======================================================
        VENTUREWIRE --- Monday, June 12, 2000
======================================================
           Private Company Business News
------ Published Daily by Technologic Partners -------
           http://technologicpartners.com
======================================================

Top Stories:

o Boston Millennia Closes Second Fund at $410 Million
o Amadeus Capital Partners Raises GBP 100 Million for New Fund
o Moreover.com Raises $21 Million in First Institutional Round
o eToys Acquires eParties For $1.6 Million in Stock
o Fiber Optic Component Designer Raises $55 Million Series A
o Homepage.com Raises $48 Million Mezzanine Round

|||||||||||||||||||| Advertisement ||||||||||||||||||||

Event:  THE BASICS OF B2B - AN INTRODUCTION TO NET MARKETS

Wed. June 21, 2000 * 6pm-9:30pm * Palo Alto, CA
(Palo Alto Hills Golf & Country Club)

An interactive forum designed for B2B investors, executives
and entrepreneurs who want the latest information on
pressing issues facing B2B Internet Marketplaces. Panelists
include:  Tim Clark - Senior Analyst, Jupiter Communications;
Siva Kumar - Co-founder, Impresse; Alex Slusky - Managing
Partner, Vector Capital; Mark Jensen - Exec. VP,  i2;  Greg
Olsen - CTO,  Extricity; Nick Solinger -Product Marketing, Ariba
      Register at:     http://www.tsunamiindia.com
      Phone: 650-814-8627 E-mail:  info@tsunamiindia.com

|||||||||||||||||||||||||||||||||||||||||||||||||||||||

Also in This Issue:

     New Money:
o Education Web Site Zooba Announces $6 Million First Round
o Risk Management Service Provider Launches, Gets $8.2 Million
o E-commerce Software Provider Gets $20 Million in First Round
o Film & TV Show Marketplace Raises $4.8 Million Round One
o Government Internet Services Firm Gets $23 Million, Launches
o Printing E-Procurement Service Raises $3.5 Million Series A
o Ridgewood Names New Investors in Orchid Lightwave's Series A
o Sagemark Funds Linux Application Developer's First Round
o Business Application Provider Raises $500,000 in Series A
o High-Speed Internet Firm Raises $1.65 Million in Seed Funds
o Internet Music Marketing Company Gets $500,000 Seed Funding
o Internet Incubator iSherpa.net Launches With $10 Million
o Ignition Leads Wireless Co. Etrieve's $13 Million Round Two
o Data Search Software Firm Gets $8.5 Million in Second Round
o Navitrak Buys 19.9% of Topographic Map Firm For $1 Million
o Testing Systems Firm Gets $3 Million Series E, New Name

     New Products:
o Business.com Launches Business Search Engine and Directory

     M&A:
o Three Regional Telecom Firms Merge to Form Elantic
o eHolding Merges With Swedish Software Game Developer

     New People:
o Recruiting Firm MorganWorks.com Names Board Chair, New CEO
o E-Commerce Software Firm HipHip Names Attorney to CEO Post
o Broadband Firm Nupremis Appoints Company Co-founder as CEO

     VC Fund News:
o eSouk Confirms Elimination of 15 Member Incubation Staff

     VW Corrections:
o Edventions
o Namezero

|||||||||||||||||||| Advertisement ||||||||||||||||||||

This week in ComputerLetter

Where It's At:
Now that many wireless communications networks
know where we are, the stage is set for location-based
commerce startups

Subscribe at http://www.tpsite.com/tp/cl/default.htm

|||||||||||||||||||||||||||||||||||||||||||||||||||||||

======= Top Stories =======

o Boston Millennia Closes Second Fund at $410 Million

BOSTON -- Boston Millennia Partners said the final
closing of its second fund, Boston Millennia Partners
II, increased the capital of the fund by $110 million.
The fund closed at $410 million. The fund's partners
are institutional investors from 20 countries as
well as the U.S. The company will make initial commitments
of $5 million to $10 million in 30 to 35 companies
in the telecommunications, information technology
and software, and life sciences industries. To date
the fund has invested in thirteen companies including
Deltagen, Optical Solutions, Cirqit, V-Span, InfoImage,
NeoWorld, Politzer & Haney, Netifice Communications,
YankeeTek, and Dawntreader.
http://www.millenniapartners.com/
_____________________________________________

o Amadeus Capital Partners Raises GBP 100 Million for New Fund

LONDON -- Amadeus Capital Partners, which invests
in early-stage technology companies, said it secured
GBP 100 million ($150.7 million) in its first closing
of its Amadeus II fund, which it launched in April.
Amadeus Capital Partners expects the fund to close
completely by the end of 2000. The new fund will
focus on investing in early-stage European technology
companies.
http://www.amadeuscapital.com/
_____________________________________________

o Moreover.com Raises $21 Million in First Institutional Round

LONDON -- Moreover.com, a free online news aggregator,
said it raised $21 million in its first institutional
round of funding. The round was co-led by Reuters
Venture Capital, the investment arm of Reuters Group,
and Atlas Venture Partners. Other investors in the
round include Wit Capital Group, and Advance.Net,
an investment arm of Advanced Publications, parent
company of Conde Nast. The company said the funding
will be used to further develop technology, fund
deals with search engines, develop multilingual
products, and expand the company's US office. David
Lockwood, co-chief executive officer of Reuters
Venture Capital, Ed Sim, of Wit Capital Group, and
Jeff Jarvis, of Advance.Net, will all take seats
on the company's board of directors as a result
of the funding. The company raised its seed funding
from investors including Atlas Venture Partners,
Richard Carter, of Chase Capital Partners, and executives
from Amazon.com.
http://www.moreover.com/
_____________________________________________

o eToys Acquires eParties For $1.6 Million in Stock

SANTA MONICA, Calif. -- eParties, a party-goods
and planning site, was acquired by eToys in a stock
acquisition valued at $1.6 million. Under the agreement,
eToys will purchase the eParties name and certain
proprietary technology, including software that
allows for customization and personalization of
party planning. eToys also said that eParties' chief
executive, David Haddad, will join the company as
a senior vice president. The company was incubated
by eCompanies, a Santa Monica based incubation firm.

http://www.eparties.com/
_____________________________________________

o Fiber Optic Component Designer Raises $55 Million Series A

LOS GATOS, Calif. -- Southampton Photonics, which
designs and develops fiber optic components, said
it raised $55 million in its first round Series
A funding. The round was led by Quantum Technology
Partners. Amadeus Capital Partners, Interwest Partners,
and Sevin Rosen also participated in the financing.
The company said it will use the financing to create
200 high-tech jobs during the next 18 months in
the UK and will also establish design, production
and sales facilities in California where it expects
to employ an additional 250 staff by the end of
2002. Representatives from each of the company's
investors will take seats on the board of directors.

http://www.southamptonphotonics.com/
_____________________________________________

o Homepage.com Raises $48 Million Mezzanine Round

LOS ANGELES -- HomePage.com, a supplier of personalized
Web page applications for e-businesses, said it
raised $48 million in a mezzanine financing round
led by idealab! Capital Partners. Other investors
in the round included new investors Jump Investors
and Robertson Stephens affiliates, as well as existing
investors J. & W. Seligman, idealab! Capital Partners
and Moore Capital Management. The company said the
funding will be used for further growth and international
expansion.
http://www.homepage.com/

======= New Money =======

o Education Web Site Zooba Announces $6 Million First Round

BOSTON -- Zooba.com, a direct marketing infomediary
that provides services to businesses and consumers,
said it raised $6 million in its first round of
funding from sole investor Europe@Web. The round
closed in December of last year. Europe@Web has
two representatives on Zooba.com's board of directors,
including Alex Nigg, senior vice president of its
U.S. division. The company will use the funds for
technology development, marketing, and company expansion.
Zooba.com is raising its second round of funding,
which it hopes to close in July for between $10
million and $15 million. Zooba.com markets material
for writers and publishers through its free Web
services, including email messages and product recommendations.

http://www.zooba.com/
_____________________________________________

o Risk Management Service Provider Launches, Gets $8.2 Million

NEW YORK -- Kiodex, an online provider of risk management
services for the commodities markets, announced
itself and a $8.2 million first funding. The company
will provide risk management services, an automated
order-matching system, and consulting services.
The company raised its first funding from individual
investors. R. Martin Chavez, former director and
global head of energy derivatives at Credit Suisse
First Boston and Credit Suisse Financial Products,
serves as the company's chief executive officer.

http://www.kiodex.com/
_____________________________________________

o E-commerce Software Provider Gets $20 Million in First Round

SANTA CLARA, Calif. -- Webango, a business-to-business
electronic commerce software provider for the procurement
divisions of large and medium-sized businesses,
said it closed its first round of financing with
$20 million. Battery Ventures and Concord Ventures
led the round. Redwood Ventures, which provided
early seed funding, also participated in this round.
The company plans to use the funding for growth.
In April, John Shoemaker, vice president and general
manager of Sun Microsystems' enterprise desktop
and server systems, joined Webango's board of directors.

http://www.webango.com/
_____________________________________________

o Film & TV Show Marketplace Raises $4.8 Million Round One

LOS ANGELES -- Tivix.com, an online resource for
buyers and sellers of film and television programs,
said it received $4.8 million in its first round
of financing. Red Rock Ventures led the round and
was joined by DS Capital, Garage.com, and The Sapling
Foundation. The company plans to use the funding
for technology development and to secure partnerships.

http://www.tivix.com/
_____________________________________________

o Government Internet Services Firm Gets $23 Million, Launches

CHICAGO -- Netgov.com, a provider of Internet services
to local governments and government institutions,
said it raised $23 million in its first institutional,
Series B round of funding. The company also announced
its launch. The funding round was led by Minotaur
Capital Management and included Blue Chip Venture
Company, Gazelle Tech Ventures, and Softbank Venture
Capital. The company will use the funds for its
general operations, including  technology development
and sales and marketing. Netgov.com was formed through
a merger of former Indianapolis Mayor Stephen Goldsmith's
eGov Solutions and Minotaur Capital Management founder
William A. Lederer's AX.com. Mr. Goldsmith is chairman
of Netgov.com and Mr. Lederer is vice chairman.
The company expects to have its Internet government
products and services available by the third quarter
of 2000. Netgov.com develops technology to allow
faster interaction between a government and its
constituents.
http://www.netgov.com/
_____________________________________________

o Printing E-Procurement Service Raises $3.5 Million Series A

MINNEAPOLIS -- Four 51, an online procurement service
for buyers, suppliers, and distributors of print
materials, said it raised $3.5 million in its Series
A funding. Investors in the round include Five Points
Capital, Monarch Capital Partners, Rembrandt Venture
Partners, RS Investment Management, and United Capital
Group. The company said the financing will fund
additional technology development, sales, and marketing
for the company's planned expansion. Paul McNulty,
of Five Points Capital, and Bennie Bray of Monarch
Capital Partners, will serve on the company's board
of directors.
http://www.four51.com/
_____________________________________________

o Ridgewood Names New Investors in Orchid Lightwave's Series A

RIDGEWOOD, N.J. -- Ridgewood Capital said two new
institutions invested in the Series A Funding of
Orchid Lightwave Communications. Global Catalyst
Partners will invest $1 million and Vertex will
invest $400,000 in Orchid Lightwave, bringing the
company's total Series A funding to $4.4 million.
Eliezer Manor of Global Catalyst Partners will join
the company's board of directors. Orchid Lightwave
Communications will use the funds for research and
development and for personnel expenses. Orchid Lightwave
Communications is a manufacturer of fiber optic
components based in Silicon Valley, with a wholly
owned research and development subsidiary in Israel.

http://www.ridgewoodcapital.com/
_____________________________________________

o Sagemark Funds Linux Application Developer's First Round

HOUSTON -- The Sagemark Companies, a publicly traded
financial services company, said it made an equity
investment in Bynari, a developer of Linux-based
applications for enterprise and consumer marketplaces.
Sagemark Capital, in which Sagemark holds a 61.5%
interest, was the only participant in the round,
the first institutional funding for Bynari. Sagemark
president Richard Young will join Bynari's board
of directors. The company will use the funds for
product sales and marketing. The company is launching
products that enable UNIX and Linux desktops, workstations,
and servers to communicate with Microsoft Exchange
enterprises. Bynari has also received backing from
individuals.
http://www.bynari.com/
_____________________________________________

o Business Application Provider Raises $500,000 in Series A

PITTSBURGH, Pa. -- WiredOrg.com, which provides
an infrastructure of business applications, said
it raised a $500,000 Series A round of seed funding.
The round was funded by individuals. The company
will use the funding for launching its beta site,
hiring additional staff, and for building a second
Web site. The company is building an Internet infrastructure
comprised of interconnected intranets, extranets,
enterprise tools, and marketplaces. WiredOrg.com
has been incubated by iventurelab.com, which holds
a minority interest in the company.
http://www.wiredorg.com/
_____________________________________________

o High-Speed Internet Firm Raises $1.65 Million in Seed Funds

NEW YORK -- Global Broadband, an integrated communications
provider focused on high-speed Internet access and 
voice services, said it raised $1.65 million in
its seed round of funding. The company will use
the funds to recruit staff for senior management
positions, develop services, and for marketing.
The company will soon raise a second round of funding
for infrastructure development and for marketing
in New York City, Buffalo, and Boston, and expects
to expand in other areas of the U.S. by 2001.
http://www.glbbinc.com/
_____________________________________________

o Internet Music Marketing Company Gets $500,000 Seed Funding

SAN FRANCISCO, CA, -- Sherpa Ears, whose software
can be used for music promotion and sales on the
Web, said it received $500,000 in seed capital from
Fujipacific Music/Fuji TV and other investors. The
seed funds will be used to develop the firm's applications
and Website. MusicCliques, Sherpa Ears' technology,
uses database architectures and social network analytics
to promote and distribute music for sale. The system
enables the company to track how users share and
recommend music to friends on the Internet. Sherpa
Ears also receives services and assistance from
Scient as a part of its accelerator program. Scient
owns a 2.5% stake in Sherpa Ears. The company will
make announcements about its board of directors
in the near future.
http://www.sherpaears.com/
_____________________________________________

o Internet Incubator iSherpa.net Launches With $10 Million

DENVER -- iSherpa.net, a business incubator focused
on wireless start-ups, announced its launch. The
company closed a first round of financing for $10
million and is in the process of raising additional
funds. The company offers capital, office space,
and business, legal, financial, technical, and recruitment
advice to its portfolio companies. The managing
partners of the firm are Vipanj Patel, previously
an attorney with Morris, Manning & Martin, and Gary
Rohr, a co-founder and principal of Stonebridge
companies. iSherpa.net also launched its first portfolio
company, iSovia, a wireless business-to-business
ASP, with an investment of $1.65 million.
http://www.isherpa.net/
_____________________________________________

o Ignition Leads Wireless Co. Etrieve's $13 Million Round Two

PORTLAND, Ore. -- Etrieve, whose service enables
users to use their wireless phone to listen and
respond to their e-mail while out of the office,
said it raised $13 million in a second round led
by new investor Ignition, the recently created holding
company formed by former Microsoft and McCaw Cellular
executives to invest in wireless Internet companies.
This is Ignition's first investment as a company.
Other investors in the round include returning investors
Timberline Ventures and Venture Partners, as well
as new investors Madrona Venture Group and Softbank
Venture Capital. Today, etrieve launched its first
product etrieve M3 (mobile message management),
which enables consumers to prioritize e-mail based
on specific preferences. The service will page users
when high priority messages arrive, and deliver
the information by voice, Internet, or fax. Jonathan
Roberts, managing director of Ignition, will join
etrieve's board.
http://www.etrieve.com/
_____________________________________________

o Data Search Software Firm Gets $8.5 Million in Second Round

SAN MATEO, Calif. -- nQuire Software, developer
of Internet-based software that enables users to
search and analyse corporate data, said it raised
$8.5 million in second round funding. The funds
will be used for sales, marketing, hiring, product
development, and other purposes. Participants in
the round include Donald L. Lucas, St. Paul Venture
Capital, Doll Capital Management, Telos Venture
Partners, and the law firm of Wilson Sonsini Goodrich
& Rosati. All the investors have previously invested
in the company.
http://www.nquire.com/
_____________________________________________

o Navitrak Buys 19.9% of Topographic Map Firm For $1 Million

TORONTO, Ontario -- Navitrak International, a publicly
traded wireless navigational technology company,
said it completed an agreement to acquire 19.9%
of Maps a la carte and its Web site, TopoZone.com,
for approximately $1 million in cash. The terms
of the deal require an initial payment by Navitrak
of $200,000 and an additional $800,000 at a future
date. Also, the companies have entered into a strategic
agreement under which they will work together to
develop the online topographic mapping business
and related software applications and products.
Maps a la carte will license Navitrak's WHEREver
software for resale and Navitrak will modify the
software to read data from TopoZone.com. One representative
from Navitrak will join Maps a la carte's board.
http://www.topozone.com/
_____________________________________________

o Testing Systems Firm Gets $3 Million Series E, New Name

EDEN PRAIRIE, Minn. -- TestQuest, a provider of
functional testing systems for information appliances
formerly known as B-Tree, said it received $3 million
in its sixth round, Series E funding. Norwest Venture
Partners and RRE Ventures were the sole investors
in the round. The company said the funding will
be used for sales and marketing, and doubling the
size of its staff. Norwest Venture Partners is the
lead investor in B-Tree, along with Essex Venture
Partners, J.F. Shea, Pathfinder, RRE Investors,
and the Travelers.
http://www.testquest.com/

======= New Products =======

o Business.com Launches Business Search Engine and Directory

SANTA MONICA, Calif. -- Business.com, which provides
a directory of Internet businesses, said it launched
its Internet business directory and search engine,
the first of three phases of the company's online
launch. Business.com expects to launch its news
service and press digests in its second phase, and
launch its profiles of industries and companies
in its third phase. The company plans the completion
of the three-part launch to finish by the end of
June. Business.com is incubated by ECompanies.
http://www.business.com/
http://www.ecompanies.com/

======= M&A =======

o Three Regional Telecom Firms Merge to Form Elantic

RICHMOND, Va. -- Three competitive local exchange
carriers said they will merge to form elantic. Cavalier
Telephone, of Richmond, Va., Marlboro, Mass.-based
Conversent Communications, and Florida Digital Network,
of Orlando, Fla., said they will form an integrated
communications provider that will serve consumers
from Maine to Florida. The financial terms were
not disclosed. Upon completion of the merger, elantic
will service more than 67,00 local access lines.
Brad Evans, president of Cavalier, will become chairman
and head the mid-Atlantic group; Robert Shanahan,
president and COO of Conversent, will serve as president
of the Northern region; and Michael Gallagher, president
and CEO of Florida Digital, becomes chief executive
officer and heads the Southern group. Investors
in the company include M/C Ventures, and individual
investors Brad Evans, Bob Fanch of Fanch Communications,
and Clark McLeod, chairman and CEO of McLeod USA.
Elantic will maintain offices along the eastern
seaboard.
http://www.elantic.com/
_____________________________________________

o eHolding Merges With Swedish Software Game Developer

LONDON -- eHolding, a European holding company which
owns and operates media, entertainment, and technology
consulting firms, said it merged with software game
developer Computerhouse. Computerhouse shareholders
will receive 40% of the shares of eHolding for 100%
of the shares of Computerhouse. The exact value
of the deal was not disclosed. Colin Bower, chief
executive officer of eHolding, will remain in that
position following the merger. Gudleiv Bjorklund,
chairman of eHolding, and Mr. Bower will both hold
seats on the new board of eHolding. Three representatives
of Computerhouse will also take seats on the new
company's board of directors. Computerhouse is backed
by Telenor Venture, which will remain a significant
shareholder in the new entity. eHolding's companies
include IT Media, Telecom Revy, and Reply.
http://www.computerhouse.com/
http://www.wapland.com/

======= New People =======

o Recruiting Firm MorganWorks.com Names Board Chair, New CEO

CHICAGO -- MorganWorks.com, a Web-based employment
recruiting company that outsources its software
to other Web sites, said it promoted its founder
and chief executive officer, Bernard Layton, to
the newly created position of chairman of the board.
The company also promoted Rick Salvadore, current
president and COO, to president and chief executive
officer. Mr. Salvadore is also a member of the board.
Prior to joining MorganWorks.com, Mr. Salvadore
was a senior executive at art.com. MorganWorks.com
also launched MorganHires, which helps managers
by matching candidate skills with an employer's
specific needs. The company closed a $5 million
first round of financing in January from Minotaur
Partners.
http://www.morganworks.com/
_____________________________________________

o E-Commerce Software Firm HipHip Names Attorney to CEO Post

MIAMI -- HipHip Software, a developer of Internet
commerce software products for small and medium-sized
companies, said it named Richard C. Bulman as its
new chief executive officer. Mr. Bulman was most
recently a corporate technology attorney with Kirkpatrick
& Lockhart. He was also counsel for IVAX, American
Lawyer Media, Diversified Communications Industries,
and VHC. He also held positions with the New York
State Senate and the New York State Department of
Economic Development. Mr. Bulman succeeds co-founder
and former chief executive officer Melanie Shannon,
who remains with the company as chief marketing
officer. HipHip Software has received one $600,000
bridge loan from individuals. The company is seeking
a $10 million round of funding from individuals
that it expects to close within the next two months.

http://www.hiphip.com/
_____________________________________________

o Broadband Firm Nupremis Appoints Company Co-founder as CEO

BOULDER, Colo. -- Nupremis, which develops broadband
applications, said it named Charles Cadle as chief
executive officer. Mr. Cadle, a co-founder of the
company, was previously the project leader for Callahan
Associates International's non-cable and Internet
business development activities. Last week, the
company raised $25 million in its first round of
funding. The round was raised from Angelo Gordon
& Co., The Edward P. Bass Group, Callahan Associates,
Compaq Computer, and Investcorp. Callahan Associates
led the round.
http://www.nupremis.com/

======= VC Fund News =======

o eSouk Confirms Elimination of 15 Member Incubation Staff

LONDON -- eSouk, an incubator and investor in Internet
companies, confirmed reports that it is cutting
its staff from 22 to 7. The company said it will
no longer incubate companies and that the 15 eliminated
jobs comprised the firm's incubation staff. The
company cited structural changes in the market as
the cause of this change. The firm said that small
and mid-sized UK incubators in particular have been
adversely affected by the market changes. eSouk,
which recently raised a $10 million second round,
will continue to invest in Internet startup companies.
eSouk's portfolio companies were 123immo, NetImperative,
Nutravida.com, and Uvine.com.
http://www.esouk.com/

======= VW Corrections =======

o Edventions

NEW YORK -- An item in Thursday's VentureWire about
Edventions' new funding contained an incorrect URL
for the company. The company's URL is http://www.edventions.com.

_____________________________________________

o Namezero

NEW YORK -- Due to incorrect information from namezero,
a story in last Wednesday's VentureWire concerning
the firm's Series B funding identified Arcadian
Venture Partners and Whitman Capital as previous
investors in the company. Arcadian and Whitman are
new investors in namezero.

|||||||||||||||||||| Advertisement ||||||||||||||||||||

Follow the money.

If your job depends on knowing where private capital
is coming from, where it's going and why, VentureFinance
is for you. Every month, with summaries of deals, analysis
of trends, and forward-looking insights on what's about to
happen. From Technologic Partners, following venture
investing since 1985.

VentureFinance:Capital for Growing Companies

http://www.tpsite.com/tp/vf/default.html

|||||||||||||||||||||||||||||||||||||||||||||||||||||||

SEND TO A FRIEND

To subscribe to VentureWire, tell your friends
and colleagues to go to:
http://www.venturewire.com/register/vw

This copy of VentureWire may be distributed
freely, provided that the distribution is without
charge, that the issue is distributed complete and
unaltered, and that all copies retain the Technologic
copyright notice.
_____________________________________________

TO SUBSCRIBE go to:
http://www.venturewire.com/register/vw

To CHANGE your address, send your old and new e-mail
address to:
change@venturewire.com

To UNSUBSCRIBE, send e-mail to:
listoff@venturewire.com

Send COMMENTS, QUESTIONS, or NEWS ITEMS to:
editor@venturewire.com

Entire Contents Copyright 2000 by Technologic Partners
VentureWire is a Service Mark of Technologic Partners
=====================================