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&nbsp;<font face="verdana, verdana, arial, geneva, helvetica" size=1 color="white"><b>For Jeffrey Dasovich, Enron</b></font>
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<b>VENTURE MARKET SUMMARY</b>
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<td><br><div id="market"><font face="verdana, arial, geneva, helvetica" size="2">Biotech players topped the new money list to close the week, raising more than $62 million. DNA sequencing technology developer Solexa led the pack with a solid $17-million Series B led by Schroder Ventures Life Sciences. The top performer in the slumping IT space was Metabyte Networks, a provider of personalized television technolgy, which secured $10 million in second-round financing with some strategic help from Canal+ Technologies.  <br><br>On the bad news front, Cinta Networks tried to show investors it could control costs by pink-slipping 17 people from its 130-person workforce in the midst of raising $40 million to $50 million in third-round funds. Optical firm Mahi Networks added to the week&#39;s layoffs by axing one-third of its 300-employee staff
in an effort to control its burn rate. VC firms were not immune either as CMGI@Ventures confirmed three general partners will leave the struggling firm.    <br><br>Despite the layoffs and departures, there was a glimmer of hope in the M&amp;A world, as the sluggish market got a boost from Capital One Financial, which said it will acquire PeopleFirst.com for 3.7 million shares of its stock, worth some $150 million.<br><i> - By <a href="mailto:provost@technologicp.com">Taran Provost</a></i></font></div></td>
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October 9:<br>San Francisco, CA<br></font>
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Biotech and drug development are hot!  In 2001 venture money has been flowing in, but will it last? We&#39;ve convened four industry roundtables with a mix of venture capital, pharmaceutical, regulatory, biotech and investment professionals to put the sector in perspective. <a href="http://secure.technologicpartners.com/hcoregister.asp"> Register today to learn more! </a></font>
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<table BGCOLOR="#eeeeee"><tr><td><pre>Saving Costs via Optics

With capital scarce and bandwidth aplenty, optical
components manufacturers face tough market conditions.
Now, systems companies are focusing on reducing costs
and helping carriers do more with the capacity they
already have. Happily, a number of optical technology
companies appear well positioned to capitalize on this
trend. At Optical Portfolio, you&#39;ll hear from startups
such as Symmorphix, Telephotonics, Pine Photonics, and
Proximion Fiber Optics, which are using integration,
tunability, and real-time network monitoring to create
more intelligent and efficient optical networks.

VentureWire Optical Portfolio, Boston Marriott Cambridge,
October 24 & 25. Register online:
	<a target=" _new" href="http://venturewire.com/ads/ad.asp?id=1278">&nbsp;http://www.opticalportfolio.com</a></pre></td></tr></table>
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<font face="verdana, arial, geneva, helvetica" size="1" color="#000000">Advertise</font></a> &#8226; <a href="http://venturewire.gazooba.com/cid1201/tellafriend.html"><font face="verdana, arial, geneva, helvetica" size="1" color="#000000">Tell a Friend</font></a>
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<a href="http://venturewire.com/index.asp"><font face="verdana, verdana, arial, geneva, helvetica" SIZE=2 color="black"><b>VENTUREWIRE INDEX</b></font></a>
<a href="http://venturewire.com/index.asp"><img alt='VentureWire Index' border='0' src="http://208.185.40.7/charts/images/newsAVWIX.jpg"></a><br>
<font face="verdana, arial, geneva, helvetica" size="1" color="gray">510.5 &nbsp; -0.99%</font>
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<font face="verdana, verdana, arial, geneva, helvetica" SIZE=2 color="black"><b>NOTABLE DEALS</b></font><br><br>
<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwMJHQKOJPHI"><b><font face="verdana, arial, geneva, helvetica" size="2">Capital One Acquires PeopleFirst for $150M in Stock</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=MJHQKOJPHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">FALLS CHURCH, VA. -- Capital One Financial, a publicly traded holding company with interests that include Capital One Bank and Capital One F.S.B., said it will acquire San Diego, Calif.-based PeopleFirst.com, an independent online auto loan provider for 3.7 million shares of Capital One stock, worth approximately $150 million.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=MJHQKOJPHI">more..</a>]--><br>
<a href="http://www.peoplefirst.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.peoplefirst.com</font></a>
<br>
<a href="http://www.capitalone.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.capitalone.com</font></a>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwHHIPNHKPHI"><b><font face="verdana, arial, geneva, helvetica" size="2">Cinta Cuts 13% of Staff in Middle of $50M Third Round </font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=HHIPNHKPHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">SAN JOSE, CALIF. -- Cinta Networks, a provider of optical networking systems, said it cut 17 people out of a 130-person workforce last week in order to better manage the company&#39;s operating expenses in current economic conditions. Cinta said the layoffs occurred across the board and that the laid-off staff received severance. The company also said it has begun raising a $40-million to $50-million third round that it expects to complete by the fourth quarter of this year.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=HHIPNHKPHI">more..</a>]--><br>
<a href="http://www.cintanetworks.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.cintanetworks.com</font></a>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwIJQKKIKPHI"><b><font face="verdana, arial, geneva, helvetica" size="2">Mahi Networks Lays Off One-Third of Staff</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=IJQKKIKPHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">PETALUMA, CALIF. -- Mahi Networks, a startup developing optical technology that joins carriers&#39; metro-area networks to wide-area optical nets, has laid off about one-third of its 300 employees as a result of the contraction in the telecommunications market, according to a company spokesperson.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=IJQKKIKPHI">more..</a>]--><br>
<a href="http://www.mahinetworks.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.mahinetworks.com</font></a>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwINMHNNKPHI"><b><font face="verdana, arial, geneva, helvetica" size="2">Atlas Venture Eyes Security Software, Enterprise Networking</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=INMHNNKPHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">BOSTON -- Despite a continuing slowdown in overall venture investing, Atlas Venture is gearing up to make new investments in the security software and enterprise networking fields, two areas it views as relatively uncrowded and rife with opportunity, Michael Feinstein, a principal at the Boston-based firm, told VentureWire.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=INMHNNKPHI">more..</a>]--><br>
<a href="http://www.atlasventure.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.atlasventure.com</font></a>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwMJJOQKKPHI"><b><font face="verdana, arial, geneva, helvetica" size="2">DNA Sequencing Firm Solexa Raises $17-Million Second Round</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=MJJOQKKPHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">CAMBRIDGE, ENGLAND -- Solexa, a developer of high-throughput DNA sequencing, said it raised GBP 12 million ($17 million) in its Series B round of funding. The company said it would use the capital to continue the development of its single-molecule sequencing technologies.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=MJJOQKKPHI">more..</a>]--><br>
<a href="http://www.solexa.co.uk" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.solexa.co.uk</font></a>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwLPIKMJLPHI"><b><font face="verdana, arial, geneva, helvetica" size="2">Broadband Firm Stargus Launches with $10.15M Series B</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=LPIKMJLPHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">ANDOVER, MASS. -- Stargus, a developer of a broadband access management system, announced its launch and the close of $10.15 million in Series B funding from ADC Telecommunications,  Castile Ventures, Lauder Partners, Pilot House Ventures, Still River Fund, and YAS Broadband Ventures. Proceeds from the round will be dedicated to product development, as well as sales and marketing, said president and CEO, Russell H. Stephens.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=LPIKMJLPHI">more..</a>]--><br>
<a href="http://www.stargus.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.stargus.com</font></a>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwNIJKONJPHI"><b><font face="verdana, arial, geneva, helvetica" size="2">Personal TV Firm Metabyte Receives $10 Million in Series B</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=NIJKONJPHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">FREMONT, CALIF. -- Metabyte Networks, a firm providing television personalization technology, raised $10 million in its second round of funding from new strategic partner Canal+ Technologies, a provider of interactive television software based in Cupertino, Calif., and new investor Scientific Atlanta, a developer of cable transmission and compression technologies based in Lawrenceville, Ga.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=NIJKONJPHI">more..</a>]--><br>
<a href="http://www.mbtv.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.mbtv.com</font></a>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwQHLOHNJPHI"><b><font face="verdana, arial, geneva, helvetica" size="2">Optical Switching Firm SpectraSwitch Raises $6M Series B</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=QHLOHNJPHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">SANTA ROSA, CALIF. -- SpectraSwitch, a designer and manufacturer of optical switching and signal conditioning components, said it has raised $6 million in its Series B round of funding from Advanced Technology Ventures and NIF Ventures. The company said it will use the funding for working capital, product development, and marketing.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=QHLOHNJPHI">more..</a>]--><br>
<a href="http://www.spectraswitch.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.spectraswitch.com</font></a>
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<table BGCOLOR="#eeeeee"><tr><td><pre>Hitting and Missing In the Drug Discovery Goldmine
Genomics and proteomics have opened up new realms of
drug discovery. Some investors have rushed in, but
others haven&#39;t forgotten the lessons learned in previous
biotech booms. Remember gene therapy? There will be
winners and losers in the race to create a new era in
drug therapy. Healthcare Outlook has dedicated a special
track for management presentations by private companies
in genomics and proteomics. We also will convene a
special industry roundtable: From Laboratory to The
Pipeline led by James Reddoch, VP & Senior Research
Analyst, Healthcare Group, Banc of America Securities.
He&#39;ll be joined by:
*Michael Grey, Chief Business Officer, Structual Genomix
*Lowell T. Harmison, Former Deputy Assistant Secretary of
Health, Department of Health and Human Services
*Daniel Janney, Partner, Alta Partners
*Gary Zweiger, Director, Strategic Business Development,
Development, Life Sciences, Agilent Technologies
Come see the companies that will create the change and
the experts that can put it in perspective, Healthcare
Outlook on October 9 in San Francisco. Register today at:<br><a target=" _new" href="http://venturewire.com/ads/ad.asp?id=1280">http://www.healthcareoutlook.com</a></pre></td></tr></table><br>
<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwMJNMMHLPHI"><b><font face="verdana, arial, geneva, helvetica" size="2">Latus Lightworks Suspends Operations</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=MJNMMHLPHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">RICHARDSON, TEXAS -- Latus Lightworks, an optical networking firm, has suspended operations and assigned its financial affairs to Diablo Management, according to a statement on the company&#39;s Web site. The company and its investors could not be reached for comment.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=MJNMMHLPHI">more..</a>]--><br>
<a href="http://www.latuslw.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.latuslw.com</font></a>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwQHLMJQPOHI"><b><font face="verdana, arial, geneva, helvetica" size="2">Online Private Equity Firm Offroad Shuts Down</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=QHLMJQPOHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">SAN FRANCISCO -- OffRoad Capital, an online private securities and technology firm that helped raise funding for startups and venture funds using its online network of high-net-worth individuals, has ceased operations after failing to secure additional financing. A source close to the company told
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=QHLMJQPOHI">more..</a>]--><br>
<a href="http://www.offroadcapital.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.offroadcapital.com</font></a>
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<table border="0" width="80%" cellspacing=0 cellpadding=0><tr><td><a name="vwQPLJPMLPHI"><b><font face="verdana, arial, geneva, helvetica" size="2">Storage Firm Intransa Names Alan Kessler as President & CEO</font></b></a></td><td align="right">&nbsp;&nbsp;<a href="http://alert.venturewire.com/o_mailer.asp?sid=QPLJPMLPHI" target=NEW><img src="http://alert.venturewire.com/images/mail2.gif" border="0" height="10" width="15" alt="mail"></a>&nbsp; </td></tr>
<tr><td colspan=2><font face="verdana, arial, geneva, helvetica" size="2">SANTA CLARA, CALIF. -- Intransa, which developing network storage technology, said it named Alan Kessler, former chief operating officer and general manager of Palm&#39;s platform and products group, as its president and CEO.
 </font><!--[<a href="http://professional.venturewire.com/story.asp?sid=QPLJPMLPHI">more..</a>]--><br>
<a href="http://www.intransa.com" target="_new"><font face="verdana, arial, geneva, helvetica" size="2">http://www.intransa.com</font></a>
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<table BGCOLOR="#eeeeee"><tr><td><pre>Can A New Generation of Companies Change Clinical Trials

The long and expensive $500 million drug approval process
is ripe for innovation.  Healthcare Outlook has dedicated
a special track for management presentations by private
companies hoping to seize the opportunity. We also will
convene a special industry roundtable: From the Pipeline
Through Clinical Trials led by venture capital veteran
Sam Collela of Versant Ventures.  He&#39;ll be joined by:
*Jeff Augen, Director, Business Strategy, Life Sciences,
IBM
*C. Thomas Caskey, President & CEO, Cogene Biotech
Ventures
*Rodney A. Ferguson , General Partner, JP Morgan
*James D. Utterback, Chief Executive Officer, PHT Clinical
Networks
Come see the companies that will create the change and the
experts that can put it in perspective, Healthcare Outlook
on October 9 in San Francisco. Register today at:
	<a target=" _new" href="http://venturewire.com/ads/ad.asp?id=1281">http://www.healthcareoutlook.com</a></pre></td></tr></table>
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