======================================================
        VENTUREWIRE --- Wednesday, November 15, 2000
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           Private Company Business News
------ Published Daily by Technologic Partners -------
           http://technologicpartners.com
======================================================

Top Stories:

o Advanced Technology Ventures Raising New $800 Million Fund
o Qualcomm Forms Qualcomm Ventures with $500 Million
o Broadband Firm IP Communications Gets $312 Million Round Two
o Foodbuy.com Ends California Operations, Cuts 22% of Workers

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DODADS, GADGETS, AND GIZMOS, OH MY!

Our pockets are overflowing with mobile phones, PDAs, and
two-way pagers, and more products -- from Web pads to picture
frames -- come with Internet connections. Consumer Devices,
one of five expert panels at Technology Outlook 2000, will
sort through the clutter to determine which devices have the
best chances of finding mass-market audiences:

Safi Qureshy, Chairman, AudioRamp
Daniel H. Rimer, Partner, The Barksdale Group
Kent Savage, President & CEO, Netpliance
Michael Slater, President, PhotoTablet

Technology Outlook 2000:
The future of pervasive computing
December 4 and 5, San Francisco
http://www.tpsite.com/tp/conf/to2000/?vw=20001115
A VentureWire investment conference.

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Also in This Issue:

     New Money:
o Mobile Platform FreeRein Gets $15 Million Series A
o Optical Firm PacketLight Networks Lands $18 Milion Round One
o Connectivity Firm NetCarrier Raises $28 Million First Round
o E-commerce Apps Firm InfoMech Raises $4.2 Million Round One
o IT Resourcer Business Layers Has $12.5 Million Third Round
o Optical Networking Firm Overture Networks Gets $750,000 Seed
o Car Market Tech Firm Autodaq Gets $33 Million in Round Two
o French Security ASP Intranode Has $1.7 Million First Round
o Infrastructure Provider DV2 Raises First Round of Funding
o Light Technology Firm ELAM-T Has $2.9 Million in First Round
o Swedish Mobile Tech Firm Mobyson Raises $7.8 Million
o Net Communications Firm TeleNova Has $12 Million Round Two
o Net Health Data Firm Helios Health Has $20 Million Round Two
o Online Financial Tool StatementOne Has $15 Million Round Two
o Optical Networking Firm Cinta Has $36 Million Second Round
o Salesdriver.com Raises $6.2 Million Second Round
o Clinical Data Provider Integrative Medicine Gets $4 Million
o Data and Content Manager Picdar Raises $7.2 Million From 3i
o Digital Video Firm Video Networks Lands $66 Million Series H
o EFI Invests in Graphics Network D2P and Venture Fund DOR
o Inkra Networks Raises $26.5 Million Round
o Online Customer Relations Firm Norkom Raises $17 Million
o Online Research and Data Manager FIRM Raises $5 Million
o Utility.com Raises Over $22 Million in Third Funding Round
o Canadian Travel Site Tripeze.com Gets $1 Million Third Round
o Internet Access Firm Winfire Gets $17 Million Round Three
o Online Investment Exchange BDirect Gets $6 Million Series C
o Search Firm Requisite Technology Has $30 Million Mezzanine
o T-Venture Takes 25% Equity Stake in B2B Marketplace XMarket
o e-Commerce Technology Firm RichFX Gets $33 Million Series D

     Bad News:
o Drinks.com Cuts Half of Staff, Struggles to Stay Alive
o Messaging Firm WebTaggers Shuts Down Due to Lack of Funding

     New Products:
o Advocacy Group Environmental Defense Spins-off LocusPocus
o Payback Training Systems Changes Name to Avaltus
o Vibrance Networks Announces Company, Platform

     New Deals:
o ING Group Forms Partnership with and Invests in PayPal

     M&A:
o Broadband Firms Eureka and Gillette Global Network Merge
o Hotel Firm InnHanse Acquires Trade Show Firm Configurations
o Wireless App Firm Infolio Acquires Wireless Provider Nopex

     New Directors:
o BlueLight.com Appoints Kmart Executive to Board
o Quadrant Partner Joins ICP Firm Global Broadband As Chairman
o Wireless Services Firm WISP Names New Chairman

     New People:
o Optical Firm Onetta Taps Ex-Redback CEO as Chair, Pres, CEO
o E-Firm Soneta Appoints E-Commerce Exec as President and CEO
o Optical Firm Aurora Networks Has New President and CEO
o Zactus Names Former IllusionFusion! Founder CEO
o AvantCom Network Appoints Intel Exec. as President and CEO
o MicroCreditCard Names Former BroadIP Networks Head as CEO
o Human Resource Tech Company Sylinq Names CEO
o Billing Systems ASP Derivion Names COO as President
o Software Firm Portris Names Co-CEO and President

     VC Fund News:
o Portview Communications Closes $61 Million Fund-Raising
o Cambrian Ventures Raising Small Seed Fund From Individuals
o ETF Group Opens First U.S. Office in New York
o TL Ventures Opens LA Office With New Staff

     VC Personnel:
o St. Paul Venture Capital Announces Second Partner in Boston
o Windward Ventures Names Advisor and Ex-Net Exec as Partners

     VW Corrections:
o Avolo
o Malibu Networks
o Telespree

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CUTTING-EDGE PHOTONICS AND LEADING-EDGE PLAYERS
Join the cream of the optical communications industry in
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* Debate industry, market, and technology developments with
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* Assess the prospects of the 50 hottest pre-IPO optical
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Exclusive attendance = optimal networking opportunities.
Your participation at this event is subject to approval and
is limited to senior executives involved in the optical
communications industry.  To request a registration:
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Optix2001 -- Toward the Photonic Internet
February 11 to 14, 2001, Ritz Carlton Huntington
Hotel & Spa, Pasadena, CA

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

o Advanced Technology Ventures Raising New $800 Million Fund

PALO ALTO, Calif. -- Venture capital firm Advanced
Technology Ventures said it is raising its seventh
fund, ATV VII, which it expects to close in the
mid to late first quarter of 2001 with at least
$800 million. ATV said its existing limited partners
were participating in the new fund that will focus
on early-stage communications, Internet infrastructure,
software, and healthcare companies. The firm usually
invests in Series A rounds, but makes some Series
B and C round investments. Advanced Technology Ventures'
portfolio companies include Boomerage Marketing,
Garage.com, iConverse, Linx Communications, Onix
Microsystems, and SpectraSwitch.
http://www.atv-ventures.com/
_____________________________________________

o Qualcomm Forms Qualcomm Ventures with $500 Million

SAN DIEGO -- Qualcomm, a company which develops
and delivers digital wireless communications products
and services based on its code division multiple
access (CDMA) technology, said it has formed Qualcomm
Ventures and is making a $500 million commitment
to the fund that will be invested over four years.
The fund will make strategic investments in startup
companies globally to support the adoption of CDMA
and promote wireless Internet usage. Jeff Jacobs,
senior vice president of business development for
Qualcomm will manage Qualcomm Ventures. The fund
will target the areas of communications devices
and applications; wireless communications components
and infrastructure; Internet infrastructure, content
and services; and enabling and complementary technologies.
The size of each investment is expected to be up
to $10 million.
http://www.qualcomm.com/ventures/
_____________________________________________

o Broadband Firm IP Communications Gets $312 Million Round Two

DALLAS -- IP Communications, a broadband service
provider, said it has secured $312 million in its
second round of funding led by VantagePoint Venture
Partners, a previous investor. CIBC Capital Partners
and GE Equity also reinvested more than 100% of
their initial amount. New investors, DLJ Global
Communications Partners, Desai Capital Management,
Creative Technology, Prudential Capital Group-Direct
Private Equity, and Bruckmann, Rosser, Sherrill
& Co., as well as several other undisclosed private
firms also participated in the round. Together,
new and previous investors provided IP Communications
with $130 million in equity financing. The remaining
$182 was secured as a long-term debt. The company
said it will use the funding to accelerate the strategic
development of its network and develop its broadband
products and applications.
http://www.ip.net/
_____________________________________________

o Foodbuy.com Ends California Operations, Cuts 22% of Workers

ATLANTA -- Foodbuy.com, which offers group purchasing,
rebate tracking, auditing, and consulting services
to food services companies, said it was ending its
operations in California and cutting 20 out of 90
workers, or approximately 22% of its workforce.
The company said it was consolidating its Web design
staff due to its acquisition this summer of Foodservice.com,
a New York City-based online businesss-to-business
community for foodservice professionals. The company
also said the layoffs resulted from its changing
its sales focus to high-end sales and to its consolidation
of its tracking services to Atlanta. Foodbuy.com
is backed by CMGI @Ventures, Capstone Ventures,
Kinetic Ventuers, Morrison Management Specialists,
and Salix Ventures.
http://www.foodservice.com/

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

o Mobile Platform FreeRein Gets $15 Million Series A

SEATTLE -- FreeRein, which is developing a platform
to provide enterprise applications and services
to mobile workforces, said it raised $15 million
in Series A financing from ComVentures and Technology
Partners. FreeRein co-founder and CEO, Don Davis,
was managing partner for the Pacific Northwest region
of USWeb/CKS. Bruce Gilpin, FreeRein co-founder
and chairman of the board, was also a USWeb executive
and a co-founder of Intend Change.
http://www.freerein.com/
_____________________________________________

o Optical Firm PacketLight Networks Lands $18 Milion Round One

KFAR-SABA, Israel -- PacketLight Networks, which
develops optical systems technologies, said it raised
$18 million in its first round of financing. The
round inlcuded investments from new investor Carlyle
Internet Partners and previous seed investors ADC
Telecommunications, Polaris Venture Capital, and
Portview Communications. The company said it will
use the funding to continue its development. Hossam
Galal, director of the Carlyle Group, will take
a seat on the company's board of directors. PacketLight
also said it recently moved to new facilities in
Kfar Saba.
http://www.packetlight.com/
_____________________________________________

o Connectivity Firm NetCarrier Raises $28 Million First Round

LANSDALE, Pa. -- NetCarrier, an internet connection
provider, said it has raised $28 million in its
first round of funding from Brooks Capital Group,
whose president and CEO Brook J. Lenfest is also
chairman of NetCarrier. NetCarrier said there will
be no board changes as a result of the round and
that it will use the funds to expand beyond its
current service area of Pennsylvania, Delaware,
and New Jersey; to develop its network and infrastructure;
and for production.
http://www.netcarrier.com/
_____________________________________________

o E-commerce Apps Firm InfoMech Raises $4.2 Million Round One

ANNANDALE, Va. -- InfoMech, an Internet commerce
software applications firm, said it raised its first
round of funding with $4.2 million. Edison Venture
Fund led the round with a $2 million investment
in the company, which was also backed by Steve Walker
& Associates with a $1.25 million investment and
by the Maryland Angels Council. Gina Dubbe, managing
partner with Steve Walker & Associates, and Gary
Golding, general partner with the Edison Ventue
Fund, will sit on the company's board of directors.
The company will use the funding for further development
of its e-commerce application and for sales and
marketing. InfoMech's products and services include
software, implementation, applications management,
and Web site hosting.
http://www.infomech.com/
_____________________________________________

o IT Resourcer Business Layers Has $12.5 Million Third Round

ROCHELLE PARK, N.J. -- Business Layers, a developer
of directory-based applications that align business
needs with IT resources, said it received $12.5
million in third-round funding. The round was led
by Ascent Venture Partners (AVP), with participation
from prior investors Canaan Partners, Novell, Garage.com,
Gemini Capital, Formula Ventures, Israel Seed Partners,
and Shlomo Kramer, co-founder of Check Point Software
Technologies. The funding will be used for product
development and other purposes. AVP's Leigh Michl
will join Business Layers' board.
http://www.businesslayers.com/
_____________________________________________

o Optical Networking Firm Overture Networks Gets $750,000 Seed

RESEARCH TRIANGLE PARK, N.C. -- Overture Networks,
a developer of applications that enable service
providers to exploit  their optical IP networks,
said it received $750,000 in its seed round from
undisclosed individual investors. The company said
it will use the funds to expand its engineering
team and to design its product, which is still in
development. The company was founded last month
by Jeff Reedy, former chief technology officer and
vice president of engineering at Larscom, and Prayson
Pate, formerly Larscom's director of engineering.
http://www.overturenetworks.com/
_____________________________________________

o Car Market Tech Firm Autodaq Gets $33 Million in Round Two

MENLO PARK, Calif. -- Autodaq, which develops infrastructure
and applications for the Internet wholesale car
marketplace, said it has raised $33 million from
lead investors Madison Dearborn Partners and Clayton
Venture Group and from previous investors August
Capital and Zilkha Ventures as part of its still-open
second round. Benjamin Chereskin, managing partner
of Madison Dearborn partners, and Sandy Rogers,
an executive at Enterprise Rent-A-Car and a partner
of Clayton Venture Group, will join Autodaq's board
as its fifth and sixth members. Autodaq said it
will use the funds for business operations, product
development, and strategic acquisitions.
http://www.autodaq.com/
_____________________________________________

o French Security ASP Intranode Has $1.7 Million First Round

PARIS -- Intranode, a French developer of online
security applications, said it raised FFR 12 million
($1.7 million) in its first round of funding. Investors
in the round included Innovacom and GemVentures.
The company said it will use the funding to accelerate
the development of new functions for its ActiveSentry
product, and to increase its sales and marketing.
http://www.intranode.com/
_____________________________________________

o Infrastructure Provider DV2 Raises First Round of Funding

ATLANTA -- DV2, which provides managed colocation
space and enterprise data storage services, said
it raised its first round of funding for an undisclosed
amount led by Nashville-based DC Investment Partners,
which will have representation on the company's
board. The company said it is still raising funds
for expansion to different U.S. markets. DV2's products
and services provide turnkey, outsourced data storage,
managed server and colocation services, and communications
services for users with large storage or high bandwidth
transport needs.
http://www.dv2.com/
_____________________________________________

o Light Technology Firm ELAM-T Has $2.9 Million in First Round

LONDON -- ELAM-T, which develops organic photo and
electro-luminescent materials and devices, said
it has secured GBP 2.04 million ($2.9 million) in
its first round of funding led by Classic Fund Management.
Additional investors include I-NET, Advent VCT,
Advent 2VCT, Elder Street Millenium, British Smaller
Technology Companies, and individual investors.
Elam-T, a spin-off of South Bank University, was
founded by Professor P. Kathirgamanathan, who is
developing light emitting technology. Telephone
44-0-207-815-6918.
_____________________________________________

o Swedish Mobile Tech Firm Mobyson Raises $7.8 Million

STOCKHOLM -- Mobyson, which provides mobile content
and telephony services targeting the European youth
market, said it raised SEK 80 million ($7.8 million)
in its first round of funding. Investors in the
round included Catella Fonder, Kaupthing Investment
Bank, Skandia, and American venture capital firm
Trident Capital. The company said it will use the
funding to continue its expansion in the Nordic
region.
http://www.mobyson.no/
_____________________________________________

o Net Communications Firm TeleNova Has $12 Million Round Two

MIAMI -- TeleNova, which provides Internet-based
communications and information management applications,
said it has raised $12 million in its second round
of funding led by GE Equity and J.P. Morgan Latin
America Capital Partners. Bank of America Securities
also participated in the round. Both GE Equity and
J.P. Morgan will take a seat on TeleNova's board
of directors. TeleNova has raised a total of $21
million in equity financing, in addition to a $5
million credit facility from Cisco Capital.
http://www.telenova.net/
_____________________________________________

o Net Health Data Firm Helios Health Has $20 Million Round Two

ATLANTA -- Helios Health, a provider of Internet-enabled
consumer health information in physicians' offices,
said it closed its second round of funding with
$20 million. Investors in this round include Bay
City Capital, Ventiv Health, and previous investors
Alliance Technology Ventures, DC Investment Partners,
and FCA Venture Partners. The company said it will
use the money to support product and business development
and to continue its distribution efforts to primary
care physicians. Regina Herzlinger, the Nancy R.
McPherson professor of business administration at
the Harvard Business School, and George Poste, CEO
of Health Technology Networks, have both joined
the company's board of directors.
http://www.helioshealth.com/
_____________________________________________

o Online Financial Tool StatementOne Has $15 Million Round Two

LAWRENCEVILLE, N.J. -- StatementOne, which provides
brokers, financial advisors, and investors with
data aggregation services and consolidated financial
statements, said it raised $15 million in its second
round of funding. Investors include Boston Ventures
Management, Charterhouse Group  International, Allianz
of America, Desai Capital Management, and Axiom
Venture Partners. The company will use the funds
for software development and to rollout its first
product, an online portal that provides financial
advisors and their clients statements and performance
reports.
http://www.statementone.com/
_____________________________________________

o Optical Networking Firm Cinta Has $36 Million Second Round

SAN JOSE, Calif. -- Cinta, whch develops carrier-class
optical networking solutions, said it raised $36
million in its second round of financing. The round
was led by strategic investor ADC Telecommunications
and included investments from Corning, Enron Broadband,
Comdisco Ventures, and previous investors Battery
Ventures and Sequoia Capital. The company said it
will use the funding to accelerate its growth and
product development plans. The company raised its
initial round of $15 million in November of 1999.
http://www.cinta.com/
_____________________________________________

o Salesdriver.com Raises $6.2 Million Second Round

MAYNARD, Mass. -- Salesdriver.com, which provides
sales professionals with online salesforce incentive
programs, said it has secured $6.2 million in its
second round of funding led by the Boston office
of the Summit Accelerator Fund and Toronto-based
VenGrowth. The company said it will use the funds
to further develop its product, expand sales and
marketing, support internal growth, and to continue
to build a framework of distribution channels through
alliances and business partners.
http://www.salesdriver.com/
_____________________________________________

o Clinical Data Provider Integrative Medicine Gets $4 Million

NEWTON, Mass. -- Integrative Medicine Communications,
which provides healthcare professionals, consumers,
and executives with clinical information, said it
has secured $4 million in funding led by Ascent
Venture Partners of Boston. Other investors included
Citizens Capital Corp. and previous investors Health
Business Partners, financial advisors for the complementary
healthcare, nutrition and natural products industries,
and Industrial Development Partners.
http://www.onemedicine.com/
_____________________________________________

o Data and Content Manager Picdar Raises $7.2 Million From 3i

MANCHESTER, England -- Picdar Group, which provides
digital asset management software and information
technology services, raised GBP 5 million ($7.2
million) according to 3i, the sole investor in the
funding. The company said it will use the capital
to increase its sales and marketing, develop new
services, and expand overseas. Picdar's technology
is designed to enable the management, retrieval,
and commercialization of pictures, graphics, advertisements,
movies, sound files, documents, and text. The company
said its customers include 70% of the U.K. national
press.
http://www.picdar.com/
_____________________________________________

o Digital Video Firm Video Networks Lands $66 Million Series H

ATLANTA -- Video Networks, a digital video business-to-business
applications firm, said it has raised $66 million
in its Series H round of financing with $20 million
from lead investor Quadrangle Group and the rest
from new investors Reuters, Halpern Denny & Company,
Enron, and PanAmSat, among others, and previous
investors including Alliance Technology Ventures,
Bank of America Capital Investors, AT&T Ventures,
and Kinetic Ventures. Josh Steiner and Steve Rattner,
managing principles at Quadrangle, will join Video
Network's board. Video Networks said it will use
the funds to market and launch the company's upcoming
name change to Pathfire expected in early 2001 and
for product development.
http://www.vninet.com/
_____________________________________________

o EFI Invests in Graphics Network D2P and Venture Fund DOR

FOSTER CITY, Calif. -- Electronics For Imaging (EFI)
said it made two investments as part of its $20
million venture fund announced in October. EFI invested
an undisclosed amount of funds in D2P Australia,
a network for file-transfer and communications for
the graphics arts industry, and DOR Ventures Partners,
an international investor in emerging new media
publishing, digital printing technologies, and image-related
companies. The company said neither investment was
part of a round.
http://www.d2p.com.au/
http://www.dorventures.com /
_____________________________________________

o Inkra Networks Raises $26.5 Million Round

PALO ALTO, Calif. -- Norwest Venture Partners, a
venture capital firm focused on emerging growth
IT companies, said it has invested in Inkra Networks,
which designs carrier systems to deliver streamlined
and enhanced services for Internet data centers,
bringing the round to a total of $26.5 million.
Battery Ventures and StormVentures also provided
funding. Inkra said it will use the funding for
product and marketing development, recruitment,
and to strengthen its management team.
http://www.norwestvp.com/
_____________________________________________

o Online Customer Relations Firm Norkom Raises $17 Million

DUBLIN -- Norkom, a Dublin-based provider of online
customer relationship management software and services,
said it raised $17 million in its latest round of
funding. The round included investments from Hibernia
Capital Partners, Independent Newspapers Ireland,
the Reihill family, and Denis O'Brien, all previous
investors in the company. The company said it will
use the funding to continue its international expansion.
The company was established in Ireland in March
1998 and has expanded to include offices in England,
Belgium, France, The Netherlands, Sweden, and the
U.S.
http://www.norkom.com/
_____________________________________________

o Online Research and Data Manager FIRM Raises $5 Million

NEW YORK -- Future Information Research Management
(FIRM), which provides data management and research
services, raised $5 million, according to sole investor
AC Ventures, the venture capital unit of Andersen
Consulting. AC Ventures said it would take an active
role in FIRM's management as a result of the investment.
FIRM said it will use the capital to continue its
global expansion. Board changes as a result of the
investment are not being released yet. Currently
the company operates from offices in New York, San
Francisco, Oslo, London, and Stockholm. Previous
investors in the company include Bjorn Haugland
and undisclosed individuals.
http://www.confirmit.com/
_____________________________________________

o Utility.com Raises Over $22 Million in Third Funding Round

EMERYVILLE, Calif. -- Utility.com, an Internet utility
company, said it has closed its third round of venture
funding, raising over $22 million. Gaz de France,
a European gas company, led the round that included
Sumitomo Corp. of Japan. Previous investors Southern
Company Energy Marketing, Sempra Energy Trading,
idealab! Capital Partners, Trident Capital, Primedia
Ventures, Kinetic Ventures, TL Ventures, and Moore
Capital Management also participated in the round.
Utility.com said it will use the funds to support
expanding operations.
http://www.utility.com/
_____________________________________________

o Canadian Travel Site Tripeze.com Gets $1 Million Third Round

CALGARY -- Tripeze.com, a Canadian-based travel
Web site, said it received $1 million as part of
its third round of funding from Network Capital
and Starlink Communications, both based in Calgary.
Starlink is a public merchant capital banking company
managed by Network Capital. The company said it
will use the investment to continue adding features
and services to its Web site. Other investors include
Equant, a British-Dutch company that operates a
telecommunications network spanning 220 countries
and territories. The company has raised $13 million
to date.
http://www.tripeze.com/
_____________________________________________

o Internet Access Firm Winfire Gets $17 Million Round Three

NEWPORT BEACH, Calif. -- Winfire, a provider of
high-speed Internet access and a free DSL service,
said it has raised $17 million in its third round
of funding from Conexant, Rhythms NetConnections,
Global Crossing, and  Chase H&Q. The company also
said it will begin licensing its network operating
system to offer personalized broadband and service
packages to customers. Winfire is also backed by
IMI, an Orange County venture capital fund.
http://www.winfire.com/
_____________________________________________

o Online Investment Exchange BDirect Gets $6 Million Series C

BOSTON -- BDirect Capital, an online financial services
firm that enables accredited individual investors
to participate in the same  equity deals as institutions,
said it received $6 million in its Series C round
from Old Mutual. The company will use the funds
for general corporate purposes, such as marketing
and technology development. Eric Anstee, Old Mutual's
chief executive of financial services, will join
the company's board of directors.
http://www.bdirectcapital.com/
_____________________________________________

o Search Firm Requisite Technology Has $30 Million Mezzanine

WESTMINISTER, Colo. -- Requisite Technology, which
makes a product finding engine for e-commerce sites,
raised $30 million in a mezzanine round led by the
venture divisions of strategic partners, Oracle
Venture Fund and SAP Ventures. Previous investors
Trinity Ventures; Bowman Capital; and Mohr, Davidow
also participated. There will be no board changes
as a result of the investment. Requisite Technology
said it will use the funds for operating expenses.
http://www.requisite.com/
_____________________________________________

o T-Venture Takes 25% Equity Stake in B2B Marketplace XMarket

BONN, Germany -- An investment group, led by T-Venture,
the venture capital subsidiary of Deutsche Telekom,
said it has taken a 25% equity stake in XMarket,
a business-to-business online marketplace, according
to the company. Bonn-Innova was also involved in
the investment and strategic partnership.
http://www.xmarket.de/
_____________________________________________

o e-Commerce Technology Firm RichFX Gets $33 Million Series D

NEW YORK -- RichFX, a provider of compression technology
and Internet infrastructure technology for online
retailers, said it raised $33 million in its Series
D round of funding, led by Morgan Stanley Dean Witter.
Other investors include Mellon Ventures, Deutsche
Banc Alex. Brown, Prudential Volpe Technology Group's
Partner Fund, Itochu International, Reicon Capital,
Thomas Weisel Partners, and previous investors RealNetworks,
Polaris Ventures Capital, Coral Ventures, and Veritas
Ventures Partners. The company said it will use
the funds to develop its technology, sales and marketing,
and for research and development.
http://www.richfx.com/

======= Bad News =======

o Drinks.com Cuts Half of Staff, Struggles to Stay Alive

CHICAGO -- Drinks.com, an online marketplace for
wine, spirits, and beer launched in March, said
it laid off approximately 40 people, leaving the
company with 20 employees. The struggling company
is currently working on merging with e-Vineyards,
an online wine retailer, and raising additional
capital. The company said if neither deal pulls
through within the next two weeks, the company will
shut down. Drinks.com has received funding from
CIT Venture Capital, Swander Pace Capital, Wasserstein
Perella Venture Capital, Texas Pacific Group, and
Crescent Private Capital.
http://www.drinks.com/
_____________________________________________

o Messaging Firm WebTaggers Shuts Down Due to Lack of Funding

AUSTIN, Texas -- WebTaggers.com, a content services
provider for e-commerce companies, shut down operations
last week, according to Austin Ventures spin-off
AV Labs, which funded the company. The company was
unable to raise enough funding. The firm was close
to closing its first round of funding beyond the
$500,000 invested by AV Labs last year but that
fell through when a publicly traded corporate investor
failed to invest as planned, leaving the company
short of its goal to raise $6.5 million. AV Labs
said it placed all 32 former WebTaggers.com employees
with other companies in its portfolio.
http://www.webtaggers.com/

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

o Advocacy Group Environmental Defense Spins-off LocusPocus

NEW YORK -- Environmental Defense, a U.S. non-profit
advocacy organization, said it spun off LocusPocus,
a for-profit Internet services company. LocusPocus
will provide Web-based membership management and
communications services to help membership-based
organizations recruit, engage and retain members.
Environmental Defense will hold a minority ownership
interest in LocusPocus. Other LocusPocus investors
include new Millennium Capital Partners and individual
investors Bob Epstein, cofounder of MicroDisplay,
and Lisa Gansky, cofounder of Ofoto.
http://www.locuspocus.com/
_____________________________________________

o Payback Training Systems Changes Name to Avaltus

SALT LAKE CITY -- Payback Training Systems, previously
a vendor of training content, said it has changed
its business focus to content conversion and management
services and has changed its name to Avaltus. The
company received $1.55 million in its second round
of funding from Cleveland Pacific Equity Ventures
and the NFL Quarterback Club in May of this year.
http://www.avaltus.com/
_____________________________________________

o Vibrance Networks Announces Company, Platform

SAN JOSE, Calif. -- Vibrance Networks said it officially
announced its company and its Internet appliance
software and services platform. The product enables
OEMs, Internet access providers, and channel partners
to develop Internet appliances that give end users
personalized, rich media Web content. The Vibrance
platform targets hardware OEMs that are developing
Internet access devices such as Web terminals, wireless
residential gateways, and set-top boxes, as well
as channel partners aiming to deliver branded Internet
access devices. The company is backed by individual
investors and Garage.com.
http://www.vibrancenet.com/

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

o ING Group Forms Partnership with and Invests in PayPal

PALO ALTO, Calif. -- Internet-based payment services
provider PayPal said it formed a partnership with
financial services firm ING Group under which ING
will help PayPal expand its online payment services
to Europe and invest in PayPal parent company X.com's
Series D round of funding. X.com, which last week
announced it was ending its online financial services
in order to focus exclusively on its online payment
services, is backed by Credit Agricole, Deutsche
Bank, Digital Century Capital, Goldman Sachs, Hikari
Tsushin, idealab! Capital Partners, J.P. Morgan,
Madison Dearborn Partners, Qualcomm, and TAMC.
http://www.paypal.com/

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

o Broadband Firms Eureka and Gillette Global Network Merge

NEW YORK -- Eureka Broadband, an ASP that provides
business customers with broadband network applications
and services, and Gillette Global Network, a telecommunications
firm, said they are merging in an all-stock transaction
and will operate as a 50-50 partnership. Spectrum
Equity Investors and Lazard Technology Partners,
both previous investors in each company, are planning
on providing additional funding to the new company.
Jeffrey E. Ginsberg, chairman and CEO of Eureka,
will be chairman of the company and Robert W. Vanech,
founder and president of Eureka, will be president.
Gillette said the new name has not been decided
and the two companies will operate under their current
names until they become fully integrated in the
third quarter of 2001. Eureka is backed by Spectrum
Equity Investors, CB Richard Ellis Investors, and
AT&T Ventures, and Gillette is backed by Encore
Venture Partners, Lazard Technology Partners, and
Shoemaker Investments.
http://www.eurekabroadband.com/
http://www.ggn.com/
_____________________________________________

o Hotel Firm InnHanse Acquires Trade Show Firm Configurations

ORLANDO, Fla. -- InnHanse, a Web applications and
systems firm focusing on the hospitality industry,
said it has acquired Configurations, a trade show
firm owned by Rajiv Kapur, InnHanse's executive
vice president of sales and marketing, for an undisclosed
amount. Innhouse said both companies will retain
their Orlando locations and confirmed that Innhouse
is privately funded, but would not release the names
of investors.
http://www.configurations.net/
http://www.innhouse.com/
_____________________________________________

o Wireless App Firm Infolio Acquires Wireless Provider Nopex

SAN JOSE, Calif. -- Infolio, a wireless infrastructure
software firm that focuses on applications for businesses,
said it has acquired Nopex, a Hong Kong-based wireless
technology provider. The details of the transaction
were not disclosed. Infolio said the new company
will merge technologies and applications and will
retain Nopex's Hong Kong office as Infolio's Asia
office. Infolio raised $11.5 in its Series B round
of financing led by Blueprint Ventures in October.
http://www.infolio.com/

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

o BlueLight.com Appoints Kmart Executive to Board

SAN FRANCISCO -- BlueLight.com, the consumer shopping
Web site that offers Kmart products and free Internet
service, named Randy Allen, Kmart's executive vice
president of strategic planning and chief information
officer, as the fifth member on its board of directors.
Mr. Allen will be filling the board seat of retiring
Kmart vice chairman Mike Bozic. Backers for BlueLight.com
include Kmart, Softbank, and Martha Stewart Living
Omnimedia.
http://www.bluelight.com/
_____________________________________________

o Quadrant Partner Joins ICP Firm Global Broadband As Chairman

NEW YORK -- Global Broadband, an integrated communications
provider of bundled voice and Internet services
using optical networking technology, said it appointed
Benjamin Scott as chairman of the company's board.
Mr. Scott is a partner at Quadrant Management, an
early-stage private equity investment firm. He was
previously chairman, president and chief executive
officer of IXC Communications. Global Broadband
is backed by an undisclosed Boston-based venture
capital firm and other unnamed investors.
http://www.glbbinc.com/
_____________________________________________

o Wireless Services Firm WISP Names New Chairman

CLEVELAND -- Wireless Internet Solutions Provider
(WISP), a company that delivers platform-independent
wireless services, primarily for corporations, said
it named Rao Chalasani as its chairman. Before joining
WISP, Mr. Chalasani served as chief investment strategist
for First Union Securities. He also served as the
company's chief spokesman on financial market issues.
WISP is backed by individual investors and is pursuing
an institutional round.
http://www.wispinc.com/

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

o Optical Firm Onetta Taps Ex-Redback CEO as Chair, Pres, CEO

SAN JOSE, Calif. -- Onetta, which develops and manufactures
intelligent optical networking sub-systems, said
it named Dennis Barsema as its chairman, president
and CEO. Mr. Barsema is currently the vice chairman
of Redback and chairman of the board of Telenisus.
Mr. Barsema is the former CEO of Redback and has
worked in positions with AT&T Paradyne and Centigram.
Onetta was founded early this year and raised $12
million in March in a Series A round co-led by Matrix
Partners and Sequoia Capital. The company's products,
which it expects to release next year, will enable
systems integrators and carriers to build high-capacity
optical networks with flexible bandwidth provisioning.
http://www.onetta.com/
_____________________________________________

o E-Firm Soneta Appoints E-Commerce Exec as President and CEO

DALLAS -- Soneta, an e-business infrastructure,
applications, and outsourcing firm, said it has
named Daniel M. Cofall as the company's first president
and CEO. Daniel Cofall founded BrightStar Information
Technology Group, an e-commerce firm, and most recently
was CFO at iChoose, a developer of e-commerce marketing
systems. He is also a professor of finance at the
University of Dallas. Soneta raised $2 million in
its Series A round from Yazam earlier this month.
http://www.soneta.com/
_____________________________________________

o Optical Firm Aurora Networks Has New President and CEO

SANTA CLARA, Calif. -- Aurora Networks, a developer
of optical transport systems for multiple system
operators of broadband networks, said it named Tony
G. Werner as its new president and CEO. Mr. Werner
was most recently executive vice president of engineering
and CTO of AT&T Broadband. Former chief executive
officer and company founder Guy Sucharszuk remains
chairman and COO of the company. Aurora Networks
raised a $10 million Series A round of funding earlier
this year and is backed by Battery Ventures.
http://www.aurora.com/
_____________________________________________

o Zactus Names Former IllusionFusion! Founder CEO

NEW YORK -- Zactus, which develops a Web-based application
platform that enables users to guide themselves
through a process or project over a period of time,
said it appointed Peter Corbett as chief executive
officer. Mr. Corbett founded IllusionFusion!, a
digital media company. Before launching the company,
Mr. Corbett ran a production company, where he directed
commercials. Zactus also runs Zactus.com, a site
for independent musicians  to manage and chart the
progress of their careers. The company was founded
by KenTech Ventures, an Israeli incubator, and has
raised $3.3 million in its first round of funding
from OphirTech, Emicom, and Ampal  Industries. Mr.
Corbett replaces Tamar Shachar, an interim CEO appointed
by KenTech Ventures.
http://www.zactus.com/
_____________________________________________

o AvantCom Network Appoints Intel Exec. as President and CEO

SAN JOSE, Calif. -- AvantCom Network, a supplier
of infrastructure software and services for the
high-tech manufacturing industries, said it appointed
Ken Thompson as its new president and CEO. Mr. Thompson,
former vice president in the technology manufacturing
group at Intel, will be replacing company founder
Sanjeev Chitre as president and CEO. Mr. Chitre
has been acting as president and CEO since founding
the company and will now serve as chairman of the
board. AvantCom Network, which plans to hold a round
of funding before the end of the year, is backed
by Cymer and other institutional and individual
investors.
http://www.avantcom.net/
_____________________________________________

o MicroCreditCard Names Former BroadIP Networks Head as CEO

WASHINGTON -- MicroCreditCard, a provider of credit
card based microtransaction technology, said it
named Leslie Poole as chief executive officer. Mr.
Poole previously served as CEO of BroadIP Networks.
He has also served as senior vice president of sales
and marketing for Network Security Technologies.
MicroCreditCard's investors include PSINet and individual
investors. The company is currently seeking additional
funding.
http://www.microcreditcard.com/
_____________________________________________

o Human Resource Tech Company Sylinq Names CEO

SALT LAKE CITY -- Sylinq, a provider of Web and
interactive voice response-based technology for
use in the human resources/benefits self-service
industry, said it named Terry Holmes as its chief
executive officer. Mr. Holmes previously served
as president and CEO of BEST (Brookline Employer
Services and Technology), a company that merged
with Sylinq two weeks ago. Sylinq is backed by individual
investors and is raising its Series A round of funding.
http://www.sylinq.com/
_____________________________________________

o Billing Systems ASP Derivion Names COO as President

ATLANTA -- Derivion, an ASP that focuses on billing
systems, said it has named David Fiacco as president
in addition to his current role as COO. Derivion
received $40 million in its third round of financing
led by Capital Z Partners in January of this year.
http://www.derivion.com/
_____________________________________________

o Software Firm Portris Names Co-CEO and President

WASHINGTON -- U.S. Technologies, a publicly traded
developer of early-stage companies and a business-to-business
technologies integrator, said Portris, one of its
eight associated companies, appointed Brien F. Morgan
as president, co-CEO, and a board member. Portris
is a software company developing team-oriented information
management technology. Charles Henderson, Portris's
founder, serves as the other co-CEO. Prior to joining
Portris, Mr. Morgan served as a corporate senior
vice president of Lockheed Martin. Portris also
announced that Mark DiSalvo has joined its board
of directors. Mr. DiSalvo is president and CEO of
Lingua Franca, d.b.a. Semaphore, and its wholly
owned subsidiaries Semaphore Europe Ltd. and Sema4
AG. The board now totals nine members.
http://www.usxx.com/

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

o Portview Communications Closes $61 Million Fund-Raising

RA'ANANA, Israel -- Portview Communications, an
international venture capital fund specializing
in communications technology, said it closed its
fund-raising with $61 million. The company focuses
on public network technology and products designed
for incumbent carriers. The fund will invest between
$2 million and $7 million in 12 companies, taking
an equity stake of between 5% and 25%. The fund
currently operates in the United Kingdom and Israel
and will begin operations in Washington, D.C. The
company said it will invest in companies in Finland,
Israel, Sweden, the U.K., and the U.S. Portview
has made investments in PacetLight Networks, Ceragon
Networks, and Quicksilver Technology. Portview Communications
is the successor fund to Catalyst, which invested
in TTI Team Telecom, Floware, Tdsoft Communications,
Intralinks, and Ridgeway. Investors in the fund
included AMP, CDB Webtech, and Siemens.
http://www.portviewcommunications.com/
_____________________________________________

o Cambrian Ventures Raising Small Seed Fund From Individuals

MOUNTAIN VIEW, Calif. -- Cambrian Ventures, a new
investment firm started by the founders of Junglee,
said it is raising a small fund.The new firm said
it is not seeking institutional investors. Cambrian
is seeking investment from individuals, it said,
in order to keep the fund small, which will enable
it to better work with its portfolio companies.
Backers of the firm's fund so far include Amazon.com
CEO Jeff Bezos and executives from Compaq Computer,
Nortel Networks, and Yahoo!. Cambrian Ventures focuses
on early stage companies developing Internet application
platforms and Internet and Web infrastructure sectors.
The company's founders, Venky Harinarayan and Anand
Rajaraman, co-founded e-commerce comparison firm
Junglee, which they sold to Amazon.com for $250
million in 1998.
http://www.cambrianventures.com/
_____________________________________________

o ETF Group Opens First U.S. Office in New York

NEW YORK -- ETF Group, a European-based investment
firm that focuses on emerging technology, media
and telecom companies, said it opened its first
U.S. office in New York City. ETF Group US will
be headed by Michael Sheldon, president, and Hans
Strander, chief investment officer. ETF Group US
will focus on helping its portfolio companies expand
internationally and will target broadband and wireless
enabling technologies, online financial services,
Net services companies, and optical components communications
companies. ETF has 20 U.S. portfolio companies with
approximately $60 million invested. The company
said it expects to open a San Francisco office by
the end of next year.
http://www.etfgroup.com/
_____________________________________________

o TL Ventures Opens LA Office With New Staff

LOS ANGELES -- TL Ventures, an early-stage venture
capital firm said it opened a new office in Santa
Monica, California to be headed by managing directors
Robert Verratti, recently promoted from venture
partner, and Massoud Entekhabi, who joins the firm
after serving as managing partner of the high tech
practice for PricewaterhouseCoopers. The office
also includes new principals Sujit Banergee, who
previously served at PricewaterhouseCoopers,and
Neil Malik, previously with Brentwood Associates
and Olympus Partners. The office is primarily focused
on seed and early-stage investments in software,
communications, biotech and Internet companies in
Southern California.
http://www.tlventures.com/

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

o St. Paul Venture Capital Announces Second Partner in Boston

ANDOVER, Mass. -- St. Paul Venture Capital said
engineering executive Tom Rowbotham will be the
second venture partner at the company's Boston office
as part of its expansion into New England. Tom Rowbotham
was most recently director of technology at British
Telecom. He will focus on investments in early-stage
telecommunications companies.
http://www.stpaulvc.com/
_____________________________________________

o Windward Ventures Names Advisor and Ex-Net Exec as Partners

SAN DIEGO -- Windward Ventures, an investment firm
that focuses on early stage technology firms, said
it added Renee Masi and Peter Shaw as partners.
Ms. Masi has been an advisor to the company since
1998 and Mr. Shaw was formerly president and CEO
of Sitematic, an Internet service firm that was
acquired in 1999 by NetObjects. Windward recently
launched a $70 million fund.
http://www.windwardventures.com/

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

o Avolo

NEW YORK -- An item in yesterday's VentureWire incorrectly
reported the amount of funding Avolo received in
its most recent round of funding. The online aviation
parts and services marketplace raised $9 million
in financing.
_____________________________________________

o Malibu Networks

NEW YORK -- An item in yesterday's VentureWire on
the second round of funding for wireless technology
developer Malibu Networks  failed to identify Fremont
Communications, TL Ventures, NextCom Ventures, Dow
Chemical, and Enertech Capital Partners as new investors
to the company.
_____________________________________________

o Telespree

NEW YORK -- An item in Monday's VentureWire regarding
Telespree's second round of funding incorrectly
stated that lead investor Lucent Venture Partners
was a previous investor in the company. It is a
new investor.

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