health as PhRMA&#39;s
<br>Chief Medical Officer for Biomedical preparedness.
<br>
<br>Register your place today to hear his address at
<br>Healthcare Outlook
<br>
<br>Healthcare Outlook
<br>San Francisco Airport Marriott
<br>January 22, 2002<br><br><a target=" _new" href="http://venturewire.com/ads/ad.asp?id=1580">http://www.healthcareoutlook.com</a></font></td></tr></table><br>
<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwNQLPQLMIJI"><b><font face="verdana, arial, geneva, helvetica" size="2">Red Herring Cuts 27%, Puts Conference Business on Ice</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=NQLPQLMIJI" 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 FRANCISCO -- Red Herring Communications, a publisher of print and online news publications, has laid off 27% of its employees and canceled conferences planned for the first half of 2002, a spokesperson said.
 </font> [<a href="http://professional.venturewire.com/prostory.asp">more..</a>]<br>
<a href="http://www.redherring.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.redherring.com</font></a>
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<br clear=all><table cellpadding=4 BGCOLOR="#FFFFBB"><tr><td><font face="courier" SIZE=2 color="black"><center><img border="1" height="60" width="120" src="http://venturewire.com/ads/120x60ads/alchemy.jpg" alt="Pervasive Computing Outlook"></center>
<br>In today&#39;s world, alchemy has less to do with transmuting
<br>lead into gold than it does turning silicon into cash.
<br>Alchemy Semiconductor, an Austin-based fabless
<br>semiconductor company founded by key members of the
<br>former DEC Alpha/StrongARM design team, has focused its
<br>wizards on developing high-performance, low-cost
<br>systems-on-a-chip for PDAs, Internet appliances, and
<br>other Internet edge devices. Among the latest feats
<br>is a processor that can handle real-time streaming
<br>video and audio in the MPEG-4 format. CEO Jim Moore
<br>will present Alchemy&#39;s story and technology at
<br>Pervasive Computing Outlook.
<br>
<br>Register today to guarantee your place.
<br>
<br>Pervasive Computing Outlook
<br>December 4 & 5, 2001
<br>San Francisco Airport Marriott<br>
<a target=" _new" href="http://venturewire.com/ads/ad.asp?id=1581">http://www.pervasivecomputingoutlook.com</a></font></td></tr></table>
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