======================================================
        VENTUREWIRE --- Wednesday, September 6, 2000
======================================================
           Private Company Business News
------ Published Daily by Technologic Partners -------
           http://technologicpartners.com
======================================================

Top Stories:

o Ridgewood Capital to Raise $400 Million Venture Capital Fund
o Network Telephone Dials Up $256 Million in Financing
o TeraBeam Founder Sells Stock, Gives Up Chairman Post
o Numerical to Buy Cadabra Design Automation for $130 Million
o CityReach International Raises $155 Million Third Round
o Report: Pop.com Closes Following Failed Acquisition Talks

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

Spend an afternoon with VC Heidi Roizen.

The Montclare Web Team invites you to join us to hear
SOFTBANK VC Heidi Roizen talk about the 'new' New
Economy at the Montclare Speaker Series, Sept. 13.

http://www.montclare.com/speakerseries

Want to improve your Web site? Ask the experts!
Meet us tonight at Zibibbo, in Palo Alto:

http://www.montclare.com/webteam

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

Also in This Issue:

     New Money:
o MEMS Manufacturer AMS Secures $8 Million in Series A Funding
o Millennia Vision Raises $27 Million In First Funding Round
o Software Developer 2Ce Raises $2.75 Million in Series A
o Travel Search Engine TripAdvisor Gets $2 Million First Round
o U.K. Newspaper Software Firm Raises $3 Million First Round
o Waste Management ASP Envectra Has $4.9 Million Seed Round
o B2B Wireless ASP Terion Announces $50 Million Funding
o Open-Source Firm Wasabi Systems Closes $500,000 Round One
o Science Communications Secures Pre-Series A Funding
o Airslide Systems Closes $35 Million Second Round of Funding
o B2B Service Firm SupplySolutions Has $20 Million Round Two
o Behavioral Technology Firm Gets $11.2 Million in Series B
o Communications Firm Brainshark Has $14 Million Second Round
o Evant Solutions Raises $12 Million in Second Round
o French Mobile Location Service Provider Raises $15.1 Million
o Image Sensor Tech Firm Y Media Gets $7.5 Million Series B
o Net Advertising Tech Firm iWeb Closes $8.6 Million Series B
o SpinCircuit and Avet Form Partnership, Avnet Takes Stake
o TimesTen Performance Software Closes $21.5 Million Mezzanine
o Advent Leads $4 Million Round for Shipping Site NETlogistiK
o ArrayComm Raises $34 Million in Series F Funding Round
o B2B Software Firm Sienna Secures $4 Million in Second Round
o Deutsche Bank Takes Stake in Securities Software Firm Lewtan
o Mobile Platform Firm Synchrologic Gets $22 Million D Round
o ASP Reasoning Gets $15 Million Series D

     New Products:
o Online College Student Advisor PureAdvice.com Launches
o Universal Wireless Infrastructure Firm Sentica Launches
o Christianity.com Launches, Ex-Pepperdine President Named CEO
o Incubator Brainspark Launches Digital Design Firm EC1 Media

     New Deals:
o Failure of Investment Talks Leads to Clickmango.com Closure
o Scour Lays Off 52 Following Dissolution of Investment Talks
o Ad Firms OneMediaPlace and iMediaPoint Enter Alliance
o E-Security Firm iDefense in $10 Million Venture with Itochu
o Silicon Peak Takes Stake in Information Firm for Physicians

     M&A:
o Intersil Buys Wireless Component Firm SiCOM for $196 Million
o ICG Increases Stake in PaperExchange.com from 20% to 83%
o Network Appliance to Acquire WebManage for $75 Million
o Heyde Group Acquires European VC Firm Value Partner

     New Directors:
o Acta Technology Adds Network Appliance CFO to Board
o DMR Consulting Exec Joins Software Firm infoShark's Board
o incuVest Names Merck Division Senior VP to Board
o Irish XML App Firm Vordel Adds Corporate Financier to Board
o RedEnvelope Names Prophet Brand CEO to Its Board

     New People:
o Net Video Firm Vividon Makes Ex-Vignette VP President, CEO
o Former Motorola Executive is New CEO for Foxcom Wireless
o MEI Software Systems Promotes VP to President and Acting CEO

     VC Fund News:
o Brazil's Banco Pactual Launches BRR $75 Million Tech Fund
o KPN and VNU Launch $30 Million Fund For European Tech Firms
o Draper Laboratory Launches $15 Million Venture Subsidiary

     VC Personnel:
o High Tech Venture Firm YankeeTek Ventures Gets New Partner
o NIF Ventures Promotes Partner to Run Silicon Valley Office

     VW Corrections:
o Rtime

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

Healthcare Outlook:
Where Medicine Meets the Internet

Will e-health complement traditional healthcare systems
or create new markets?  Which models will survive?

Take the first look at the companies that will redefine the
way healthcare is delivered.  New technologies, new ideas
and future market leaders.

For more information and registration,
Visit: http://tpsite.com/tp/conf/ho2000/default.html


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

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

o Ridgewood Capital to Raise $400 Million Venture Capital Fund

RIDGEWOOD, N.J. -- Ridgewood Capital said it will
begin raising money for a new $400 million venture
capital fund starting in October. The fund, known
as Ridgewood Capital Venture Fund III, will focus
on a broad variety of startups, including Internet
infrastructure, software, and business-to-business
e-commerce companies. The fund will invest between
$4 million and $10 million per company, typically
in the Series A round. The firm seeks to own between
15% and 25% of the companies it invests in. Ridgewood's
prior fund, which closed earlier this year, was
capitalized at about $170 million and has funded
about 19 companies to date.
http://www.ridgewoodcapital.com/
_____________________________________________

o Network Telephone Dials Up $256 Million in Financing

PENSACOLA, Fla. -- Network Telephone, a provider
of facilities-based broadband telecommunications
services, said it raised $256 million in its Series
D round of funding. Lehman Brothers led the round,
which included Brown Brothers Harriman & Co., Desai
Capital Management, Spectrum Equity Investors, and
Wind Point Partners. The round comprised $156 million
in cash and a $100 million secured bank line. The
round brings the company's total cash investments
to $204.5 million. Brown Brothers Harriman & Co.
partner Lawrence Tucker; Desai Capital Management
chairman, president, and chief investment officer
Rohit M. Desai; and Thomas E. Darden, managing director
for Wind Point Partners, have all recently joined
the company's board. The company will use the funding
for continued expansion of its facilities-based
networks in the Southeastern U.S. Network Telephone
has also been backed by Onset Ventures.
http://www.networktelephone.net/
_____________________________________________

o TeraBeam Founder Sells Stock, Gives Up Chairman Post

SEATTLE -- TeraBeam Networks, a developer of fiberless
optical technology and services that enable the
delivery of Internet data, said its founder and
chairman Greg Amadon is selling a portion of his
personal stock to previous investor Softbank Venture
Capital in a deal worth $100 million. The company
also said Mr. Amadon will give up the chairman title
to TeraBeam president and CEO Dan Hesse. Mr. Amadon
will not have a title with the company, although
he still remains the company's largest individual
shareholder. As a result of the deal, Softbank Venture
Capital becomes the single largest institutional
shareholder in TeraBeam Networks. The company's
other backers include Capital Research and Management
Group, Fidelity Management & Research, Madrona Investments,
Merrill Lynch IBK Positions, Morgan Stanley Dean
Witter, Oakhill Venture Partners, and T. Rowe Price
Investment Services.
http://www.terabeam.com/
_____________________________________________

o Numerical to Buy Cadabra Design Automation for $130 Million

SAN JOSE, Calif. -- Publicly traded Numerical Technologies,
which provides technology and services for producing
subwavelength integrated circuits, said it plans
to acquire Cadabra Design Automation, a provider
of technology used to create standard cell, semi-custom,
and custom integrated circuits. Numerical will exchange
3.2 million shares, worth about $130 million. Cadabra
will become a wholly owned subsidiary of Numerical.
Faysal Sohail, president and CEO of Cadabra, will
remain president of the Cadabra subsidiary and will
become senior vice president of Numerical. Cadabra's
backers include CMEA Ventures, Synopsys, Access
Technology Partners, and individual investors Andy
Bechtolsheim, co-founder of Sun Microsystems, Atiq
Raza, former president and COO at AMD, Rajeev Madhavan,
co-founder, president and CEO of Magma Design Automation,
and Kurt Keutzer, former CTO and senior vice president
of research at Synopsys.
http://www.cadabradesign.com/
http://www.numeritech.com/
_____________________________________________

o CityReach International Raises $155 Million Third Round

LONDON -- CityReach International, a European provider
of network management and services, said it raised
$155 million in its third round of funding led by
new investor Investcorp. Additional investors in
the round included Morgan Grenfell Private Equity,
Merrill Lynch, and Vulcan Ventures. The company
said the latest round of funding will be used for
the European expansion of the company's operations.
Philippe Costeletos, a principal at Investcorp,
will take a seat on the CityReach board of directors.
The third round investment in CityReach follows
a $46 million round from investors including Battery
Ventures, Chase Capital Partners, and M/C Venture
Partners, who also participated in the latest funding.
http://www.city-reach.com/
_____________________________________________

o Report: Pop.com Closes Following Failed Acquisition Talks

NEW YORK -- Pop.com, the Internet entertainment
site founded by Dreamworks SKG, Imagine Entertainment,
and Vulcan Ventures, will shut down, according to
a report by the Associated Press. A majority of
the company's 80 employees will be laid off by the
end of the week, the report said. The site, which
never launched after a series of delays, had been
discussing the possiblity of an acquisiton by Ifilm.com
but talks fell through at the end of last week.
http://www.dreamworks.com/
http://www.pop.com/

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

o MEMS Manufacturer AMS Secures $8 Million in Series A Funding

SHREWSBURY, Mass. -- Advanced MicroSensors (AMS),
a developer of MEMS and other components for telecommunications,
industrial, and related markets, said it raised
$8 million in its Series A round of funding. Fitel
Technologies, a subsidiary of Japanese company Furukawa
Electric, led the round, which also included Lafe
Holdings. Fitel Technologies will name at least
two members to the company's board of directors.
The company will use the funding for further technology
development. AMS and Fitel have also formed a strategic
partnership under which AMS will provide chip fabrication
to Fitel and both companies will work to develop
MEMS-related products.
http://www.advancedmicrosensors.com/
_____________________________________________

o Millennia Vision Raises $27 Million In First Funding Round

REDWOOD SHORES, Calif. -- Millennia Vision, a provider
of e-commerce services, said it raised $27 million
in its first round of funding. The round was led
by GE Equity and Venture Strategy. Additional investors
included Encore Venture Partners, Phillips Capital
Management, Pagemill Capital, and Starwood Capital
Group. The company said it will use the funding
for global expansion and to continue to develop
application service provider offerings.
http://www.mvsn.com/
_____________________________________________

o Software Developer 2Ce Raises $2.75 Million in Series A

KING OF PRUSSIA, Pa. -- 2Ce, a software and Web
development company, said it completed its Series
A funding round with $2.75 million from individual
investors. 2Ce is developing applications designed
to enable users to view 25% more of their computer
desktops. The company will use the funding for product
and business development. 2Ce is in the process
of raising a Series B round of funding.
http://www.2ce.com/
_____________________________________________

o Travel Search Engine TripAdvisor Gets $2 Million First Round

NEEDHAM, Mass. -- TripAdvisor, a specialized search
engine for travel, said it raised $2 million in
its first round of funding led by OneLiberty Ventures.
The round brings TripAdvisor's total funding to
$3.3 million. The funds will be used to launch tripadvisor.com,
a research tool that will enable consumers to find
travel information on the Web.
http://www.tripadvisor.com/
_____________________________________________

o U.K. Newspaper Software Firm Raises $3 Million First Round

REDDITCH, U.K. -- Parascan Technologies, which develops
workflow software and services for newspaper pre-press
systems, said it raised $3 million in its first
round of funding provided by Quester Capital Management.
The company will use the funding for expansion.
Parascan products and services are designed to streamline
the production of printed publications.
http://www.parascan.co.uk/
_____________________________________________

o Waste Management ASP Envectra Has $4.9 Million Seed Round

DAVIS, Calif. -- Envectra.com, which provides online
hazardous waste management transaction services
and offline logistics services to businesses, said
it secured $4.9 million in a seed round funding
led by Mike Starnes, founder and CEO of trucking
firm MS Carriers. Envectra's ASP service enables
firms to prepare documents online as well as schedule
the transport and disposal of waste. The company
will use the funds to expand its services and pursue
strategic relationships. Envectra also expects to
raise additional funds by the end of the year.
http://www.envectra.com/
_____________________________________________

o B2B Wireless ASP Terion Announces $50 Million Funding

MELBOURNE, Fla. -- Terion, a business-to-business
wireless application service provider that utilizes
two-way wireless communications, said it received
$50 million in funding from SCP Private Equity Partners
II, Northwestern Corp., ING Barings, Crossbow Ventures,
and ACI Capital America Fund. Previous investors
Penske Capital Partners, Delphi Automotive Systems,
Detroit Diesel Corporation, KteCom, HVFM-II, and
Madison Venture also contributed to the round. The
funds will be used to increase production capacity
and for marketing. Terion's patents and other intellectual
properties include digital high-frequency technologies
originally developed under contract by Harris Corp.
as a nationwide backup communication system.
http://www.terion.com/
_____________________________________________

o Open-Source Firm Wasabi Systems Closes $500,000 Round One

NEW YORK -- Wasabi Systems, which develops and supports
open-source NetBSD operating systems, said it raised
just over $500,000 in its first round of funding
from a range of institutional and individual investors.
The company would not disclose the names of its
investors. Wasabi said it will use the proceeds
to fund growth and expand its staff.
http://www.wasabisystems.com/
_____________________________________________

o Science Communications Secures Pre-Series A Funding

HUNTSVILLE, Ala. -- Science Communications, a provider
of e-mail marketing services, said it has secured
an undisclosed amount of funding from ABS Ventures,
an affiliate of Deutsche Bank Alex. Brown. The company
said it would use the funds to expand to international
markets. Science Communications directs online marketing
campaigns and e-commerce through its EmailEngines
technology.
http://www.sciencecommunications.com/
_____________________________________________

o Airslide Systems Closes $35 Million Second Round of Funding

HERZELLA, Israel -- Airslide Systems, which is developing
an IP-based technology for cellular network infrastructures,
said it has closed a $35 million second round of
funding led by investment affiliates of Soros Private
Equity Partners. The round included Anschutz Investment,
KPNQwest, Telecom Italia Mobile, Intel Communications
Fund and first round investors Sequoia Capital Seed
Fund. Airslide said it will use the proceeds for
development, marketing, manufacturing and sales.
Sender Cohen of Soros Private Equity Partners and
Scott Carpenter of Anschutz Investment will join
Airslide's board of directors.
http://www.airslide.com/
_____________________________________________

o B2B Service Firm SupplySolutions Has $20 Million Round Two

NEW YORK -- Donaldson, Lufkin & Jenrette announced
that its venture capital affiliate, the Sprout Group,
has led a $20 million second round investment in
SupplySolution, a provider of Internet-based application
services for the automotive supply industry. Other
investors who participated in the round include
first round investors Enterprise Partners and Sigma
Partners. SupplySolution said it will use the funds
to develop products and service offerings and expand
existing sales and service areas. Rakesh Sood, general
partner at the Sprout Group, has taken a seat on
SupplySolution's board of directors.
http://www.supplysolution.com/
_____________________________________________

o Behavioral Technology Firm Gets $11.2 Million in Series B

HOFFMAN ESTATES, Ill. -- Motivation Online, a developer
of behavioral business systems, said it raised $11.2
million in its first, Series B round of funding.
Edgewater Funds led the round, which included Mesirow
Financial, Prism Opportunity Fund, and Talon Opportunity
Fund. Edgewater Funds partner Brian Thompson and
Mesirow Financial's Dan Howe will join the company's
board of directors. The company will use the funding
to expand its technology development, increase its
sales and marketing efforts, and hire additional
staff. Motivation Online's services are designed
to enable companies to refine business processes
and analyzes the effects of those processes.
http://www.motivationonline.com/
_____________________________________________

o Communications Firm Brainshark Has $14 Million Second Round

BURLINGTON, Mass. -- Brainshark, a provider of a
Web-based communications platform, said it has raised
$14 million in its second round of funding. 3i,
an international venture capital firm, joined repeat
investors OneLiberty Ventures, SI Ventures, Citizens
Capital, and Reach in the round. Brainshark said
it will use the funds to expand its rich-media communications
platform and to enhance its Web-based services.
The company's Web-based communication platforms
allow its customers to create and deliver content
while building a database. An official of 3i is
expected take a seat on Brainshark's board.
http://www.brainshark.com/
_____________________________________________

o Evant Solutions Raises $12 Million in Second Round

SAN FRANCISCO -- Evant Solutions, a provider of
supply-chain services to online companies, said
it raised $12 million in its second round of funding.
Softbank Venture Capital led the round, with participation
from Kline Hawkes & Co. and Bain Capital. Scott
Russell from Softbank and Jay Ferguson from Kline
Hawkes & Co. will join Evant's board.
http://www.evant.net/
_____________________________________________

o French Mobile Location Service Provider Raises $15.1 Million

SOPHIA-ANTIPOLIS, France -- Opteway, a multi-access
mobile location service provider, raised $15.1 million
in its most recent funding round. The round included
investments from Goldman Sachs, Morgan Stanley Dean
Witter, Part'Com, and previous investor 3i. The
company said the funding will be used to support
product launches in the last half of the year and
global expansion through marketing and partnerships.
The company has expanded its staff from 10 to 70
employees after more than a year of operations.
http://www.opteway.com/
_____________________________________________

o Image Sensor Tech Firm Y Media Gets $7.5 Million Series B

LAGUNA HILLS, Calif. -- Y Media, which develops
digital image sensor technology for portable electronic
devices, said it raised $7.5 million in its Series
B funding from previous investors Enterprise Partners,
which led the round, Chase Capital Partners, and
TechFund Capital. The company will use the funding
for mass product production and for intellectual
property development program. The company expects
this round of funding to last it through profitability.
Y Media is relocating its headquarters this month
to Irvine, Calif.
http://www.y-media.com/
_____________________________________________

o Net Advertising Tech Firm iWeb Closes $8.6 Million Series B

NEW YORK -- iWeb, a provider of technology and services
that enable the targeted delivery of advertising
and content via the Internet, said it closed its
Series B round of funding led by Apax Partners.
The ICE Group, a European merchant bank, individual
partners from Hellman & Friedman, a private equity
investment firm, and second round investors Young
& Rubicam all participated in the round.
http://www.iweb.com/
_____________________________________________

o SpinCircuit and Avet Form Partnership, Avnet Takes Stake

SAN JOSE, Calif. -- SpinCircuit, a provider of a
Web-based supply chain for the electronics industry,
and publicly traded Avnet said they formed a strategic
partnership. Avnet and SpinCircuit will provide
component and manufacturing information to engineers
through SpinCircuit. As part of the deal, Avnet
has also acquired an equity stake in SpinCircuit
for an undisclosed amount. The companies have signed
a joint marketing agreement as well. SpinCircuit
is also backed by Cadence Design Systems, Flextronics
International, and Hewlett-Packard.
http://www.spincircuit.com/
_____________________________________________

o TimesTen Performance Software Closes $21.5 Million Mezzanine

MOUNTAIN VIEW, Calif. -- TimesTen Performance Software,
which develops a database that runs from main memory,
said it received $21.5 million round in mezzanine
financing led by new investor Technology Crossover
Ventures with new investors Sun Microsystems and
BEA Systems contributing. Previous investors Intel's
IA-64 Fund, Morgenthaler Ventures, ABS Ventures,
Mayfield Fund, Weiss Peck and Greer Venture Partners,
and Sippl Macdonald Ventures also participated.
The company will use the funds for product development.
http://www.timesten.com/
_____________________________________________

o Advent Leads $4 Million Round for Shipping Site NETlogistiK

MEXICO CITY -- Advent International said it lead
a group of investors in a $4-million round of funding
for NETlogistiK.com, an online logistics marketplace
for the transportation and logistics industry in
Central and South America. Advent contributed $1
million to the round. CarrierPoint, an Atlanta-based
company with which NETlogistiK.com signed an exclusive
software agreement, also holds an equity stake in
the shipping marketplace.
http://www.netlogistik.com/
_____________________________________________

o ArrayComm Raises $34 Million in Series F Funding Round

SAN JOSE, Calif. -- ArrayComm, which develops antenna-based
wireless communications products and services, said
it secured $34 million in its Series F round of
funding. New investor Nomura International led the
round, which included new investors American Century,
Cornerstone Equity Investors, and Sands Brothers
Ventures as well as previous investors Amerindo
Investment Advisors, Ballentine Capital Partners,
and Spinnaker Ventures. Nomura International and
Cornerstone Equity Investors each invested $10 million.
The company said it will appoint one new member
to its board of directors resulting from the round.
The company will use the funding for deploying its
broadband wireless networks and building its telecommunications
applications. ArrayComm has also received investment
from Sony Corporation of America.
http://www.arraycomm.com/
_____________________________________________

o B2B Software Firm Sienna Secures $4 Million in Second Round

SYDNEY, Australia -- Sienna Technologies, a developer
of business-to-business applications, said it raised
$4 million in its second round of funding. Nanyang
Ventures, the fund manager for St. George Bank,
led the round with a $3 million investment. Previous
investor Technology Venture Partners invested the
other $1 million. Nanyang Ventures' Mike Hirshorn
will join the company's board of directors. The
company will use the funding for expansion into
international markets by establishing offices in
Singapore and the U.S. by the end of the year. Sienna
Technologies plans to open an office in Europe in
2001.
http://www.sienna.com.au/
_____________________________________________

o Deutsche Bank Takes Stake in Securities Software Firm Lewtan

NEW YORK -- Lewtan Technologies, a software and
Internet company focused on the asset-backed securities
market, said Deutsche Bank has taken an undisclosed
minority equity stake in the company. The bank's
Corporate Trust & Agency Services business will
develop new applications for financial markets services
with the company. Deutsche Bank will take one seat
on Lewtan's board of directors. Lewtan Technologies
is also backed by Applied Technology Investors and
Little Diamond Enterprises.
http://www.lewtan.com/
_____________________________________________

o Mobile Platform Firm Synchrologic Gets $22 Million D Round

ATLANTA -- Synchrologic, which provides synchronization
platform for managing mobile devices and enabling
access to business data and applications from anywhere,
said it closed a $22 million Series D funding round
led by Chicago-based JK&B Capital. The round also
included Financial Technology Ventures and previous
investors Grotech Capital, Noro-Mosley Partners,
Alliance Technology Ventures, and Boston University's
Community Technology Fund. The company said it will
use the funds to grow and strengthen its market
share. Richard Finkelstein of JK&B Capital will
assume a seat on Synchrologic's board of directors.
http://www.synchrologic.com/
_____________________________________________

o ASP Reasoning Gets $15 Million Series D

MOUNTAIN VIEW, Calif. -- Reasoning, an ASP that
specializes in software modernization, said it secured
$15 million in a Series D funding led by C.E. Unterberg,
Towbin. Aspen Ventures, Novis Ventures, and NIF
Ventures USA also contributed to the round. The
funds will be used for research and development
and infrastructure.
http://www.reasoning.com/

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

o Online College Student Advisor PureAdvice.com Launches

NEW YORK -- PureAdvice.com, a one-on-one online
college admissions and financial aid advice service
for students, announced its launch. Doublespace,
a Silicon Alley-based incubator provided the company
with an undisclosed amount of seed capital. PureAdvice.com,
founded by CEO Michael Lythcott and company president
Steven Ehrlich, has also received funding from Oliver,
Wyman & Co.
http://www.pureadvice.com/
_____________________________________________

o Universal Wireless Infrastructure Firm Sentica Launches

SAN JOSE, Calif. -- Sentica, which provides universal
application-enabling infrastructure for mobile devices,
announced its launch. The company's technology enables
communication between any application and any wireless
 device. Sentica is backed by Athena Technology
Ventures and Tallwood Ventures.
http://www.sentica.com/
_____________________________________________

o Christianity.com Launches, Ex-Pepperdine President Named CEO

HAYWARD, Calif. -- Christianity.com, which will
provide individuals, churches and organizations
with a network of services and tools, announced
its launch. David Davenport, former president of
Pepperdine University for 15 years, will serve as
chief executive officer. Christianity.com, which
will also offer its clients Web site development
and management and Internet marketing and fundraising
services, is backed by Sequoia Capital, Comdisco,
and CBN.
http://www.christianity.com/
_____________________________________________

o Incubator Brainspark Launches Digital Design Firm EC1 Media

LONDON -- Business incubator Brainspark announced
the launch of EC1 Media, a digital production, design,
and consulting agency. Paul Cackett of Brainspark
will head the company's operations. Brainspark has
received backing from Diamond Tech Partners.

http://www.brainspark.com/

======= New Deals =======

o Failure of Investment Talks Leads to Clickmango.com Closure

LONDON -- Clickmango.com, the U.K.-based online
health retailer, said it would close operations
on Sept. 11. The company's Web site will be taken
down the following day. The company said it will
honor all outstanding orders and agreements using
the remainder of its capital to fulfill outstanding
orders. Most of the company's 18 employees will
depart Sept. 8 with a skeleton crew continuing operations
until the end of the month. The company had raised
GBP 3 million from Atlas Ventures and was seeking
additional investments until last week. With the
failure to find new capital the directors decided
to close the site down.
http://www.clickmango.com/
_____________________________________________

o Scour Lays Off 52 Following Dissolution of Investment Talks

LOS ANGELES -- Scour, a broadband entertainment
portal that enables user to trade music and other
media online, said it laid off 52 employees citing
a lack of investment. The company was in negotiations
for its next round of financing but talks stalled
after the Motion Picture Association of America,
the Recording Industry Association of America, and
the National Music Publishers Association filed
a suit against Scour on July 20, claiming copyright
infringement. Scour said potential investors were
concerned about the cost and management distraction
resulting from the legal action. Scour received
previous investments from Michael Ovitz and Yucaipa
Companies.
http://www.scour.com/
_____________________________________________

o Ad Firms OneMediaPlace and iMediaPoint Enter Alliance

NEW YORK -- OneMediaPlace, which provides management
services for advertising online, and iMediaPoint,
which provides a European marketplace for advertising,
said they have entered a strategic alliance. OneMediaPlace
made an undisclosed equity investment in iMediaPoint
as part of the agreement. In addition to the minority
stake, OneMediaPlace will also gain an outlet in
Europe for its services. Through the terms of the
agreement iMediaPoint will be able to market its
advertising services to new media companies in the
U.S. as well as the traditional media it caters
to in Europe. OneMediaPlace is backed by investors
including CMGI @Ventures, Primedia, Liberty Media,
Artemis, Amerindo Investment Advisors, Convergence
Partners, Fayez Sarofim & Co., Geneva Partners,
Lehman Brothers, New Millennium Partners, and Viventures.
http://www.imediapoint.com/
http://www.onemediaplace.com/
_____________________________________________

o E-Security Firm iDefense in $10 Million Venture with Itochu

FAIRFAX, Va. -- iDefense, which provides cyber intelligence
and electronic security services, and Itochu, which
provides business services such as natural resource
development, project financing, retailing, and strategic
investing, said both companies will enter into a
strategic partnership to launch iDefense Japan.
The new venture will have the exclusive technology
license in Japan for iDefense's iAlert cyber-threat
intelligence and can warn its clients in advance
of emerging threats in the Asia-Pacific region.
Itochu will invest approximately $10 million in
the company to support its expansion and development.
iDefense backers also include individual investors.
http://www.itochu.co.jp/
http://www.idefense.com/
_____________________________________________

o Silicon Peak Takes Stake in Information Firm for Physicians

WILLISTON, Vt. -- Silicon Peak, an Internet business
accelerator, said it formed a partnership with Philadelphia-based
based PharmaDetailing.com, which provides Internet
and handheld device-based information on pharmaceutical
and medical products to physicians. As part of the
deal, Silicon Peak will serve as PharmaDetailing.com's
Internet technology team and will provide the company
with technology services, Web site design, technical
infrastructure, and advisory services in exchange
for an undisclosed equity stake.
http://www.pharmadetailing.com/

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

o Intersil Buys Wireless Component Firm SiCOM for $196 Million

SCOTTSDALE, Ariz. -- SiCOM, a provider of modem
semiconductors for broadband wireless communications,
said it was acquired by publicly traded Intersil
Holding in a stock deal worth about $196 million.
Under the terms of the deal, Intersil will buy SiCOM
for about 3.7 million shares. SiCOM's silicon products
and circuit card products are embedded in broadband
satellite and terrestrial microwave wireless network
products. SiCOM's has received funding from Quantum
Partners.
http://www.sicom.com/
_____________________________________________

o ICG Increases Stake in PaperExchange.com from 20% to 83%

WAYNE, Pa. -- Internet Capital Group (ICG) said
it increased its ownership stake in PaperExchange.com,
a marketplace for the pulp and paper industry, from
20% to 83% in exchange for approximately 4.8 million
shares, worth about $187 million. Internet Capital
Group purchased the additional interest from Kraft
Group, which still owns about 10% of the company.
Robert Kraft remains chairman of the PaperExchange.com.
http://www.paperexchange.com/
_____________________________________________

o Network Appliance to Acquire WebManage for $75 Million

SUNNYVALE, Calif. -- Publicly traded data access
service provider Network Appliance said it agreed
to acquire WebManage Technologies, which provides
Web site resource, performance management, reporting,
and analysis services. Network Appliance will make
the acquisition with common stock, assumed options,
and cash for a total of $75 million. WebManage Technologies
is backed by IT Investments Fund and others.
http://www.netapp.com/
http://www.webmanage.com/
_____________________________________________

o Heyde Group Acquires European VC Firm Value Partner

FRANKFURT AM MAIN, Germany -- Heyde, a publicly
traded supplier of information technology consulting,
software development, and systems integration, said
it acquired venture capital firm Value Partner.
Value Partner has approximately $14 million in assets
with an additional $10.6 million in capital commitments
in Germany, the U.K., and Israel. The investment
fund is planning to raise $89 million. The total
assets of the Heyde-controlled investment fund will
be derived from institutional and individual investors
from the U.S. and Germany. Value Partner also holds
a 20% stake in London-based incubator Kick Start
Ventures and a 50% stake in its German subsidiary
Kick Start Ventures Deutschland. The Kick Start
investments have a valuation of $36 million. Axel
Jager serves as managing director of the Value Partner
investment group. The new fund will continue to
invest in the core markets that comprise Heyde's
business financial services, multimedia agencies,
information technology, and telecommunications.
http://www.heyde.com/

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

o Acta Technology Adds Network Appliance CFO to Board

MOUNTAIN VIEW, Calif. -- Acta Technology, which
provides a platform designed to speed the delivery
of data for business-to-business Internet commerce
and business analytics, said it appointed Jeffry
Allen to its board of directors, bringing the board's
total to six. Mr. Allen is CFO and vice president
of finance and operations for Network Appliance.
Investors for Acta include Colman Partners, Comdisco
Ventures, Greylock, Norwest Venture Partners, Sycamore
Venture Capital, U.S. Venture Partners, and Van
Wagoner Fund.
http://www.acta.com/
_____________________________________________

o DMR Consulting Exec Joins Software Firm infoShark's Board

CHANTILLY, Va. -- InfoShark, a provider of software
products that enable enterprises to build a business-to-business
infrastructure for accessing, exchanging and transmitting
XML data, said it elected Michael J. Poehner, president
and chief executive officer of DMR Consulting, to
its board of directors. Investors include JMI Equity
Fund, Lazard Technology Partners, and 21st Century
Ventures.
http://www.infoshark.com/
_____________________________________________

o incuVest Names Merck Division Senior VP to Board

NEW YORK -- incuVest, a venture capital incubator
and accelerator, said it appointed Margaret G. McGlynn
of Merck & Co. to its board of directors. Ms. McGlynn
serves as senior vice president of Merck's human
health marketing division. Ms. McGlynn will use
her expertise in the pharmaceutical industry to
aid in incuVest's growth as the company incubates
and invests in new technology companies. incuVest
also has offices in Austin, Texas, Research Triangle
Park, North Carolina, and Sebastian, Florida.
http://www.incuvest.com/
_____________________________________________

o Irish XML App Firm Vordel Adds Corporate Financier to Board

DUBLIN -- Vordel, a provider of XML-based applications
and tools for business-to-business uses, said it
named Paul Connolly to its board of directors. Mr.
Connolly is the chief executive officer of Connolly
Corporate Finance, an international finance company.
He has served with KPMG Chartered Accountants and
Hibernia Meats Group as a financial controller before
founding Connolly Corporate Finance in 1991. He
also sits on the boards of several companies, including
Hibernia Foods and Torc Telecom and is a former
board member of Esat Telecom. Vordel is backed by
individual and institutional investors.
http://www.vordel.com/
_____________________________________________

o RedEnvelope Names Prophet Brand CEO to Its Board

SAN FRANCISCO -- RedEnvelope Gifts Online, an online
store which offers a refined selection of gifts,
said it named Michael Dunn, president and CEO of
San Francisco-based Prophet Brand Strategy, to its
board of directors. Prophet and RedEnvelope have
been working together since 1999. Investors for
RedEnvelope Gifts Online  include Atrium Capital,
Comdisco Ventures, Crown Technology Partners, Sequoia
Capital, Weston Presidio Capital, Sippl MacDonald
Ventures, Silicon Valley Angel Fund, and Philips-Smith
Specialty Retail Group.
http://www.redenvelope.com/

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

o Net Video Firm Vividon Makes Ex-Vignette VP President, CEO

SADBURY, Mass. -- Vividon, which develops content
delivery servers for streaming video, said it has
appointed David Ellenberger as president and CEO.
Mr. Ellenberger recently served as vice president
of Vignette. When Vignette acquired DataSage in
January, Mr. Ellenberger became president and board
member of the acquired company. Vividon has received
funding from Atlas Venture, Carlyle Venture Partners
and private investor James Dow.
http://www.vividon.com/
_____________________________________________

o Former Motorola Executive is New CEO for Foxcom Wireless

VIENNA, Va. -- Foxcom Wireless, a provider of indoor
coverage technology for the wireless industry, said
it named Tom Hinton as its new chief executive officer.
Mr. Hinton was most recently with Motorola, where
he worked in executive positions including director
of international business development, general manager
of the company's greater China network solutions
division, and assistant general manager of the Asia
Pacific network systems business. He also worked
as an executive with AT&T and BellSouth. Mr. Hinton
succeeds former chief executive officer Ofer Ronen,
who remains with the company as president and COO.
Foxcom Wireless is backed by 3Com, APAX, AIG Orion,
 CDB WebTech, Eurofund, Genesis Partners, Global
Crossing, Israel Seed Partners, KTB, Microsoft,
STI Ventures, and Unico.
http://www.foxcomwireless.com/
_____________________________________________

o MEI Software Systems Promotes VP to President and Acting CEO

RESTON, Va. -- MEI Software Systems, a provider
of software and services for associations, said
it promoted James Dennis to president and acting
CEO. Mr. Dennis is a nine-year veteran of the company,
most recently serving as vice president for consulting
and technical services. He succeeds Henry S. Firey,
who resigned from the company in early August. The
company also announced a series of other new corporate
appointments and promotions. MEI Software Systems
is backed by E2Enet. In addition to association
management products, MEI offers portal management
software and services to associations.
http://www.meisoft.com/

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

o Brazil's Banco Pactual Launches BRR $75 Million Tech Fund

RIO DE JANEIRO -- Brazilian bank Banco Pactual said
it has raised BRR 75 million ($41 million) for a
new fund, Pactual Tecnologia. The fund will focus
on investments in technologies related to health,
media and marketing, and education. To date, the
fund has invested in Genexis, a business-to-business
portal for the pharmaceutical and healthcare industries
backed by private equity fund Pactual Electra Capital
Partners. Pactual Electra was jointly formed by
Banco Pactual and fund management group Electra
Fleming. Pactual Tecnologia will make investments
of  between $1 million and $5 million. While the
fund will focus primarily on Brazilian companies,
it may also invest in firms in Argentina, the U.S.,
or other countries in Latin America.
http://www.pactual.com.br/
http://www.genexis.com/
_____________________________________________

o KPN and VNU Launch $30 Million Fund For European Tech Firms

THE HAGUE, Netherlands -- KPN Royal Dutch Telecom
and VNU, an international publishing and information
company, said they launched a new fund. The KPN-VNU
Convergence Fund will launch in October with committed
capital of $30 million. Both companies are equal
investors in the new fund, which will concentrate
its investments on European mobile Internet applications
and broadband content delivery startups. The companies
intend to capitalize on technologies developed by
the fund. The new fund will be managed through the
KPN investment subsidiary KPN Valley, which already
holds $89 million in capital for investment. In
addition to this European investment, KPN has invested
in funds concentrating on Israeli startups through
the Magnum Communications Fund and American technology
companies through Advent International.
http://www.kpn.com/
_____________________________________________

o Draper Laboratory Launches $15 Million Venture Subsidiary

CAMBRIDGE, Mass. -- The Charles Stark Draper Laboratory,
a developer of technology for global positioning
systems, information systems, and other technology
for commercial and military uses, said it created
Navigator Technology Ventures (NTV). The new subsidiary
will incubate companies in the fields of electronics,
information technology, wireless communications,
and biotechnology. NTV will manage a $15 million
development and seed fund and make typical investments
between $200,000 and $2 million. The new venture
will also provide services including business and
marketing functions, operating space, and access
to laboratory facilities.
http://www.ntven.com/

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

o High Tech Venture Firm YankeeTek Ventures Gets New Partner

CAMBRIDGE, Ma. -- YankeeTek Ventures, which invests
in early stage technology companies, said it has
appointed Timothy J. Kraskey to serve as managing
director. Prior to joining YankeeTek he was a founding
partner of Mentor Group, where he coached and made
equity investments in high-tech start-up teams.
Mr. Kraskey also co-founded and was vice-president
of sales and marketing for Sahara Networks, which
was acquired by Cascade Communications. YankeeTek,
which has $60 million under management, is backed
by Advanced Technology Ventures, Advent International,
Bain Capital, Battery Ventures, Boston Millennia
Partners, HarbourVest Partners, and the TH Lee,
Putnam Internet Fund.
http://www.yankeetek.com/
_____________________________________________

o NIF Ventures Promotes Partner to Run Silicon Valley Office

PALO ALTO, Calif. -- NIF Ventures, the Tokyo-based
venture capital unit of Daiwa Securities Group,
said it promoted partner Jim Timmins to managing
partner of the firm's Silicon Valley office. Mr.
Timmins served with Redwood Partners and Hambrecht
& Quist prior to joining NIF in 1998. NIF Ventures
manages approximately $1.2 billion. Its portfolio
companies include AccessLan, eFinance, SpectraSwitch,
and WaveSplitter. Telephone 650-461-5000.

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

o Rtime

NEW YORK -- An item in yesterday's VentureWire about
Sony's acquisition of Rtime incorrectly listed the
company's URL. Rtime's URL is http://www.rtimeinc.com.


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

Has patent law gone too far?

The courts have granted protection to one-click shopping,
but is this way of doing business so obvious and trivial
that lawmakers should intervene?  And what about online
auctions for selling vacant airline seats? Is intellectual
property law able to cope in the era of Amazon.com and
Priceline.com, or has it become patently absurd? Join us
in the search for answers at this year's Wall Street Journal
Technology Summit, featuring Stanford law professor Larry
Lessig.

Register today at http://info.wsj.com/techsummit/

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

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
=====================================