VentureWire Alert <http://alert.venturewire.com> 	 For Jeffrey Dasovich, Enron 	


VENTURE 
MARKET 
SUMMARY 

	It was fairly quiet on the VC front Wednesday as ten companies reported raising approximately $59 million.
The big winner was GeneFormatics, a structural proteomics company, that raised $22 million in third-round funding
led by Perseus-Soros, which also led the company's $15 million Series B round last October. Meanwhile, education software company Carnegie Learning pulled in a $14 million second round co-led by previous investors Collier Investments and Draper Triangle Ventures. The company also announced that Robert Longo resigned as president and CEO to join Emerald Partners, a consulting firm, and that it has laid off approximately 30% of its staff.

In more promising news for the life sciences sector, JPMorgan Partners and PPD, a provider of discovery and development services and products for pharmaceutical and biotechnology companies, teamed up to form a new company called Apothogen, which will acquire, develop, and commercialize pharmaceutical products.

Webvan was also in the news again as WhyRunOut.com, an online provider of neighborhood retail and delivery services in Southern California, said it has acquired the rights to the West Coast customers of the defunct online grocery service that filed for bankruptcy last July for an undisclosed amount of cash. Undaunted by Webvan's much publicized demise, Dan Frahm, president of WhyRunOut, expects to expand to most or all of the West Coast markets for which it now has customer lists by sometime next year. The company is not hunting for new funding, but it may fundraise as it expands to the new markets. Why not? - By John Fuller <mailto:fuller@technologicp.com>	


The complete text of the stories below, as well as 22 additional venture-capital and private-company stories, are available today exclusively to subscribers to our new, premium service, VentureWire Professional. Find out more. <http://professional.venturewire.com/m2_professional.asp> 

Executive Summit 
The Fairmont
San Jose, CA
November 6, 2001
Executive Summit <http://events.venturewire.com/summit/>
Under Cynthia's leadership, Coppercom was able to secure follow-on funding of more than $65 million even in today's brutal financing climate. Cynthia has spent 20 years in high technology, playing an integral role in the management of marketing, business and corporate development, and sales for a variety of emerging companies. Prior to Coppercom, she was senior VP of corporate development and the product business units for Madge Networks, and co-founder of Red Brick Systems. And at 9.25am on Tuesday, November 6 at the Fairmont in San Jose, she joins Ken Wilcox, President and Chief Executive of Silicon Valley Bank on a panel discussing financing options and cash management strategies for private companies in these turbulent times. Register today to guarantee your place.  <http://events.venturewire.com/summitEvent.asp>	

 your account <http://alert.venturewire.com/account.asp>
 *  Change your e-mail address
 *  Thoughts, suggestions, commentary
 *  Cancel your account
 *  This newsletter was mailed to you at: jdasovic@ENRON.COM   

 contact
 *  Send news items to: editor@venturewire.com <mailto:editor@venturewire.com>
 *  Send questions, complaints, or service queries to: help@venturewire.com <mailto:help@venturewire.com>
 *  Send advertising inquiries to: advertise@venturewire.com <mailto:advertise@venturewire.com>



Technology is still the future. Be there.

Never before have startups been hit so hard.  Although
the longer term outlook remains bright, companies that
don't make the right moves now won't be around to enjoy
it. So VentureWire is calling together some of the
industry's most experienced executives, investors, and
experts for a one-day summit conference on private-
company leadership in these uncertain times. You'll get
practical advice from CEOs, COOs, and CFOs who've
managed venture-backed companies in crisis, as well as
straight talk from leading venture capitalists,
investment bankers, attorneys, and specialists in HR and
PR. Technology is cyclical, we all know that; think of
this as preparation for the coming upturn.

Managing in the Downturn:
Survival Strategies for 2002
A VentureWire Executive Summit
Fairmont Hotel, San Jose
November 6, 2001

	http://events.venturewire.com/summit/default.asp <http://venturewire.com/ads/ad.asp?id=1404>
 advertise <http://alert.venturewire.com/adv.asp>
 tell a friend <http://venturewire.gazooba.com/cid1201/tellafriend.html>

VENTUREWIRE INDEX <http://venturewire.com/index.asp> VentureWire Index <http://venturewire.com/index.asp>
504.2   -0.04% 	
NOTABLE DEALS


JPMorgan Partners, PPD to Launch Pharma Firm Apothogen	  mail <http://alert.venturewire.com/o_mailer.asp?sid=QNQPIKKLII>  	
NEW YORK -- JPMorgan Partners and PPD, a provider of discovery and development services and products for pharmaceutical and biotechnology companies, said they have formed a new company called Apothogen, which will acquire, develop, and commercialize pharmaceutical products. [more.. <http://professional.venturewire.com/prostory.asp>]
	

Carnegie Learning Gets $14M Second Round, CEO Resigns	  mail <http://alert.venturewire.com/o_mailer.asp?sid=IHNOHMJLII>  	
PITTSBURGH -- Carnegie Learning, a provider of educational software for math and writing, said it raised $14 million in its second round of funding. The company also announced that Robert Longo has resigned as president and CEO to join Emerald Partners, a consulting firm, and that it has laid off approximately 30% of its staff. [more.. <http://professional.venturewire.com/prostory.asp>]
<http://www.carnegielearning.com> 	

Facing Microsoft Foreclosure, Reciprocal Scrambles For Funds	  mail <http://alert.venturewire.com/o_mailer.asp?sid=NKNMLPJLII>  	
NEW YORK -- Reciprocal, a digital rights management company, is making a last ditch effort to close on a new round of funding to avoid being taken over by Microsoft. The company, which took a $10 million bridge loan from Microsoft earlier this year, is reorganizing under a new entity to be called "Newco." [more.. <http://professional.venturewire.com/prostory.asp>]
<http://www.reciprocal.com> 	



Cyternex Gets $1.55M to Close Series A at $3.5M	  mail <http://alert.venturewire.com/o_mailer.asp?sid=IHLJOKJLII>  	
SAN DIEGO -- Cyternex, a biotechnology company developing small molecule anticancer agents, said it has raised another $1.55 million in Series A funding to cap the round at $3.5 million. [more.. <http://professional.venturewire.com/prostory.asp>]
<http://www.cyternex.com> 	

Proteomics Firm GeneFormatics Gets $22M in Third Round 	  mail <http://alert.venturewire.com/o_mailer.asp?sid=NKLLKHJLII>  	
SAN DIEGO -- GeneFormatics, a structural proteomics company, said it raised $22 million in third-round funding. [more.. <http://professional.venturewire.com/prostory.asp>]
<http://www.geneformatics.com> 	

National Credit Group Raises $2M in First Round	  mail <http://alert.venturewire.com/o_mailer.asp?sid=IPNIKPILII>  	
PLAINVIEW, N.Y. -- National Credit Group, which provides business credit reporting online, said it raised $2 million in its first round financing. [more.. <http://professional.venturewire.com/prostory.asp>]
<http://www.ncgcredit.com> 	


Lighting the Path to Network Profitability

An unsteady economy cannot derail the promise of the
next generation of optical components and subsystems.
From switching technologies to DWDM components to signal-
conditioning devices to transport systems, up to 100
companies will set the private equity platform at the
VentureWire's Optical Portfolio in Boston.

Axsun Technologies, Bandwidth9, Lightchip, PhotonEx,
SpectraSwitch- just a handful of what to expect. Decide
for yourself which company has the best positioning in
the market and who is the most likely to succeed.

VentureWire Optical Portfolio,
Boston Marriott Cambridge, October 24 & 25, 2001
Register online at:

http://www.opticalportfolio.com <http://venturewire.com/ads/ad.asp?id=1405>

Alltrue Lays Off 69%, Restructures as TV Production Company	  mail <http://alert.venturewire.com/o_mailer.asp?sid=LHJMOMJLII>  	
NEW YORK -- Alltrue Networks, which operates a reality-based online video network, has decided to abandon its e-commerce Web site, Alltrue.com, and restructure its business model to focus on television production, co-founder Tim Nye told VentureWire. The company will lay off 69% of its staff. [more.. <http://professional.venturewire.com/prostory.asp>]
<http://www.alltrue.com> 	

WhyRunOut.com Acquires Customer Lists From Webvan	  mail <http://alert.venturewire.com/o_mailer.asp?sid=QJQMNJLLII>  	
ALISO VIEJO, CALIF. -- WhyRunOut.com, an online provider of neighborhood retail and delivery services in Southern California, said it has acquired the rights to the West Coast customers of Webvan, the defunct online grocery service that filed for bankruptcy last July, in an all-cash deal. [more.. <http://professional.venturewire.com/prostory.asp>]
<http://www.whyrunout.com> 	

Brience	  mail <http://alert.venturewire.com/o_mailer.asp?sid=NINQNIJLII>  	
NEW YORK -- A story in Wednesday's edition incorrectly identified Jim Drumright's title at Brience as president and COO. Mr. Drumright serves solely as COO. Rod McGeary is president and CEO of Brience. [more.. <http://professional.venturewire.com/prostory.asp>]
	



Digital Anything, Networked Everything ...
Even in the economic downturn, high-profile companies
are directing investment and development focus on the
technologies that are fueling the next wireless
revolution.
From traditional industries like semiconductors to new
ones like telematics, the most promising 100 companies
will present during our private equity platform at
Pervasive Computing Outlook.
Atheros, Rioport, and WhereNet are just a few of the
companies to expect. Hear the business plans and pick
the winners that are capitalizing on the rise of
inexpensive intelligence at the edge of the Internet.
Register today and SAVE $300.
Pervasive Computing Outlook
December 3 & 4 at the San Francisco Airport Marriott

	http://www.pervasivecomputingoutlook.com/register.asp <http://venturewire.com/ads/ad.asp?id=1406>

To cancel, change, or update your subscription:
<http://alert.venturewire.com/account.asp>