======================================================
VENTUREWIRE --- Monday, September 25, 2000
======================================================
Private Company Business News
------ Published Daily by Technologic Partners -------
http://technologicpartners.com
======================================================

Top Stories:

o Chase Capital To Sell $2 Billion From Secondary Funds
o IP Carrier CoMindico Lands $96 Million in Funding
o Reports: Sanwa Bank and Microsoft Create Asian Fund
o Singapore and Israeli Firms Launch $150 Million Fund
o Former AOL Exec Debby Meredith Joins Mohr Davidow as Partner
o Customer Use Info Tech Firm TeaLeaf Names Sun Exec to Board

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Also in This Issue:

New Money:
o E-Commerce Firm Plmarket Gets $5.2 Million in First Round
o E-Currency Firm 2Xchange Raises $1 Million Seed Round
o Health Software Provider Exante Lands $2 Million Series A
o Software Provider Ardext Receives $1 Million in Series A
o Web-Based Auto Service Shop Texas Tea Raises $850,000 Seed
o Chelsea Paper Company, B2C Retailer, Launches With Series A
o Web Audio ASP Gets $1.5 Million, Ex-Toys 'R Us Exec on Board
o Streaming Video Firm Videoshare Raises $15 Million Round Two
o Toolwire Has $15 Million Series B, New CEO and Board Members
o $15 Million Round Three for Sharing Technologies
o Net Services Firm Digital Focus Gets $7 Million Round Two
o Clarity Visual Systems Receives $6.5 Million Third Round
o E-Mail Ad Firm TMXinteractive Raises $15 Million from Syncom
o Linux Graphic Software Firm Metro Link Secures $5.6 Million

New Products:
o University of South Florida To Start New Incubator Services
o Linux Software Firm Corridor Announces Launch and Incubation
o E-Learning Broadband Aps Firm One Touch Systems Alters Name

New Deals:
o Cognito Relinquishes 25% of Its Equity in Restructuring

M&A:
o Event Planning ASP Event411 Acquires Housing Service MeetUp
o Investment Firm Yazam Buys Business Development Firm Todo
o IT Factory Acquires Lotus Consultant Group MICA
o Aficionado Site FansRule Acquires Fan Emporium

New Directors:
o Hotel Internet Access Provider RoomLinX Adds Two to Board

New People:
o Former Critical Path Exec Becomes CEO of Storage Site Xdrive
o Eko Systems Names Former Apache Exec as President and CEO

VW Corrections:
o The Atlantis Group
o eLive

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

o Chase Capital To Sell $2 Billion From Secondary Funds

NEW YORK -- Chase Capital Partners is selling off
up to $2 billion of its private equity in funds
managed by other firms. Chase has $5 billion invested
in 120 different fund families and more than 320
different limited partnerships managed by firms
including Bain Capital, Kohlberg Kravis Roberts,
and Hicks Muse Tate & Furst. Chase will sell a portion
of its investments in the various funds. Kohlberg
Kravis Roberts declined to comment on the development;
Bain and Hicks Muse could not be reached for comment.
The maneuver is intended to free up capital for
future investments in additional LBO funds. The
sale of the secondary investments will not affect
Chase Capital Partners' direct equity investments.
http://www.chasecapital.com/
_____________________________________________

o IP Carrier CoMindico Lands $96 Million in Funding

SYDNEY, Australia -- CoMindico, an independent wholesale
supplier of integrated data and voice telephony
services, said it secured $96 million in funding
led by J.P. Morgan, AGL, and AMP Asset Management.
Queensland Press, Kerry Packer's Consolidated Press
Holdings Group, and company founder Wayne Passlow,
chief executive officer of Open Communications,
also contributed to the financing. A spokesperson
for new investor J.P. Morgan said the firm contributed
to $22 million. CoMindico also said it received
an unspecified amount of vendor financing from Cisco
Systems. CoMindico will use Cisco's vendor financing
and the equity funds to develop its IP-based carrier
network. Open Telecommunications will help design
the network.
http://www.comindico.com.au/
_____________________________________________

o Reports: Sanwa Bank and Microsoft Create Asian Fund

TOKYO -- Sanwa Bank and Microsoft will set up a
$50 million investment fund, according to reports
from the Wall Street Journal and the Associated
Press. The fund, which was launched by the Hong
Kong unit of Sanwa Bank and Microsoft, will invest
in online commercial ventures in China, South Korea,
and other Asian countries.
http://www.sanwabank.co.jp/
http://www.microsoft.com/
_____________________________________________

o Singapore and Israeli Firms Launch $150 Million Fund

SINGAPORE -- Keppel Telecommunications & Transportation,
a Singapore-based Internet holding company, and
Shrem Fudim Kelner Technologies, an Israeli investment
group, said they launched a new fund to invest in
early stage information technology companies. The
companies intend to raise up to $150 million for
the new Israeli High Tech Fund. Keppel and Shrem
Fudim Kelner will both invest $20 million to launch
the fund. The companies said the fund would concentrate
its investment activities on early and mid-growth
companies in the telecommunications, media, and
technology marketplaces. According to the investors,
the fund will deal exclusively with Israeli firms
although operations may have headquarters in the
U.S. or Europe. The fund will be managed by Shuki
Gleitman, former chief scientist and director general
of Israel's Ministry of Industry and Trade; Anya
Eldan, former president of AST Computers Israel;
and Henry Chia, director of corporate finance at
Keppel Telecommunications & Transportation.
http://www.keppelcorporation.com/
http://www.sfk.co.il/
_____________________________________________

o Former AOL Exec Debby Meredith Joins Mohr Davidow as Partner

MENLO PARK, Calif. -- Early-stage investment firm
Mohr Davidow Ventures said it named Debby Meredith
as a new partner. Ms. Meredith served most recently
as a senior vice president and chief quality officer
with the iPlanet group of America Online. She also
served as a senior vice president with Netscape
and as vice president of research and development
with Collabra Software. In addition, Ms. Meredith
has worked as vice president of business development
at Slate and served with Bell Laboratories, Logitech,
and Metaphor Computer Systems.
http://www.mdv.com/
_____________________________________________

o Customer Use Info Tech Firm TeaLeaf Names Sun Exec to Board

SAN FRANCISCO -- TeaLeaf Technology, which provides
companies with a technology that enables them to
collect information about customers' use of their
Web sites, said it has appointed Janpieter Scheeder,
president of network storage for Sun Microsystems,
to its board of directors. Mr. Scheeder has also
served as president of the Sun software business.
Before joining Sun Microsystem, he held a number
of positions at Data General, his most recent as
vice president of Aviion System Engineering. Tealeaf,
which also said it launched its first product, Tealeaf
TeaCommerce Suite, is backed by J.P. Morgan & Co.,
SAP AG, Matrix Partners, and Foundation Capital.
The company's products helps Web site operators
understand how customers interact with their sites.
http://www.tealeaf.com/

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

o E-Commerce Firm Plmarket Gets $5.2 Million in First Round

SHELTON, Conn. -- Plmarket, an electronic commerce
infrastructure and services company, announced it
has secured $5.2 million in its first round of funding
from Highland Capital Partners, General Catalyst,
InterActive Capital Partners, Audax Ventures, and
Grove Street Advisors. The company said it would
use the new funds to develop its technology platform
and continue its worldwide services.
http://www.plmarket.com/
_____________________________________________

o E-Currency Firm 2Xchange Raises $1 Million Seed Round

CHICAGO -- 2Xchange, developer of a technology platform
exchange that enables companies to trade goods and
services online using an electronic currency called
Global Business Usage Currency (GBUC), said closed
its seed round of financing with $1 million. The
round was financed by individual investors including
Mark Tebbe, chairman of Lante; Daniel Stern of Morgan
Stanley Dean Witter; and Chicago neurosurgeon Dr.
Ron Michaels.
http://www.2Xchange.com/
_____________________________________________

o Health Software Provider Exante Lands $2 Million Series A

DENVER -- Exante Health, a provider of Web-based
customer healthcare service and e-commerce software,
said it has received $2 million in its Series A
round of funding from RockMountain Ventures and
individual investors. The funds will be used for
product development and sales and marketing. Exante
also provides ASP and consulting services to small
and mid-size healthcare payer organizations.
http://www.exantehealth.com/
_____________________________________________

o Software Provider Ardext Receives $1 Million in Series A

ATLANTA -- Ardext Technologies, a software provider
for testing mixed-signal electronics, said it received
Series A funding in the form of $250,000 from Yamacraw
Seed Capital Fund, a $5 million fund that is part
of a larger, $100 million state-led initiative aimed
at developing broadband companies in Georgia. Ardext
also received $750,000 from individual investors.
The company said it will use the funds for product
development. To date, Yamacraw Seed Capital has
also invested in RF Solutions, a chip design company.
http://www.ardext.com/
http://www.yamacraw.org/
_____________________________________________

o Web-Based Auto Service Shop Texas Tea Raises $850,000 Seed

SAN JOSE, Calif. -- Texas Tea, which provides online
and onsite automotive service as an employee benefit
option for corporations, said it raised $850,000
in its seed round of funding from Sierra Angels,
BH Equity and Springboard Angels. The company plans
to use the funds for marketing and to buy more equipment.
http://www.texastea.com/
_____________________________________________

o Chelsea Paper Company, B2C Retailer, Launches With Series A

NEW YORK -- ChelseaPaper.com, a business-to-consumer
retailer of customized stationary, announced its
launch. The company recently raised over $1 million
in its Series A funding. The round included investments
from two undisclosed venture capital funds as well
as individual investors. The company said it will
use the fund for its operational and marketing.
The Chelsea Paper Company said there were no board
seats taken as a result of the investment. The company
is now rolling out its service online, but has arranged
to set up service stations in traditional retailing
venues to drive more business to the site.
http://www.chelseapaper.com/
_____________________________________________

o Web Audio ASP Gets $1.5 Million, Ex-Toys 'R Us Exec on Board

WOBURN, Mass. -- BYOBroadcast, an Internet audio
broadcasting application service provider, said
it received $1.5 million in seed funding from individual
investors Robert Lewis, co-founder of Cogentrix
Energy; Bruce Krysiak, former president and COO
of Toys 'R Us and Dollar General; Thomas Armstrong,
founding partner of Traverse Partners; Richard Kosowsky,
COO and CFO of Access Media; and other undisclosed
individuals. Mr. Lewis, Mr. Armstrong and Mr. Kosowsky
were named to the board of directors. The company
said it will use the funds to increase product deployment
and development. The company is planning to raise
a round of institutional funding.
http://www.byobroadcast.com/
_____________________________________________

o Streaming Video Firm Videoshare Raises $15 Million Round Two

WATERTOWN, Mass. -- Videoshare, a developer of streaming
video technology for developing, editing, and transmitting
video over the Web, said it has raised $15 million
in its second round of funding led by Chase Capital
Partners and TechFarm/Techfund Capital. Other investors
included EMC, Five Paces Ventures, Brand Equity
Ventures, Fleet Banking, Latona Associates, and
Scripps Ventures. The company said it would use
the funds to build its infrastructure and increase
its staffing.
http://www.videoshare.com/
_____________________________________________

o Toolwire Has $15 Million Series B, New CEO and Board Members

SANTA CLARA, Calif. -- Toolwire, which provides
online design infrastructure for the electronics
industry, said it raised $15 million in its Series
B round of funding. New investor 3i led the round,
which included new investor Horizon Ventures and
previous investors Angel Investors, Artemis Ventures,
and Barrington Partners. Horizon Ventures managing
director Jack Carsten and 3i's Paul Rivers-Latham
will sit on the company's board of directors. The
company will use the funding for further designs
of its wireless communications, networked systems,
and electronics. The company also said it named
former vice president of business development Mark
Gilbreath as its new president and CEO. Mr. Gilbreath
succeeds former president and CEO Daniel Hodges,
who remains with the company as chief strategist.
http://www.toolwire.com/
_____________________________________________

o $15 Million Round Three for Sharing Technologies

PARIS -- Sharing Technologies, the developer of
knowledge management  applications, said it has
secured $15 million led by Siparex Ventures. NIF
Ventures of Tokyo's Daiwa Securities Group, Montreal's
Investissement Desjardins, SG Asset Management,
Woodside Fund, Sofinnova, Innovacom, CIC, and Trinova
all participated in the round. Sharing said it will
use the funds to expand its worldwide sales, marketing
and professional services organizations, as well
as to support product development. The company said
it also received $6 million in financing from IBM
Global Financing.
http://www.sharing.com/
_____________________________________________

o Net Services Firm Digital Focus Gets $7 Million Round Two

HERNDON, Va. -- Digital Focus, an Internet business
integrator specializing in strategy development,
Web site design and construction, and interactive
system deployment, said it received $7 million in
its second round, led by the Winston/Thayer Partners
Fund. Previous investor Blue Water Capital Partners
also participated. Scott Andrews, managing partner
of Winston Partners, joined the company's board
of directors. The company will use the funds for
expansion into other cities and for product development.
http://www.digitalfocus.com/
_____________________________________________

o Clarity Visual Systems Receives $6.5 Million Third Round

WILSONVILLE, Ore. -- Clarity Visual Systems, a provider
of visual messaging software, said it completed
its third round of financing with over $6.5 million.
The round was led by Needham Capital Partners, with
participation from other undisclosed investors.
The funds will be used for operational purposes
and to support the company's marketing initiatives.
http://www.clarityvisual.com/
_____________________________________________

o E-Mail Ad Firm TMXinteractive Raises $15 Million from Syncom

CONSHOHOCKEN, Pa. -- TMXinteractive, a provider
of multimedia e-mail advertising and related technologies,
said it received $15 million in financing from Syncom,
a Silver Spring, Md.-based venture capital fund.
The company plans to use the funds to expand its
operations, which includes staffing new offices
and technology development.
http://www.tmxinteractive.com/
_____________________________________________

o Linux Graphic Software Firm Metro Link Secures $5.6 Million

FORT LAUDERDALE, Fla. -- Metro Link, a software
development company founded in 1989 that specializes
in graphics display technology for Linux, UNIX and
embedded operating systems, said it received a private
placement from Linux Global Partners, a New York-based
venture fund, for a total of $5.6 million in cash
and stock. The funds will be used for research and
development, sales and marketing, and working capital.
http://www.metrolink.com/

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

o University of South Florida To Start New Incubator Services

TAMPA, Fla. -- The University of South Florida is
launching the Center For Entrepreneurship and Global
Management, a high-tech incubator. Mike Kovac, USF's
high-technology programs director, said the Center
has secured $1 million from Dan Doyle, BrainBuzz.com's
co-founder and CEO, and will use the funds to nurture
up to 10 local hi-tech startups. The funds will
also go to fuel the commercialization of university
research projects, Mr. Kovac said. The Center said
it would announce its first series of investments
within six months. Telephone 813-974-3780.
_____________________________________________

o Linux Software Firm Corridor Announces Launch and Incubation

GREENBELT, Md. -- Corridor Software, which is developing
a suite of Linux server components for small businesses,
announced the formation of the company. Corridor
Software is being incubated by Greenbelt, Md.-based
OAO, which is providing the company with office
space and materials, computer equipment, engineering,
business assistance, and unspecified funding.
http://www.corridorsoftware.com/
_____________________________________________

o E-Learning Broadband Aps Firm One Touch Systems Alters Name

SAN JOSE, Calif. -- One Touch Systems, a provider
of advanced interactive broadband applications for
electronic learning sites, said it has changed its
name to One Touch Knowledge Systems. The company
said the change reflects its expanded business direction
and commitment. One Touch Knowledge Systems is backed
by the Hughes Network Systems, Apollo Group and
the Hermes Fund.
http://www.onetouch.com/

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

o Cognito Relinquishes 25% of Its Equity in Restructuring

LONDON -- Cognito, which provides wireless technology
services, said it relinquished 25% of its equity
in a corporate restructuring. The stake was assumed
by F&C Ventures. The company said that the equity
exchange was strategic in nature, enabling the company
to expand its operations by aligning with a major
financial institution. Cognito said that F&C Ventures
would take one seat on its board of directors as
a result of the equity exchange.
http://www.cognito.co.uk/

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

o Event Planning ASP Event411 Acquires Housing Service MeetUp

MARINA DEL REY, Calif. -- Event411.com, an application
service provider of tools for online meeting planning,
said it has acquired MeetUp.com, an Internet-based
event housing reservation and hotel block management
firm. Financial terms were not disclosed. MeetUp's
chief executive officer Edward Pereira will move
from the firm's Vancouver offices to Event411 offices
in Los Angeles and work on product development.
Event411 is backed by CB Capital, Gannett, WI Harper
Group, Van Wagoner Funds, Sandler Capital Management
and Camelot Capital.
http://www.meetup.com/
http://www.event411.com/
_____________________________________________

o Investment Firm Yazam Buys Business Development Firm Todo

NEW YORK -- Yazam, an investment firm specializing
in seed-stage and business development, said it
has acquired Tokyo-based Todo Technologies, which
specializes in business development for communications,
software and information technology firms. Todo
president Todd Walzer will be president and representative
director of the renamed subsidiary, Yazam K.K. Yazam
is backed by Texas Pacific Group, J.P. Morgan, Merrill
Lynch, Apax Partners, China Development Industrial
Bank, Itochu International, Microdent, Bank Hapoalim,
Carlyle Internet Partners and individual investor
Charles Schwab.
http://www.yazam.com/
_____________________________________________

o IT Factory Acquires Lotus Consultant Group MICA

CAMBRIDGE, Mass. -- IT Factory, an international
supplier of collaborative Internet business solutions,
announced the acquisition of MICA Computing Services.
Terms of the deal were undisclosed. MICA specializes
in the design and implementation of Lotus Domino
infrastructures as well as intranet and extranet
solutions. This is the fourth in a series of planned
acquisitions, which include Corporate Image Software
in January, Solutions By Design in April, and Documental
in June. IT Factory is backed by 2M Invest, Gilde,
and Den Danske Bank.
http://www.mica.com/
http://www.itfactory.com/
_____________________________________________

o Aficionado Site FansRule Acquires Fan Emporium

CARLSBAD, Calif. -- FansRule.com, an online site
that provides fans of sports and entertainment personalities
with news, celebrity participation, fan interaction,
and merchandise opportunities, has acquired Fan
Emporium, which operates a Web site that hosts official
fan clubs for celebrities such as Mariah Carey,
John Mellencamp, Michael Bolton, and Cyndi Lauper.
Financial terms of the acquisition were not disclosed.
FansRule.com is backed by Marblehead Capital Group.
http://www.fanemporium.com/
http://www.fansrule.com/

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

o Hotel Internet Access Provider RoomLinX Adds Two to Board

FREMONT, Calif. -- RoomLinX, a provider of wireless
Internet access to hotels, convention centers, and
extended-stay facilities, has added Mario M. Rosati
and Herbert I. Hunt III to the company's board of
directors. Mr. Rosati is a member of Silicon Valley
law firm, Wilson Sonsini Goodrich & Rosati in Palo
Alto, Calif. Mr. Hunt founded international executive
recruitment firm, H.I. Hunt & Co. Mr. Rosati and
Mr. Hunt join Allan B. Shapiro, Dennis M. Fitzpatrick,
and Robert A. Crist on the RoomLinX Board. RoomLinx
is backed by individual investors and is in the
process of raising its first round of funds.
http://www.roomlinx.com/

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

o Former Critical Path Exec Becomes CEO of Storage Site Xdrive

SANTA MONICA, Calif. -- Xdrive, an Internet storage
and universal file access company, named Paul Gigg
as president and chief executive officer replacing
founder Brett O'Brien, who will remain as chairman.
Mr. Gigg was formerly the chief operating officer
of Critical Path, a provider of Internet messaging
infrastructure. Xdrive is backed by Wit SoundView
Ventures, America Online, David Bohnett of Baroda
Ventures, Deutsche Banc Alex Brown, EMC, J. & W.
Seligman & Co., Jump Investors, Pacific Capital
Group, PCG Ventures, Veritas Software,  eCompanies
Venture Group, and the Goldman Sachs Group.
http://www.xdrive.com/
_____________________________________________

o Eko Systems Names Former Apache Exec as President and CEO

FARIFAX, VA. -- Eko Systems, a provider of medical
record keeping technology, said it named Dr. Scott
Mason as its first president and CEO. Dr. Mason
will join the company in the next few weeks upon
completing a number of client assignments for his
current employer Apache Medical Systems, where he
has served as executive vice president. Eko Systems
is backed by Beacon Global Advisors and is raising
its first round of funding.
http://www.ekosystems.com/

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

o The Atlantis Group

NEW YORK -- Due to inaccurate information provided
by the company, a story in VentureWire on Sept.
18 announcing a new $6 million fund raised by The
Atlantis Group, contained an incorrect Web address.
The correct URL is http://www.theatlantisgroup.net,
not http://www.theatlantisgroup.com.
_____________________________________________

o eLive

NEW YORK -- A story in Friday's VentureWire announcing
eLive's $3 million funding, contained an incorrect
Web address. The correct URL is http://www.goelive.com.


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October 31, 2000
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