======================================================
        VENTUREWIRE --- Wednesday, June 7, 2000
======================================================
           Private Company Business News
------ Published Daily by Technologic Partners -------
           http://technologicpartners.com
======================================================

Top Stories:

o H&Q Asia Pacific Closes New $750 Million Fund
o CacheFlow Acquires Springbank Networks For $180 Million
o FatBrain Spinoff MightyWords Raises $36 Million First Round
o WR Hambrecht Gets $83 Million From Amex and Others
o Morgan Stanley Senior Analyst Leaves to Start B2B Company
o Telecom Company American Broadband Gets $200 Million

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Also in This Issue:

     New Money:
o Broadband Firm Uses $25 Million First Funds for Acquisitions
o B2B Market Software Developer Gets $6 Million Series A
o Charity Enabler GivingCapital Gets $4.5 Million First Round
o Incubator Announces $1 Million iNoize Funding, Firm Launches
o Internet Data Integration Firm Gets $13.8 Million Round One
o Online Applications Company Fullscope Gets $4 Million Seed
o Apparel Marketplace ThreadExchange.com Raises First Round
o Debit Card For Downloads Company Gets $750,000 Seed Funds
o Net Appliance Software Firm Raises First Institutional Round
o PC and Internet Provider Takes $2 Million in First Round
o Source of Salary Information Has $1.5 Million First Round
o Space Video Stream Developer Holds $5 Million First Round
o Urban Lifestyle Portal and B2B Service Raises Seed Funding
o Web Publishing Automation Services Firm Closes Seed Round
o $40 Million Third Round for Optical Network Equipment Firm
o Brecis Communications Gets $20.5 Million
o European Incubator, Protege, Secures $45 Million Round Two
o Microprocessor Firm ARC Cores Gets $50 Million in New Funds
o Religious Site Beliefnet Raises $20 Million in Second Round
o Web-based Currency Firm Beenz Gets Raises $51.4 Million
o $24 Million Second Round for ASP Eureka Broadband
o Administrator for Online Marketplaces Gets $6.7 Million
o DSL Firm AccessLan Communications Raises $35 Million Round
o E-Security Software Company Gets $9 Million Second Round
o meVC Invests $7 Million in Endymion Systems
o Online Job Market Firm Takes $3 Million in its First Round
o Optical Micro-Machines Gets $75 Million in Third Round Funds
o Report: SupplyForce.com Raises $52 Million in Second Round
o Zack Network Receives Investment, Names New Board Members
o CyberStarts Invests $5 Million in Online Insurance Provider
o E-Learning Company gForce Gets $16.5 Million Third Round
o Free Domain Name Firm Namezero Raises $6.8 Million Series B
o Music Portal Site Net4Music Raises $16 Million Third Round
o Breakthrough Software Completes $8 Million in Second Round
o Content Filter Firm Sageware Gets $13.5 Million Third Round
o Design Automation Software Firm Gets $7 Million Third Round
o Imperial Bank Invests $1.5 Million in Tonic Software
o Norkom Technologies Raises $6 Million in Third Round
o SPSS Makes $1 Million Strategic Investment in E.Intelligence
o Tessera Raises $5 Million in Add-on Mezzanine Funds
o Genesys Angelbridge Fund Invests $4 Million in uGetHeard
o Residential Gateway Firm Closes $10 Million Fourth Round
o $2.5 Million Third Round for Voice Recognition Software Firm

     New Products:
o govWorks Forms E-Government Subsidiary for Latin America
o Children's Content & Marketing Site Tykesville.com Launches
o Health and Spirituality Site eSpirituality.com Launches
o Online Movie Ticketing Firm Fandango Announces Itself

     M&A:
o Bricsnet to Acquire E-Commerce Product Provider Viscomm
o Canon Communications Acquires Online Supplier Database
o Original Media Buys Financial Network, FallingShort.com

     New Directors:
o Marketing Software Developer Names Cisco Exec to Board
o Telicor Names Cisco Executive to Board
o Optical Firm Kestrel Solutions Names Brocade CEO to Board
o PC Software Firm DigitalSquare Names Two New Board Members
o Human Resources Portal Adds Business Consultant to Board

     New People:
o Internet Storage Company 3Ware Names New President & CEO
o Online Retail Partners Names Investcorp Exec as New CEO
o Promotional Material Provider Logowire Names Top Execs
o Risk Management Firm OperationalRisk Names First President

     VC Fund News:
o Q Funding Launches New Dallas-Based Incubator

     VC Personnel:
o B2B Investor DigitalVentures Names New Managing Director
o Bright Station Names Executive of Internet Venture Division
o LaunchCenter 39 Names Ex-boo.com Director General Manager

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

o H&Q Asia Pacific Closes New $750 Million Fund

PALO ALTO, Calif. -- H&Q Asia Pacific, a private
equity investment company, said it closed its third
fund, Asia Pacific Growth Fund III. At $750 million,
the fund is the company's largest. It will focus
on Internet infrastructure investment opportunities
in the Asia Pacific region. Telephone 650-838-8037.
_____________________________________________

o CacheFlow Acquires Springbank Networks For $180 Million

SUNNYVALE, Calif. -- CacheFlow, a publicly traded
company which provides technology to accelerate
and manage the flow of online information, said
it acquired Springbank Networks of Palo Alto, Calif.
The stock transaction is valued at $180 million.
Springbank will be integrated into CacheFlow and
all employees of Springbank will relocate to CacheFlow
headquarters. No management changes were announced.
Springbank Networks has received financing from
Sequoia Capital.
http://www.cacheflow.com/
_____________________________________________

o FatBrain Spinoff MightyWords Raises $36 Million First Round

SANTA CLARA, Calif. -- MightyWords, formerly an
online publishing subsidiary of publicly traded
FatBrain.com, said it received $36 million in funding
in its first round of institutional funding. The
round was led by Barnes & Noble.com, which contributed
$20 million in exchange for a 30% stake in the firm.
Vulcan Ventures contributed an additional $10 million
and $6 million was raised from other investors including
APV Technology Partners, Highland Capital Partners,
and Millennium Technology Ventures. Vulcan Ventures
will hold a 15% stake, Millennium Technology Ventures
4%, and both Highland Capital Partners and APV Technology
Partners will hold 1.5% of the company. FatBrain.com
will retain 23% of the company. Chris MacAskill,
chief executive officer of MightyWords and founder
and CEO of FatBrain, will serve as chairman of the
MightyWords board of directors. Two representatives
of Barnes & Noble.com, one representative from Vulcan
Ventures, and one representative from Millennium
Technology Ventures will take seats on the company's
board of directors. Dennis Capovilla, the new chief
executive officer of FatBrain.com, will also serve
on the MightyWords board. The company said the funding
will be used for system development and content
acquisition as well as an $8.5 million payment to
FatBrain.com as reimbursement for expenses incurred
on behalf of the subsidiary over the past five months.
http://www.mightywords.com/
_____________________________________________

o WR Hambrecht Gets $83 Million From Amex and Others

SAN FRANCISCO -- WR Hambrecht, an online investment
bank, said it received $83 million in Series C funding.
American Express, Scudder Kemper Investments, Texas
Pacific Group, Hikari Tsushin Capital, J.F. Shea
Co., Crimson Ventures, Park Avenue Capital, epartners,
American Century, and Instinet participated in the
round. Instinet, American Century, and epartners
are return investors. The company also said Clay
Christensen joined its board. Mr. Christensen is
a Harvard Business School professor and author of
the book "The Innovator's Dilemma."
http://www.wrhambrecht.com/
_____________________________________________

o Morgan Stanley Senior Analyst Leaves to Start B2B Company

NEW YORK -- Rafael Bello, Morgan Stanley Dean Witter's
senior Latin American banking analyst, said he is
leaving the firm to launch a new company called
BNB Capital. The company will develop and operate
business-to-business exchanges. The exchanges will
seek venture capital backing, a company spokesperson
said. The company's first exchange will be an agricultural
e-market, which will begin operating early this summer.
http://www.bnbcapital.com/
_____________________________________________

o Telecom Company American Broadband Gets $200 Million

PROVIDENCE, R.I. -- American Broadband, a Boston-based
cable and telecommunications company, said it secured
$200 million in financing. CIBC World Markets provided
the company with $150 million in senior debt financing.
$50 million in equity capital was received from
Great Hill Partners. The company was co-founded
by Great Hill in 1999. The company expects to use
$170 million to construct an advanced communications
network in Rhode Island.
http://www.american-broadband.com/

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

o Broadband Firm Uses $25 Million First Funds for Acquisitions

BOULDER, Colo. -- Nupremis, which develops broadband
applications, said it raised $25 million in its
first round of funding, which it used to acquire
three companies. The round was raised from Angelo
Gordon & Co., The Edward P. Bass Group, Callahan
Associates, Compaq Computer, and Investcorp. Callahan
Associates led the round. Nupremis used the funding
to complete the acquisitions of three companies
in deals valued at a total of $52 million in cash
and stock. The acquired companies were Cenera, an
electronic business integrator and Web services
company; Interware, a Hungarian ASP and the country's
fourth largest ISP; and NewEraCom, which operates
a broadband network in the Southeastern U.S. The
acquired companies will act as offices of Nupremis
in their respective regions. All senior management
of the acquired companies will take management positions
with Nupremis. The company's board consists of Douglas
K. Bratton of The Edward P. Bass Group, David Roberts
of Angelo Gordon & Co., Rick Dakin, formerly of
Centera and president and COO of Nupremis, Chuck
Cadle, chief executive officer of Nupremis, and
three representatives of Callahan Associates including
Bill Barker, company founder Richard Callahan, and
another representative to be determined.
http://www.nupremis.com/
_____________________________________________

o B2B Market Software Developer Gets $6 Million Series A

NEWPORT BEACH, Calif. -- CommerceScout, which develops
software for business-to-business Internet markets,
said it raised $6 million in its Series A round
of funding. Edgewater Funds and Weiss Peck & Greer
each contributed $3 million in the round. Edgewater
Funds partner Mark McManigal has been named to the
board of directors. The company also said it named
Bruce Frcek, chairman and CEO of Xcelerate, to the
board. CommerceScout will use the funds for further
portal development, sales, and partnership development.
The company's software enables business-to-business
market navigation, procurement, and decision support.
CommerceScout expects to launch an industry-specific
portal in the third quarter of 2000.
http://www.commercescout.com/
_____________________________________________

o Charity Enabler GivingCapital Gets $4.5 Million First Round

PHILADELPHIA -- GivingCapital, developer of a software
application that helps nonprofit organizations receive
and process online donations through their Web sites,
said it raised $4.5 million in its first round of
financing from private investors. The company plans
to use the funding for sales and marketing, strategic
partnerships, and product development. Noreen Harrington,
David Holtzman, Jim Martin, Rich Masterson, and
John Schotz, all individual investors who participated
in this round, were named to the board of directors.
The total number of board members is now eight.
GivingCapital takes a percentage of the money collected
using its fund-raising tool rather than charging
non-profits a fee up-front.
http://www.givingcapital.com/
_____________________________________________

o Incubator Announces $1 Million iNoize Funding, Firm Launches

LEXINGTON, Ky. -- Incubator eCorporation made four
announcements at the Silicon Central eConference.
eCorporation announced that one of its portfolio
companies, iNoize.com, raised $1 million in early-stage
funding from SouthEast Interactive Technology Fund.
iNoize.com will provide media content resources
for multimedia professionals such as editors and
content creators. iNoize.com is majority-owned by
eCorporation and expects to launch this summer.
The incubator also said it will launch the Silicon
Central Angel Network. The new group will be collection
of individual investors, venture capital firms,
incubators, and providers of professional services
that will invest in Internet companies in the so-called
"Silicon Central" region of Kentucky, Tennessee,
Ohio, Indiana, and Illinois. eCorporation also said
it will partner with AF Kelly to launch Edulab,
an Internet-based education network, and that it
will launch TuneItIn.com, an online music provider.
eCorporation is backed by SouthEast Interactive
Technology Fund.
http://www.ecorporation.com/
_____________________________________________

o Internet Data Integration Firm Gets $13.8 Million Round One

PITTSBURGH, Pa. -- Cerebellum Software, which develops
and markets Internet data integration products that
link e-business applications with corporate data
systems, said it raised $13.8 million in a first
round funding led by Birchmere Ventures, with CEO
Venture Fund participating. Ned Renzi, partner at
Birchmere Ventures, will be added to Cerebellum
Software's board of directors, which now stands
at seven. The company will use the funding to expand
its domestic and international operations. The company's 
product, Cerebellum, enables a development team
to create and add real-time data integration into
Web applications.
http://www.cerebellumsoft.com/
_____________________________________________

o Online Applications Company Fullscope Gets $4 Million Seed

ANN ARBOR, Mich. -- Fullscope, a provider of online
applications and services, said it received $4 million
in first round seed money. A group of investors,
including Enterprise Development Fund, Marathon
Fund, Scient, and Wakefield Group provided the financing.
http://www.fullscope.com/
_____________________________________________

o Apparel Marketplace ThreadExchange.com Raises First Round

PITTSBURGH -- ThreadExchange.com, an online sourcing
exchange for the global apparel market, raised $5.5
million in Series A funding, according to lead investor
Redleaf Group. Redleaf Group invested $4.8 of the
company's $5.5 million round. Other investors in
the round included garage.com, and individual investors.
The company will use the funding for staffing and
technology development, the Redleaf Group said.
Mike Nelson of Redleaf Group will take a new seat
on the ThreadExchange.com board of directors.
ThreadExchange.com provides full-service sourcing to
retailers, wholesalers, and importers.
http://www.redleaf.com/
http://www.threadexchange.com/
_____________________________________________

o Debit Card For Downloads Company Gets $750,000 Seed Funds

NEW YORK -- Downloadcard.com, which provides pre-paid
debit cards for downloading all types of media from
the Internet, said it raised $750,000 in seed funding
from a group of strategic investors, including N2
Ventures, which agreed to incubate the company,
and Dontel International, a manufacturer and distributor
of pre-paid phone cards. A representative from N2
Ventures, Dontel, and Keefe, Bruyette & Woods, an
investment banking firm that advises Downloadcard.com,
will join the board of directors. The Web site is
scheduled to launch at the end of June.
Telephone 646-337-5885.
_____________________________________________

o Net Appliance Software Firm Raises First Institutional Round

SAN FRANCISCO -- MiddleSoft, a developer of a software
platform for the Internet appliance market, said
it raised an undisclosed amount in its first round
of institutional funding. The round was led by BPI
Capital and included JMI Equity Fund. BPI Capital
managing director Hamilton F. Potter III will join
the company's board of directors. MiddleSoft will
use the funds for general working capital. The company
is also backed by individuals. MiddleSoft's platform
uses vector animation technology and integrates
handwriting recognition, Web access, and e-mail.
The company expects to launch its first product
in August 2000.
http://www.middlesoft.com/
_____________________________________________

o PC and Internet Provider Takes $2 Million in First Round

RESTON, Va. -- FamilyPC.Net, which provides personal
computers, Internet access, and other services for
a monthly fee, said it raised over $2 million in
its first venture round of funding from PSINet Ventures,
the venture capital division of PSINet. The investment
comes in the form of a services-for-equity agreement
over a two year time frame. Richard Frizalone of
PSINet will join FamilyPC.Net's board of directors.
The company will use the funds for further development
of products and services. FamilyPC.Net's services
include computer training and support and a suite
of Internet services.
http://www.familypc.net/
_____________________________________________

o Source of Salary Information Has $1.5 Million First Round

WELLESLEY, Mass. -- Salary.com, which provides online
compensation information for individuals, business
managers and human resource professionals, said
it received $1.5 million in first round funding.
The round was led by Lyric Capital with Ascendant
Capital and individual investors participating.
Terry Temescu of Lyric Capital, and Bob Stein of
Ascendant Capital, were added to the company's board
of directors. The appointments bring the total number
of board members to four. The company will use the
funding to hire personnel.
http://www.salary.com/
_____________________________________________

o Space Video Stream Developer Holds $5 Million First Round

STENNIS CENTER, Miss. -- AstroVision International,
a developer of a video-streaming satellite system,
said it raised $5 million in its first round of
venture funding. The round was funded by Sofinov,
a subsidiary of pension fund Caisse de depot et
placement du Quebec, and Virginia-based SpaceVest.
The company will use the funds to select a contractor
for construction of its five satellite system. The
company is associated with Mississippi Space Commerce
Initiative and the Mississippi Enterprise for Technology
incubator. AstroVision International is developing
a satellite system that will provide a live, continuous,
color, high-definition video stream of earth from space.
http://www.astrovis.com/
_____________________________________________

o Urban Lifestyle Portal and B2B Service Raises Seed Funding

LOS ANGELES -- Urbangoods.com, a portal for music,
fashion, and content for urban dwellers, said it
raised $1 million in its seed funding. The round
was financed by undisclosed individual investors.
The company intends to open a $10 million second
round in late June. Through its portal, the company
provides e-commerce capabilities for small and medium-sized
businesses serving the urban market. The site covers
approximately fifty cities, and profiles targeted
retail establishments, nightclubs, hotels, salons,
and related businesses and services.
http://www.urbangoods.com/
_____________________________________________

o Web Publishing Automation Services Firm Closes Seed Round

NEW YORK -- PanaSite Software, which provides automation
services for Web publishing, said it raised an undisclosed
amount in its seed round of funding. Investors in
the round included Hudson Ventures, founder of Lakota
Investment Group Carl Wolf, Mary Beazley of USA.net,
and several investors from Salomon Smith Barney.
Mr. Wolf will take a seat on the company's board
of directors. The company said the funds will be
used for launching its new Web-based content management
service UpdateThis.com.
http://www.panasite.com/
_____________________________________________

o $40 Million Third Round for Optical Network Equipment Firm

CHELMSFORD, Mass. -- Astral Point Communications,
which develops technology for optical networking
equipment, said it raised $40 million in its third
round of venture funding. This latest round brings
the company's total funding to $73 million. New
investor Bowman Capital led the round, which included
other new investor Essex Investment Management and
previous investors New Enterprise Associates, One
Liberty Ventures, and Sprout Group. The company
will use the funds for marketing, company expansion,
and product development.
http://www.astralpoint.com/
_____________________________________________

o Brecis Communications Gets $20.5 Million

SAN JOSE, Calif. -- Brecis Communications, a company
developing technology that enables the mass deployment
of integrated voice, video, and data services over
a variety of broadband technologies and wide area
network architectures, said it raised $20.5 million
in funding.   Investors included Norwest Venture
Partners, Charter Venture Partners, InterWest Partners,
and Sequoia Capital. Brecis will use the funds for
product development, marketing, sales, and manufacturing.
http://www.brecis.com/
_____________________________________________

o European Incubator, Protege, Secures $45 Million Round Two

LONDON -- Protege, a European Internet incubator,
said it raised $45 million in second round financing.
Partech International, American Express, Bridgepoint
Capital (previously NatWest Equity Partners), XDL
Intervest, and Vulcan Ventures contributed. The
investment will be used to develop the Protege Group's
core businesses: Virtual Management, which accelerates
the entry of U.S. Internet businesses into Europe;
Citria, which implements e-business services for
companies; and iCocoon, which builds European Internet
businesses.
http://www.protege.co.uk/
_____________________________________________

o Microprocessor Firm ARC Cores Gets $50 Million in New Funds

LONDON -- ARC Cores, which develops microprocessors,
said it raised $50 million in its latest funding.
The round included investments from Beeson Gregory,
Goldman Sachs, Invesco, Societe Generale, Texas
Instruments, and UBS. Previous investors in the
company include Apax Partners, Cedar, and Nomura.
The most recent investment brings the company's
total funding for the past 16 months to more than
$70 million.
http://www.arccores.com/
_____________________________________________

o Religious Site Beliefnet Raises $20 Million in Second Round

NEW YORK -- Beliefnet.com, an interfaith source
of information, advice, and news that launched its
site in January, said it received $20 million in
a second round of financing. New investor Primus
Venture Partners led the round and was joined by
exisitng investor Highland Capital Partners, as
well as new investors Blue Chip Venture Company,
The Trump Group, and Zero Stage. The company plans
to use the funds for technology development and
to establish commerce partnerships. A representative
from Primus will join Beliefnet.com's board as a
result of the round.
http://www.beliefnet.com/
_____________________________________________

o Web-based Currency Firm Beenz Gets Raises $51.4 Million

NEW YORK -- Beenz.com, developers of a Web-based
currency, said it secured $39.5 million in fourth
round funding.  New investors Kataweb, New World
CyberBase, BayStar Capital, Sycamore Ventures, ING
Barings, and DRW Venture Partners participated in
the funding. Previous investors Apax Partners Funds,
Patricof & Co. Ventures, Hashari Tsushin Partners
II, Viventures Partners, and the French investor
Artemis and Gefinor also invested in the round.
The funding will be used to expand the beenz merchant
and consumer networks, as well as for marketing
and technology development. Beenz.com also said
it raised an additional $11.9 million for funding
its majority held joint ventures in Italy, Greater
China, Japan and Korea. These funds came from Kataweb,
New World CyberBase, Oracle Japan, Softbank e-Commerce
and Hikari Tsushin Partners II.
http://www.beenz.com/
_____________________________________________

o $24 Million Second Round for ASP Eureka Broadband

NEW YORK -- Eureka Broadband, an ASP that provides
business customers with broadband network applications
and services, said it raised $24 million in second
round funding. Previous investor Spectrum Equity
Investors and new investor CB Richard Ellis Investors
were the primary investors in the round. Previous
investor AT&T Ventures, along with several undisclosed
institutional and individual investors, also contributed
to the financing. The company's services include
broadband Internet access, IT outsourcing, and data
services. The company, which plans to use the funding
for expansion, operates in eight markets: New York,
Los Angeles, Philadelphia, Baltimore, Washington,
DC, and South Florida.
http://www.eurekabroadband.com/
_____________________________________________

o Administrator for Online Marketplaces Gets $6.7 Million

BRAINTREE, Mass. -- EquipNet, which provides businesses
with internal and external Internet-based asset
redeployment services and administers Web marketplaces
in a variety of industries, said it raised $6.675
million in funding. The funding was led by the Orchard
Capital Group with NETInvest, Quadra Invest, and
the Federal Machinery and Equipment Company participating.
The company will use the funding to expand into
new vertical markets, hire personnel, and for marketing.
EquipNet has created marketplaces for used equipment
in the pharmaceutical, food and beverage, and chemical
industries.
http://www.equipnetdirect.com/
_____________________________________________

o DSL Firm AccessLan Communications Raises $35 Million Round

ATLANTA -- AccessLan Communications, a developer
and supplier of DSL equipment and services, said
it raised $35 million in its most recent round of
funding. The round was led by new investor BancBoston
Ventures and included investments from previous
investors Accel Partners, Berkeley International
Capital, Highland Capital, Sequoia Capital, and
Tudor Private Equity Fund. AccessLan will use the
funds to accelerate the launch of two products for
streaming audio and video, and expansion of its
sales and marketing efforts.
http://www.accesslan.com/
_____________________________________________

o E-Security Software Company Gets $9 Million Second Round

OTTAWA, Ontario -- Kyberpass, a provider of electronic
security software, said it secured CDN $13 million
($8.8 million) in its second round of venture capital
financing. The investment was led by NB Capital
Partners, with participation from Covington Capital.
McLean Watson, the company's original investor,
also contributed funds. The capital will be used
for sales and marketing.
http://www.kyberpass.com/
_____________________________________________

o meVC Invests $7 Million in Endymion Systems

SAN FRANCISCO, Calif. -- meVC Draper Fisher Jurvetson
announced a $7-million investment in Endymion Systems,
an information technology consultancy which provides
business-to-business e-commerce products and services.
The funding will be used to establish national
and international regional branches.
http://www.esicom.com/
_____________________________________________

o Online Job Market Firm Takes $3 Million in its First Round

LOS ANGELES -- Wanted Technologies, a provider of
employment information services for Internet businesses,
said it raised $3 million in its first round of
venture backing. The round was led by Investissement
Desjardins and included Innovatech Quebec/Chaudiere-Appalaches.
The company, which has offices in California and
Quebec, will use the funds for corporate development
and prepare for its next round of funding in the
U.S. Wanted Technologies develops products and services
that allow Internet businesses to manage their own
online career information centers. The company expects
to name its board of directors later this month.
http://www.wantedtech.com/
_____________________________________________

o Optical Micro-Machines Gets $75 Million in Third Round Funds

SAN DIEGO -- Optical Micro-Machines (OMM), an optical
switching company, said it received $75 million
in third round funds. The financing was led by Weston
Presidio Capital, and includes investments from
Atlas Venture, Bessemer Venture Partners, Rho Management, 
and Sevin Rosen Venture Partners. OMM has raised
$120 million since it was founded in 1997. The company
expects to use the funds to move to a new facility,
for hiring, and other purposes.
http://www.omminc.com/
_____________________________________________

o Report: SupplyForce.com Raises $52 Million in Second Round

NEW YORK -- SupplyForce.com, a business-to-business
construction and industrial site for independent
local and regional distributors, plans to announce
today that it raised $52 million in second-round
funding, according to The Wall Street Journal. Led
by Crosslink Capital, the round also included Patricof
& Co. Ventures, Comcast Interactive Capital, and
Katalyst Venture Partners. SupplyForce.com's distributors,
which are equity investors in the King of Prussia,
Pa.-based company, have also participated in the
round, along with several undisclosed manufacturers.
http://www.supplyforce.com/
_____________________________________________

o Zack Network Receives Investment, Names New Board Members

SAN MATEO, Calif. -- Zack Network, developer of
technology that provides users with contextual information
while they browse or shop on the Internet, said
it received $1.5 million in an investment from new
investor Sienna Holdings. Mark Balbanian, principal
of Sienna, will join the company's board of directors
as a result of the funding. The primary investor
in Zack's first round was Bertelsmann Ventures,
the venture arm of Bertelsmann AG. The company expects
to close its second round of financing sometime
this summer.
http://www.myzack.com/
_____________________________________________

o CyberStarts Invests $5 Million in Online Insurance Provider

ATLANTA -- CyberASP, which will provide online property
and casualty insurance, received a $5 million investment
from CyberStarts, according to the company. CyberASP
provides insurance clients with real-time Web-based
services such as document imaging, storage and management,
and workflow and business process flow that aim
to increase the speed and accuracy of the claims
process. The company will use the money from the
funding to support its planned launch in August.
Cyberstarts president, Ashish Bahl, will take a
seat on the CyberASP board of directors.
Telephone 404-365-6191.
_____________________________________________

o E-Learning Company gForce Gets $16.5 Million Third Round

SAN JOSE, Calif. -- gForce Systems, a company providing
electronic learning portal systems, said it received
$16.5 million in third round funds. Investors in
this round include Aragon Ventures, The Entrepreneurs
Fund II, Foundation Capital, Intel Capital, and
Vencraft. The proceeds will be used for product
development and to expand the company's operational
infrastructure.
http://www.gforcesystems.com/
_____________________________________________

o Free Domain Name Firm Namezero Raises $6.8 Million Series B

LOS GATOS, Calif. -- Namezero.com, which provides
free domain names and domain name POP e-mail, said
it raised $6.8 million in its Series B funding.
The round was led by previous investor WaldenVC
and included investments from previous investors
Arcadian Venture Partners and Whitman Capital. The
company said it will use the funding to manage its
membership growth. Phil Sanderson, a general partner
with WaldenVC, will take a seat on the company's
board of directors.
http://www.namezero.com/
_____________________________________________

o Music Portal Site Net4Music Raises $16 Million Third Round

NEW YORK -- Net4Music, which operates a Web portal
allowing musicians to download music, said it raised
$16 million in its third round of funding. New investor
Rothschild Asset Management led the round, which
included other new investors BancBoston Capital;
EDB Venture; Genevest; MC ITE, a subsidiary of Mitsubishi;
Mitiska Net Fund Europe; Mitsubishi; Turenne Capital
Partenaires; and individuals. Previous investors
contributing funds to the round included PLS Venture
Capital Partners, Robertsau Investissement, funds
managed by SGAM, and Viventures. The company will
use the funds to acquire new technology, develop
its Web site, finance data entry, and for marketing.
Net4Music licenses digital distribution rights to
music titles and provides downloads of sheet music.
http://www.net4music.com/
_____________________________________________

o Breakthrough Software Completes $8 Million in Second Round

SAN JOSE, Calif. -- Electronic commerce software
company Breakthrough Software said it raised $8
million in its second round of financing. Alignment
Capital and Wand Partners participated in the round.
The company plans to use the funding for research
and development, and hiring staff. Breakthrough's
software is targeted at small and medium-sized businesses.
http://www.breakthroughsoftware.com/
_____________________________________________

o Content Filter Firm Sageware Gets $13.5 Million Third Round

MOUNTAIN VIEW, Calif. -- Sageware, a provider of
automatic categorization and content filtering services,
said it raised $13.5 million in a third round of
financing led by new investor H&Q Asia Pacific with
new investors Core Pacific and WK Technology contributing.
Previous investor Capital Plus also participated
in the round. The funds will be used for global expansion.
http://www.sageware.com/
_____________________________________________

o Design Automation Software Firm Gets $7 Million Third Round

SAN JOSE, Calif. -- C Level Design, a developer
of system-level design automation software, said
it raised a $7 million third round of funding from
new investors Altera and Intel Capital and returning
investors Band of Angels Fund and Sofinnova Ventures.
The company will use the funding for research and
development, and field sales.
http://www.cleveldesign.com/
_____________________________________________

o Imperial Bank Invests $1.5 Million in Tonic Software

AUSTIN, Texas -- Imperial Bank's emerging growth
division said it invested $1.5 million in Tonic
Software, a software company based here. The company,
which develops Web application assessment products,
will use the funds for equipment financing, working
capital, and letters of credit. In March, the company
received $5 million in its first round of funding
from Sevin Rosen Funds.
http://www.tonicsoftware.com/
_____________________________________________

o Norkom Technologies Raises $6 Million in Third Round

BOSTON -- Software company Norkom Technologies said
it received $6 million in a third financing round.
New investors Hibernia Capital Partners, Independent
Newspapers Ireland Ltd., and existing investors
the Reihill family, along with new individual investor
Denis O'Brien, participated in the round. The company
plans to expand into the U.S. market with the funding.
Denis O'Brien and Gavin O'Reilly, of Independent
News & Media plc, are joining the board as non-executive
members. Norkom provides customer interaction software
to the telecommunications and retail financial services
sectors. Norkom has offices in Belgium, Boston,
Ireland, and Netherlands.
http://www.norkom.com/
_____________________________________________

o SPSS Makes $1 Million Strategic Investment in E.Intelligence

CHICAGO -- Publicly traded forecasting services
company SPSS said it made an equity investment of
$1 million in e.Intelligence, a provider of demand
planning applications and services that aim to help
large and mid-sized companies forecast market demand.
The two companies previously said that e.Intelligence
would incorporate SPSS technology into its business-to-business
planning services. E.Intelligence will use the funds
for sales and marketing, and for development and
integration of technology. E.Intelligence raised
$4.3 million in its first institutional funding
from JMI Equity. The company began as a pilot project
within Information Advantage and was established
as a separate, independent company when Information
Advantage was acquired by Sterling Software.
http://www.eintelligence-inc.com/
_____________________________________________

o Tessera Raises $5 Million in Add-on Mezzanine Funds

SAN JOSE, Calif. -- Tessera, which provides technology
for semiconductor chip-scale packaging, said it
raised an additional $5 million for its mezzanine
round from Equity Group Holdings III and Arbor Company
president D. James Guzy. The company closed an initial
$29.4 million in mezzanine funding in February.
The new funds will support marketing, business development,
technology development, services, and intellectual
property enforcement. The company also said it named
Mr. Guzy to its board of directors. Tessera is also
backed by CSK Venture Capital, Investor AB, Landmark
Partners, LG Electronic, Rambus, and Ticonderoga.
http://www.tessera.com/
_____________________________________________

o Genesys Angelbridge Fund Invests $4 Million in uGetHeard

NEW YORK -- Genesys Angelbridge Fund I said it closed
a $4 million round of financing for uGetHeard.com,
a San Mateo, Calif.-based company that seeks to
automate the process by which corporations and customers
interact. Bruce Judson, management advisor to Genesys
Angelbridge Fund, will join the board. Previous
investors in the company include Crystal Internet
Ventures, IDG Ventures, and Redrock Ventures, as
well as a group of individuals.
http://www.ugetheard.com/
_____________________________________________

o Residential Gateway Firm Closes $10 Million Fourth Round

RENO, Nev. -- ShareGate, which develops residential
gateways systems for broadband services, said it
received $10 million in a fourth round funding led
by new investor Blueprint Ventures with new investors
Advent International and Amtech participating. Bart
Schachter, general partner at Blueprint Ventures,
was added to the company's board of directors, which
now stands at four. The company will use the funds
for product development.
http://www.sharegate.com/
_____________________________________________

o $2.5 Million Third Round for Voice Recognition Software Firm

TROY, Mich. -- Clarity, a provider of software products
for voice activated telecommunications and human
to machine interfaces, said it completed its third
round of venture funding. Overall, the company received
$2.5 million in the round. Duchossois TECnology
Partners provided the financing. The company is
also backed by Sloan Ventures.
http:// www.clarityco.com/

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

o govWorks Forms E-Government Subsidiary for Latin America

NEW YORK -- GovWorks, which provides Internet services
that facilitate interactions between government
agencies, citizens, and businesses, said it has
formed govWorks Latin America, a joint venture with
the Argentine firm Consultora Tecnologica SA (Cotesa),
a Buenos Aires-based provider of information technology
strategy and integration services. GovWorks has
a majority stake in the subsidiary, which is based
in Bermuda and has headquarters in New York and
Miami. GovWorks Latin America is raising between
$15 million and $20 million in first round financing
from venture funds and strategic partners, and expects
to close the round within six weeks. Daniel Castillo,
president of Cotesa, is interim chief executive
officer of govWorks Latin America, which has established
Web sites for governments in Argentina, Brazil,
and Colombia. The company plans to launch sites
in Chile and Mexico in the next 60 days and is considering
expansion to other companies, including Uruguay
and Costa Rica, by year's end. The govWorks platform
enables governments and agencies at the national,
regional, and local levels to provide businesses
and individual citizens with information and services,
such as answers to frequently asked questions, and
directories and contact information for government
officials. The platform also enables users to, for
example, renew business licenses, pay fines, register
complaints, or search for government jobs. In addition,
govWorks can provide governments with procurement
and auctioning services. The company charges governments
a membership and licensing fee, on the order of
$5,000 to $15,000 per month, and other fees or commissions
depending on the services used. In April, govWorks
raised $39.2 million in third round funding. The
company's backers include American Management Systems,
Global Bridge Ventures, Hearst New Media, executives
of Kohlberg Kravis Roberts, Mayfield Fund, Metropolis
Ventures, New York City Investment Fund, Safra Group,
Sapient, and Vignette.
http://www.govworks.com/
http://www.govworks.com.ar/
_____________________________________________

o Children's Content & Marketing Site Tykesville.com Launches

NEW YORK -- Tykesville, which licenses original
children's broadcasting to other Web sites, announced
its launch. Tykesville has offices in New York and
Los Angeles. The company received an undisclosed
investment from the Ayzenberg Group last month.
The Web site is not yet available. Telephone 212-448-1043.
_____________________________________________

o Health and Spirituality Site eSpirituality.com Launches

NEW YORK -- eSpirituality.com, an online site for
health and spirituality products and information,
announced its launch. The company is backed by individual
investors and intends to raise a $5 million to $10
million round later in the summer. The company offers
advice, guidance, and resources on topics such as
mystical traditions, personal empowerment, wellness,
alternative medicine and health, dream analysis,
astrology, angels and reincarnation, and occult
studies. The company's president, founder and CEO,
Tidiani Tall, was previously a fixed income analyst
for Morgan Stanley.
http://www.espirituality.com/
_____________________________________________

o Online Movie Ticketing Firm Fandango Announces Itself

NEW YORK -- A new online movie ticketing and entertainment
company announced itself and said it has chosen
Fandango as its name. The company will provide movie-related
content including showtimes, trailers, and reviews.
The company expects to launch a test pilot of its
site within the next several weeks and a full launch
later this summer. The company's investors include
Accretive Technology Partners and General Atlantic
Partners. Telephone 212-371-5999.

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

o Bricsnet to Acquire E-Commerce Product Provider Viscomm

WASHINGTON -- Bricsnet, a publicly traded provider
of Internet services for the building industry,
said it intends to acquire Viscomm, which provides
information management systems to the architectural,
engineering, and construction industries. The acquisition
will be made through the exchange of an undisclosed
number of shares. Viscomm will be absorbed into
Bricsnet and expects to retain all of its employees.
Viscomm is backed by Access Technology Partners, 
Ironwood Capital, and Technology Partners.
http://www.viscomm.com/
_____________________________________________

o Canon Communications Acquires Online Supplier Database

LOS ANGELES -- Canon Communications, which operates
more than 20 Web sites covering a number of industries,
said it acquired emicatalog.com, an online supplier
database formerly owned and operated by consulting
firms Kimmel Gerke Associates and Conway Technology
Associates. The terms of the deal were not disclosed.
Canon Communications, a publisher, tradeshow producer,
and digital media company, covers a host of technology
markets, including the medical device, electronics,
semiconductor fabrication, and injection molding
industries. Canon Communications is a portfolio
company of VS&A Communications Partners II.
http://www.cancom.com/
_____________________________________________

o Original Media Buys Financial Network, FallingShort.com

PALM SPRINGS, Calif. -- Original Media said it is
in the final stage of acquiring a FallingShort.com,
an online financial network. Original Media plans
to integrate FallingShort.com into the financial
Web sites it owns and operates. FallingShort.com
is backed by individual investors.
http://www.fallingshort.com/

======= New Directors =======

o Marketing Software Developer Names Cisco Exec to Board

BURLINGTON, Mass. -- Revenio, a developer of automated
marketing software, said it named Dan Keshian to
a new seat on its board of directors. Mr. Keshian,
currently Cisco Systems' vice president and general
manager, formerly served as president and CEO of
WebLine Communications and previously was president
of Avid Technology. The company's board is comprised
of its founder and CEO, Andrew Payne, and representatives
from investors Matrix Partners and Charles River
Ventures. The company's backers also include Comdisco,
Lighthouse Capital, and Silicon Valley Bank.
http://www.revenio.com/
_____________________________________________

o Telicor Names Cisco Executive to Board

SEATTLE -- Telicor, which provides telecommunications
management services to mid-sized companies, said
it named Michael Frendo, senior director of Cisco
Systems' technology center, to its board of directors.
The company recently closed a $7.5-million first
round co-led by Guide Ventures and Redleaf Group.
http://www.telicor.com/
_____________________________________________

o Optical Firm Kestrel Solutions Names Brocade CEO to Board

MOUNTAIN VIEW, Calif. -- Kestrel Solutions, which
develops optical modulation-based telecom transmission
products, said it appointed Greg Reyes to its board
of directors. Mr. Reyes is the president and CEO
of Brocade Communications Systems. With his appointment
the total number of board members is eight. In January,
the company received $105 million in its fourth
round of funding led by Credit Suisse First Boston,
with Photonics Fund also participating. The company
is also backed by Advanced Technology Ventures,
Bank America Ventures, Carlyle Group, Information
technology Ventures, Polaris Ventures, Spectrum
Equity, and Worldview Technology Ventures.
http://www.kestrelsolutions.com/
_____________________________________________

o PC Software Firm DigitalSquare Names Two New Board Members

SCOTTS VALLEY, Calif. -- DigitalSquare, whose technology
enables PC users to "virtually" shop and purchase
software titles for their computers, said it named
Roger Porter, Harvard University's IBM Professor
of Business and Government, and J. Alan Lindauer,
president of Waterside Capital, to its board of
directors. This brings the board total to five members.
Earlier this week, the company named Stephen Winters
as its first president and COO. DigitalSquare has
raised $6.5 million in two rounds of financing from
Ensign Peak, Mooroolbark Investments, and Waterside
Capital. The company's system is embedded into new
computers and consumers can then use the technology
to buy software titles which are already resident
on their computer, so there is no downloading involved.
Users can try the software and buy the products
they want with a secure credit card transaction
over the Internet.
http://www.digitalsquare.com/
_____________________________________________

o Human Resources Portal Adds Business Consultant to Board

TAMPA, Fla. -- GlobalAxxess.com, which operates
a portal that provides human resources services
to businesses, said it named Kenneth G. Buffin,
Ph.D., to its board of directors. Dr. Buffin is
a business consultant and has worked as an advisor
to the United Nations, World Bank, and International
Monetary Fund. He serves on committees relevant
to the actuarial profession and works with issues
including retirement policy, social security, and
the trends of consolidation in the financial services
industry. GlobalAxxess.com recently raised its first
round of venture funding from Silicon Valley Internet
Capital.  Telephone 1-800-493-4490.

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

o Internet Storage Company 3Ware Names New President & CEO

PALO ALTO, Calif. -- 3ware, a company that designs
storage technology for Internet businesses, said
it named Beau Vrolyk as president and CEO. He comes
to the company from Silicon Graphics, where he was
a senior vice president. 3Ware is backed by VantagePoint
Venture Partners,  New Enterprise Associates, Selby
Venture Partners, and individual investors.
http://www.3ware.com/
_____________________________________________

o Online Retail Partners Names Investcorp Exec as New CEO

NEW YORK -- Online Retail Partners (ORP), a firm
that helps traditional retailers establish e-commerce
operations, said it named Charles Philippin as its
new chief executive officer. He replaces Henry Nasella,
company founder, who will remain as chairman. Mr.
Philippin joins ORP from Investcorp, where he directed
transactions and was a member of the global management
committee. Last year, Online Retail Partners received
$62 million in a first-round funding from Comcast
Interactive Capital, Global Retail Partners, Oak
Investment Partners, Pequot Private Equity, and
Ramsey Beirne Associates.
http://www.onlineretailpartners.com/
_____________________________________________

o Promotional Material Provider Logowire Names Top Execs

CAMBRIDGE, Mass. -- Logowire, which helps corporate
customers design and order branded promotional items,
said it named its chief executive officer and president.
Samish Kumar, the company's chief executive officer,
formerly served as director of international equity
for Warburg, Dylan, Reed & Co. Eric Hoagland, the
company's president, was the co-owner of the Boston
Shirt Company. The company is backed by individual
investors and raised $2 million in its Series A
funding.
http://www.logowire.com/
_____________________________________________

o Risk Management Firm OperationalRisk Names First President

NEW YORK -- OperationalRisk.com, a provider of Web-based
operational risk management assistance, said it
named Everett Diggs as its first president. Mr.
Diggs joins the company from Plus Integration Business
Solutions, an IT consulting and software firm, where
he served as president. OperationalRisk.com has
received financing from Pyramid Ventures, a subsidiary
of Deutsche Bank. OperationalRisk.com's products
are designed to help executives identify, measure,
analyze, and mitigate operational risks.
http://www.operationalrisk.com/

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

o Q Funding Launches New Dallas-Based Incubator

DALLAS -- QSpring, a venture of the $4 billion-asset
investment firm Q Funding, said it opened a 21,000
square foot Internet incubator in Dallas. The incubator
provides data and communication networks, access
to Q Funding venture capital, office space, mentoring,
and other services. The incubator takes a 10% cut
in its portfolio companies and does not request
board seats. The company recently incubated Handango.com,
a handheld equipment and software portal.
http://www.qspring.com/

======= VC Personnel =======

o B2B Investor DigitalVentures Names New Managing Director

SAN FRANCISCO -- DigitalVentures, which invests
in business-to-business Internet companies, said
Mike Seversen joined DigitalVentures as managing
director. Prior to joining DigitalVentures, Mr.
Seversen managed the Riverside Company's San Francisco
office. DigitalVentures recently launched DigitalVentures
Asia, based in Hong Kong, to develop Internet technologies
and start-up companies in Asia.
http://www.digitalventures.com/
_____________________________________________

o Bright Station Names Executive of Internet Venture Division

LONDON -- Bright Station, a publicly traded Internet
services and  commerce company, said it named Robert
Lomnitz as the first chief executive of its Internet
Ventures division (IVD). Mr. Lomnitz was most recently
director of Internet investments with Baltic Asset
Management. IVD recently launched and will provide
investment, technology assets, and management services
to high-tech and Internet startups.
http://www.brightstation.com/
_____________________________________________

o LaunchCenter 39 Names Ex-boo.com Director General Manager

NEW YORK -- LaunchCenter 39, a full-service Internet
incubator with headquarters here, said it named
Pepper Evans as general manager of partner companies.
Ms. Evans recently served as managing director of
global markets at boo.com, the failed online retailer.
http://www.lc39.com/

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