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


VENTURE 
MARKET 
SUMMARY 

	Even as investments slow, top VC firms are still out raising more capital. VentureWire has learned that RRE Ventures, co-founded by James D. Robinson III, the former chairman and CEO of American Express, plans to close $200 million to $250 million for its latest fund by the end of the year. The firm also added Rich McGinn, former Lucent CEO, as an adviser. And Applied Materials remains undaunted by the recent difficulties of corporate investment units. The semiconductor firm plans to set up a venture capital fund to invest in new chip technologies.

Eleven companies did manage to raise nearly $125 million to close last week. Napster, which recently cut 15% of its staff, got a reported $25 million in additional financing from its prime benefactor, Bertelsmann. Also topping the list were mobile firm, Flarion Technologies, which pulled in $45 million and digital image sensor maker, Pixim, which got $16.5 million. 

With the tough times investment banks are facing, it's no surprise that LabMorgan, a technology investment unit of JPMorgan Chase, is adjusting to the chilly investment climate. JPMorgan installed a new chief, while cutting staff and tightening its investment criteria.	


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How to Get Ready Today to Get Bought Tomorrow

Mergers and acquisitions will pick up again, perhaps
before IPOs do, and few know more about preparing for
such an exit strategy than Matt L'Heureux,
Steve Smith, and Les Vadasz. Currently advising HP on
its $21 billion takeover of Compaq, Matt heads Goldman's
worldwide technology M&A. Steve built Broadview's
Silicon Valley business. Les, head of Intel Capital,
runs one of the world's most extensive corporate
development and acquisition programs. You'd be hard-
pressed to find professionals better qualified to tell
you how to find the right corporate partner and make
the relationship work. For straight talk from the voices
of authority, register today.

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

	http://events.venturewire.com/summit/default.asp <http://venturewire.com/ads/ad.asp?id=1468>
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VENTUREWIRE INDEX <http://venturewire.com/index.asp> VentureWire Index <http://venturewire.com/index.asp>
487.3   -1.28% 	
NOTABLE DEALS


RRE to Close More Than $200M, Adds Richard McGinn to Team	  mail <http://alert.venturewire.com/o_mailer.asp?sid=QJIJMNLNII>  	
NEW YORK -- RRE Ventures, a venture capital firm that invests in early-stage companies in e-commerce, software, and communications, expects to close $200 million to $250 million for its third fund by year's end, founding general partner James Robinson IV told VentureWire. The firm has also appointed former Lucent Technologies CEO, Richard McGinn, as senior adviser. [more.. <http://professional.venturewire.com/prostory.asp>]
<http://www.rre.com> 	

Interface Technology Firm Flarion Lands $45 Million Series B	  mail <http://alert.venturewire.com/o_mailer.asp?sid=HHQNMPLNII>  	
BEDMINSTER, N.J. -- Flarion Technologies, a maker of interface technology for Internet Protocol-based mobile broadband networks, is expected to announce that it has received $45 Million in Series B financing. [more.. <http://professional.venturewire.com/prostory.asp>]
<http://www.flarion.com> 	

Napster Lands More Funding from Bertelsmann	  mail <http://alert.venturewire.com/o_mailer.asp?sid=NOKOLLLNII>  	
MOUNTAIN VIEW, CALIF. -- Napster, an online music swapping service, said it received an undislcosed amount of funding from previous investor Bertelsmann. Last year Napster received a $60-million loan from the company that may convert to equity. [more.. <http://professional.venturewire.com/prostory.asp>]
<http://www.napster.com> 	

Semiconductor Firm Applied Materials Creates Venture Fund	  mail <http://alert.venturewire.com/o_mailer.asp?sid=NMLIHQKNII>  	
SANTA CLARA, CALIF. -- Applied Materials, a publicly traded semiconductor company, said it has created a venture capital fund, Applied Materials Ventures I. [more.. <http://professional.venturewire.com/prostory.asp>]
<http://www.appliedvc.com> 	



Infrastructure Software Firm iScale Gets $6 Million Series A	  mail <http://alert.venturewire.com/o_mailer.asp?sid=HHIJQLKNII>  	
MOUNTAIN VIEW, CALIF. -- iScale, a provider of manageable content networking infrastructure software, said it received $6 million in its first round of funding. [more.. <http://professional.venturewire.com/prostory.asp>]
<http://www.iscaletech.com> 	

Digital Image Sensor Firm Pixim Closes $16.5M Series C	  mail <http://alert.venturewire.com/o_mailer.asp?sid=ILNJLJLNII>  	
MOUNTAIN VIEW, CALIF. -- Pixim, a fabless semiconductor company that produces digital image sensors for digital cameras and other devices, is expected to announce the closing of $16.5 million in Series C financing. New funds will be used for product development, marketing, and sales. [more.. <http://professional.venturewire.com/prostory.asp>]
<http://www.pixim.com> 	

Health & Safety Regulation Site Finatus Nabs $2.4M Series A	  mail <http://alert.venturewire.com/o_mailer.asp?sid=QLLOPJKNII>  	
PORTLAND, ORE. -- Finatus, which operates an environmental, health, and safety regulatory Web site for small and mid-sized businesses, said it raised $2.4 million in its Series A. [more.. <http://professional.venturewire.com/prostory.asp>]
<http://www.finatus.com> 	

Fabless Semiconductor Firm Xemics Closes $6M Round Three	  mail <http://alert.venturewire.com/o_mailer.asp?sid=LJQOKHLNII>  	
NEUCHATEL, SWITZERLAND -- Xemics, a developer of fabless semiconductors for short-range wireless connectivity, said it has closed $6 million in a third round of funding. New money will be used for product development and marketing in the U.S. and the Far East. [more.. <http://professional.venturewire.com/prostory.asp>]
<http://www.xemics.ch> 	


Unlocking the Promise of Good Science:
The Investor's Perspective

Good science doesn't always equate with good investment
opportunity. Generations of investors have been burned
and rewarded for taking risks on the potential of early-
stage therapies.  The drug discovery process is a complex
combination of tests and hurdles for young companies.
Where are the signposts for investors?  James Reddoch of
Banc of America Securities will moderate a special
roundtable dedicated to drug research and discovery at
this year's Healthcare Outlook Conference.  The experience
of the panelists reflects the complex considerations of
modern research and development.  Mr. Reddoch is joined by
Michael Grey of Structural Genomix, Daniel Janney of Alta
Partners, Gary Zweiger of Agilent Technologies and Lowell
Harmison, Former Deputy Assistant Secretary for Health,
Department of Health and Human Services.

Healthcare Outlook, January 22, 2002
San Francisco Airport Marriott, Burlingame, CA

http://www.healthcareoutlook.com <http://venturewire.com/ads/ad.asp?id=1469>

JPMorgan Chase's LabMorgan Names Gallo as New Leader	  mail <http://alert.venturewire.com/o_mailer.asp?sid=NQLNNJMNII>  	
NEW YORK -- LabMorgan, a unit of JPMorgan Chase & Co, which invests in technology startups, said Dennis O'Leary, executive vice president of JPMorgan Chase & Co. and co-head of LabMorgan, will join JP Morgan's consumer banking unit. Martha Gallo, managing director, will now run the unit. Mr. O'Leary said that, given the market conditions, LabMorgan is becoming increasingly selective of outside investments. [more.. <http://professional.venturewire.com/prostory.asp>]
<http://www.labmorgan.com> 	

Proficient Networks	  mail <http://alert.venturewire.com/o_mailer.asp?sid=LPPHIKLNII>  	
NEW YORK -- An item on Friday's VentureWire about the launch of Proficient Networks misspelled the surname of the company's CEO. He is Allan Leinwand, not Leiwand. [more.. <http://professional.venturewire.com/prostory.asp>]
	



Pervasive Computing Outlook

As we enter the era of digital anything, companies
are vying to capitalize on the market growth created
by increasingly portable and ubiquitous computing power.
The uneven economy has not deterred the focus on new
technologies, or the related products and services that
are quickly emerging. Atheros, Embrace, Phototablet,
and XDegrees are just a handful of the companies that
will share their plans to use real-time, wireless
communication to create more intelligent, connected
business opportunities. Meet the companies, investors,
and executives best positioned to spearhead the
pervasive vision. Register now and SAVE $300.

Pervasive Computing Outlook
December 4 & 5, 2001
San Francisco Airport Marriott

	http://www.pervasivecomputingoutlook.com/register.asp <http://venturewire.com/ads/ad.asp?id=1470>

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